The first law of forecasting is to assume the future will behave like the past .Event at that, there is a limit to how accurate the forecast can be even when using pass data. This research paper aims to forecast Walmart stock prices over a two year period. But because stock prices are more substantial when they are presented either in monthly or weekly data, the paper will be forecasting over two years but on a monthly basis i.e. Walmart stock prices is forecasted over a 24 month period.
Before we get into details about the paper, Walmart is one of the largest retail stores in the US with branches in other countries either bearing the name Walmart or some other names like Game in Nigeria. It was founded in 1962 by Sam Walton with its
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There is a lot of information out there on Walmart. A lot has been documented and others are just opinions, controversies and just almost everyone has something to say about Walmart. But the paper includes a literature review section which tries to give us a general understanding of Walmart.
Not all variables that will be used to forecast Walmart are retail stores. First, target is included in the model because it is a retail store and one of Walmart’s immediate competitors. As a customer and many other customers like me Target is usually their next store of choice after Walmart or Walmart is the next store of choice after Target. I also compare these two because in almost every other state in which you find Walmart, there is a Target.
Costco is also my next variable of choice because in as much as it’s not a traditional retail store, it’s still one of Walmart’s major competitors and there are a lot of studies out there that compares Walmart to Costco.
S&P 500 is not a retail store but a portfolio of stocks whose risk has been diversified. I.e. systematic risk of the member companies has been diversified (eliminate). And so there is less risk in their stocks. So it is included in the model because Walmart on its own bears more risk (systematic and independent risk) compared to the companies with stocks in the S&P 500.
10 year maturity rate (risk free rate) just measures the amount of risk a company has to
The Wal-Mart company was established on July 2, 1962 in Rogers, Arkansas (History Timeline). The company was based on the vision of Sam Walton, who believed in giving his customers the lowest prices, anytime, anywhere. By 1967 the Walton family owned 27 different stores, and in 1969 they officially incorporated, becoming Wal-Mart Stores, Inc. Just a year later in 1970 Wal-Mart went National, proving the wide spread appeal of Sam Walton's beliefs (History). This same year Wal-Mart became a publicly traded company, with its first shares priced at 16.50. A short year later the company was listed in The New York Stock Exchange (History Timeline). The 80's were a major success for this company. In 1983 the first Sams Club opened, this was and still is a store that sells product in bulk to small businesses and individuals. In 1988 the first Wal-Mart Super center opened. The Super center combined a full scale supermarket with general merchandise to create one stop shopping convenience (History). In 1992 the company suffered a hard hit when Sam Walton passed away at the age of 74. Although they lost the man at the heart of the company they were determined to carry on with his vision, and so they did. In 1996 they opened their first stores in China (History Timeline). By 2002 they reach the top of the Fortune 500 ranking of Americas largest companies. In 2012 Wal-Mart celebrated 50 successful years of business. Today the company employs 2.2 million associates worldwide and serves
The retail industry is one of the largest industries in the world, by business numbers and employees. Plunkett Research Ltd. As of 2011 Wal-Mart was still the giant of the retail market. As Wal-Mart nearest competitor Target heats up the market, Target seems to be gaining in customer loyalty and has picked up on Wal-Marts grocery strategy. According to the Plunkett report, recession ravaged consumers not only want dry goods at a discount, but they also want groceries discounted (PlunkettResearch.Com, 2012). Target also has been gaining customers who want stylish well organized stores that appeal to their senses.
n the article "From the Unites States of WalMart" Written by John Dicker the narrator explains the power of the Walmart stores.
Let us first explore the functions that Walmart serves for society. First and most obvious, Walmart provides millions of people with the goods and services they require to carry on their day to day lives. When most people think of Walmart they think of a simple grocery story, but Walmart is so much more than that. At many Walmart stores, there are bank branches, small doctors’ offices, hairdressers, pharmacies, and various other business. Walmart brings together all these services and gives them a home all under one roof. Perhaps a broader view of Walmart’s function for society the amount of jobs the company creates. Everyone indirectly needs money to survive, everyone works to earn money, and Walmart provides jobs to 1.3 million people in the United States alone. ("Walmart Locations Around the World - United States.") With a nearly 478 billion dollar revenue in 2013, one could say that Walmart Corporation is a major driving force in
Wal-Mart is a “Big Business” and they have held this title for many years. That is not to say they present a negative connotation to most Americans. Quite the contrary, Wal-Mart is a global leader in offering low cost merchandise, a variety of items to choose from, a clean environment in which to shop. Additionally, they are one the largest employers in America, they are still a private corporation, whom stocks rank first and second place. They promote within and they offer training and advancement for their associates (Fishman, 2006).
