What is Going On? – Wal-Mart (NASDAQ:WMT), Macy’s (NASDAQ:M) and Lululemon (NASDAQ:LULU)

393

By Joseph Carducci on November 13, 2014 Us News

Wal-Mart Stores Inc. (NASDAQ:WMT) is doing pretty well; you will be sorry if you bet against the company. If anyone suggests that the company is going down then they are lying or wrong. Just this morning, the company performed better than expected. They earned $1.15 per share compared to the expected price of $1.12 a share.

In the pre-market trade, the stock increased. The skeptics will probably point out that the revenue generated is not so great. This is probably right. Wal-Mart Stores Inc. (NASDAQ:WMT) announced recently that they will carry on the promotions for Christmas throughout the year, every year. Wal-Mart Stores Inc. (NASDAQ:WMT) is a company that has complete market penetration. For a company such as Wal-Mart Stores Inc. (NASDAQ:WMT), such promos will not help increase growth.

This is not about the company Wal-Mart Stores Inc. (NASDAQ:WMT) though. This is about its stock. The CEO of Wal-Mart Stores Inc. (NASDAQ:WMT), Doug McMillan talked about the seasonal shoppers. He said that the performance of the company is very encouraging in the holiday season. The back-to-school shopping session was quite strong and the Halloween season was also a success. This means that Wal-Mart Stores Inc. (NASDAQ:WMT) had a good quarter overall.

The Halloween was strong at the low end of consumer retail. The customers at Wal-Mart Stores Inc. (NASDAQ:WMT) don’t buy silly costumes without good reason.

Macy’s (NASDAQ:M)’s stocks increased by 5%. For the first time in about six years, the company missed its estimates. This is actually all about supply and demand. In the last few months, Macy’s (NASDAQ:M)’s stock saw two large flushouts. This brought out the skeptics. However, when the company proved itself by coming out better than expected, all the skeptics had to find a way to cover up their criticism.

Lululemon (NASDAQ:LULU)’s shares increase by 5% yesterday after they announced that women were interested in yoga pants. In three months, the stock increased by 15%. However, for the current fiscal, the increase in stock is still in the negative. Lululemon (NASDAQ:LULU)’s supporters have placed their bets on the company. The skeptics do not accept the fact that Lululemon (NASDAQ:LULU) is the kind of company that does not have to be great in order to beat others in a game. Strong consumers will help sell the yoga pants for the company. Even if one considers the worst case scenario, the company will still have something to hold on to – the demand of the customers. This proves that the company can easily beat others and is a good bet. Lululemon (NASDAQ:LULU) is a very strong company.

The supporters of Lululemon (NASDAQ:LULU) have buying more stocks on their agendas; they are not thinking too much about the prospect, knowing that the company is a sure win. This clearly shows that the company’s projections will be great. The buying rate of Lululemon (NASDAQ:LULU)’s stocks is enough to silence the skeptics and give them food for thought. However, if they are still not satisfied, they should really think again.