Overstock Executive Summary

Although the inflation rate was 3.6% we decide not to make any changes in the price and we kept it as what it was $5.29. In this period Ethik announced the introduction of End+ which was$ 5.69 but we still decided to keep our price for Allround+ $4.99 .The prices of Allround and Allround + should have been increased in correlation to inflation .Our stock price went down from $39.32 to $35.14 per share. We purchased sales force, advertising, promotion, channel sales and pricing reports to help us with our decisions in this period.

Google and Yahoo have a calculation of the P/E but both are different being $12.22 and $11.96 respectively at this current point in time. The main reason for the current difference in P/E is the discrepancy in earnings per share of $.10. To find historical P/E ratios for Target i have to do a google search and it brought up a site call YCharts. For the year of 2016 they do not give you an average but plotting a few point and finding an average I came up with about $12.84 for a ten year chart I would have had to sign up for a free trial but 2016 looked about average compared to pre 2014 when the stock was on a quick rise. Looking at a rough five year average of $17.97 the $11.92 is really low. In other words the current P/E is on the low side which may indicate a time to buy.

The purpose of this report is to evaluate the stock price of Wal-Mart Stores Inc. (which ticker symbol in NYSE is WMT) by fundamental analysis. According to this analysis, I recommend that Wal-Mart is worth to invest in the long term because of the potential growth of market shares and revenue. Besides, based on P/E method and Gordon model, WMT price is undervalued; therefore, if investors buy the stock, they will get benefit not only in capital gain but also in dividend cash inflow.

How long they have been listed on the stock exchange and changes in share price over time

Profitability and liquidity ratios are impressive and continue to reflect the company’s ability to succeed and compete with archrival and industry powerhouse Home Depot. The stock market ratios have fluctuated throughout the period analyzed, largely due in part to world events beyond management’s scope of control and the American public’s uncertainty in the market as a whole. All in all Lowe’s is forecasted to continue its growth and upward trend in all indicative areas and remain a power in the retail hardware, special orders and home improvement market, trespassing on territory once clearly dominated by Home Depot, the worlds largest hardware retailer. Lowe’s is a favorite amongst institutional investors as their holdings make up 80.80% of common stock issued.

The press and our customers have noticed the organizations excellent customer service. A article states, “24/7 Customer, a leading Customer Lifecycle Management (CLM) solution provider helped Overstock.com to the # 2 slot in Customer Service among all U.S. retailers. Overstock.com has been rewarded for its exemplary customer service and continued level of excellence. 24/7 Customer has been providing online and chat support to Overstock.com for over four years announced today that it has once again earned the #2 spot in customer service rankings among all U.S. retailers, according to rankings published in the 2010” (Business, 2010). In addition to excellent customer service, another way that they attract customers is by offering a shipping price of $2.95 per order no matter what is ordered. Another main aspect of marketing is search engine marketing. “Over the last several years, Overstock has been competing for traffic with search sites such as Google, forcing Overstock to spend large sums on search engine marketing” (Stock, 2010). They have continued to invest money on search engine marketing to ensure that new customers are able to find them.

Victoria’s Secret, the company that is the most famous manufacturer and marketer of women’s premium lingerie, womenswear and beauty products, and is famous for its models wearing angel wings, warned its investors. The stock is now down more than 25% so far this year and more than 40% over the past 12 months. One of the reasons for that is that Victoria’s Secret killed off its swimwear line last May. However, according to L Brands (retail company that owns Victoria’s Secret) words, the lack of swimwear contributed just to 6% of the overall drop this month. The bigger problem is Amazon. The Wall Street journal reported earlier this month that Amazon is planning on creating its own line of affordable

The test defines a cost leadership strategy as follows: a focus on gaining advantages by reducing its economic cost below all of its competitors . With this in mind, the cost advantages that Overstock holds over its competitors are numerous. However, the cost advantages that are most apparent are economies of scale, technological advances, and low cost production. Overstock is able to capitalize on these advantages by practicing economies of scale in order to lower the fixed cost per unit sold. They are able to achieve this by largely eliminating brick and motor stores and capitalizing on the online shopping trend. In 2013, Amy Roach Partridge authored an article on discount apparel