These categories exist in various formats including supercenters, supermarkets, warehouse clubs, cash and carry, home improvement, specialty electronics, apparel stores, drug stores, convenience stores, and digital retail. Wal-Mart’s chief competitors consist of Target Corporation, Dollar General Corporation , Burlington Stores, Inc., BJ’s Wholesale Club, and Costco Wholesale Corporation. I chose Wal-Mart because they are simply an Industry leader. They provide a wide array of goods and services, and it doesn’t look like they’ll stop growing any time soon. The growth has been large, yet consistent in previous years.
First off, Walmart has transcended the idea of a monopoly. although economically it hasn't exactly been allowed to corner the market in "supermarkets' it more than out does its competitors with a GDP ranking higher than some countries. Walmart has a profound impact on the state of economics on a global level, and more importantly on a local level. As examined thoroughly is the tendecy for Walmart to drive local shops out of business in smaller towns, and essentially suck its noncorporate
The rivalry among existing competitors is high because there is a large number of domestic and international discount retails, internet based retails and magazine competing with Wal-Mart (Soni, 2015). Target, Kohl’s, Dollar group, Kroger, and Costco are some of the national chain competing with the company. For example, in 2015, Wal-Mart’s grocery sales slowdown compared to its rival Kroger, which sales rise to 5.3 %. Also, in 2015 Wal-Mart e-commerce sales rose 17%, while its rival Amazon’s sales rose 25%. Furthermore, Sam’s Club (Wal-Mart chain) and its rival Costco gets a lot of revenue by selling gas. In 2015 Sam’s Club reported a gas sale increase of 0.4% while its rival Costco reported a gas sale increase of 7% ( Wahba, 2015). Despite
The article begins with the anti Wal-Mart factions basic arguments against Wal-Mart. It states that Wal-Mart destroys jobs and defecates a communities character. It also states that
Aimee Rong Mr. Wisotsky March 4, 2015 Why consumers like Target more than Walmart Walmart is famous for its cheap prices, convenient all-in-one superstores but notorious for its unethical employment policies, devastating impact on local communities and disastrous environmental impact. When asked whether one would rather shop at Walmart or Target, a rival competitor, many consumers confidently replied, “Target”, rather than Walmart. In the public scene, Walmart is seen as a negative force in a community while Target is seen as a positive and supporting force in the community. Given the difference in public opinion of the two rival companies, it is surprising that behind the cultural stigma, Walmart and Target both share a similar set
In the first part of our analysis, we give a brief introduction about Target Corporation and its main competitors, Costco and Wal-Mart, so that we can set some decision rules to allocate the resources.
The company selected for analysis was Target Inc. It was measured against the benchmark company, Walmart, its largest competitor. Both companies are in the discount retail industry, which is rapidly changing due to competition from Amazon. Walmart has been last, of the three, to engage in online selling (Kline, 2017). Walmart, the world’s largest retailer, benefits from economies of scale and market power over its suppliers and competitors operating 6,363 retail stores in 27 countries outside of the US (Jurevicius, 2017).
Wal-Mart’s sheer size gives it unrestrained economic power which allows it to drive down costs in the retail and manufacturing sectors and to enact its own standards with regards to its work force.
When you talk about Wal-Mart the first thing that you have to remember is that they are the largest retailer in the world. Wal-Mart employs more people in the United States than any other company and is second only to the federal government in the number of employees that they have on the payroll. These are important facts to consider in that due to their tremendous size, Wal-Mart has an enormous
Wal-Mart was founded by businessman Sam Walton in 1962 as a small retail store in Arkansas, USA. From there it has grown to become the largest retail giant in the world. Ranked by Forbes 2000 list for 2011 as the 18th largest public corporation in the world, Wal-Mart is the highest revenue generating public entity in the world as of 31st January 2011, with gross revenue of 422 billion US Dollars (Walmart Annual Report, 2011). It is also noted for being the largest private employer in the world having just over 2 million employees serving in 8500 stores, in 15 different countries, under 55 different names, worldwide. (Daniel, 2010)