The chart indicates a strong support for the stock at 28 levels. In fact, last Friday, the stock failed in its attempt to break the support. Technically, the crossover of the MACD’s main line above the signal line also indicates increasing bullishness in the

Overstock.com is an American online retailer headquartered in Cottonwood, Utah. Dr. Patrick M. Byrne founded Overstock.com in 1999. In spring 1999, Dr. Byrne took over the company Deals.com. By October 1999 Dr. Byrne renamed Deals.com to Overstock.com. In December 1999 Overstock.com reaches $1 million in sales and ended that year at $1.8 million in revenue. Dr. Byrne started Overstock.com because he realized that it was an open market for liquidated inventory through the Internet. Dr. Byrne knew the potential of buying inventory through the internet would be a big deal especially since technology have improved. Overstock.com mission is to be the first company to sell excess inventory through the Internet. Overstock.com revenue has grown from $1.8 million in 1999 to nearly $1.3 billion in 2013. (Overstock.com)

Overstock is among the leading online marketplaces founded in 1999 where you can get high-quality products at discounted prices throughout the year. The store specializes in electronics, furniture, stylish shoes, sunglasses, apparel, home décor, pet supplies and many other essential items. If you use our overstock coupon codes, you will save massively and enjoy hundreds of offers every day.

Despite insider buying, recent poor performance has kept the stock price at a very low level; an examination of valuation multiples and a DCF analysis imply a 50-70% upside.

With the increase in online shopping, retailers have stereotyped the women that indeed are "stay-at-home moms" as women that can not afford to take the time out of their busy days to run to the mall or similar places. They have decided to target these women as their prominent customer base by launching ads and tag lines that seem to center around "the mom that stays home and takes care of the family" and emphasizing the convience of online shopping. The online retail site www.Overstock.com has presented many of its advertisement ventures as being attractive or desirable to women through showcasing their many stereotypically feminine products including jewelry, designer cloths and more via one of their commercials which includes an attractive women dressed in all white, walking through an outdoor mall, window shopping the many deals available at the online outlet store at "lower than wholesale prices". Many of the online stores today are attempting to sell not only their goods, but a sense of convenience and security. With the many credit card scams that have appeared in the media, these advertisers have acknowledged the publics fear and have responded with a multitude of online security software and secure and convenient options to ease the publics worries about online shopping and the security of their identity and purchases. The

What better way to determine where a company stands in a market than to use metrics. “The company recorded revenues of $40,339 million during the financial year ended January 2015 (FY2015), a decrease of 0.7% compared to FY2014.The operating profit of the company was $1,450 million in FY2015, an increase of 26.7% over FY2014.The net profit of the company was $1,233 million in FY2015, compared to $532 million in FY2014. Canada accounted for 10% of the total revenues in FY2015. Revenues from Canada reached $4,047 million in FY2015, a decrease of 10.5% compared to FY2014 (Best Buy Co., Inc., 2016, p.3).” Continuing operations in the US, the District of Columbia, Puerto Rico, as well as in all the Canadian provinces. Also, they operate in China and Mexico. They enjoy a glowing reputation and solid brand image. Best Buy ranked among the top 100 of America 's largest corporations regarding revenues in 2015. Additionally, they ranked among top 50 retail brands in the US by an industry source specializing in brand services and activities. The company has an impeccable track record in the US and continues to prove to be one of the very few players who has successfully sidestepped recession (Best Buy Co., Inc., 2016).

From the Figure 1, we can see before October 2015 the stock of JWN is stable increasing. However, during the recent half year, the stock price drops dramatically. In past four years, Nordstrom had good performance in its revenue. Even though it had slow sales growth in the past, the earning financial reports reflected the stable increasing stock price.