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Recent Articles
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Walmart Raises Outlook for Fiscal 2026
Aug 21, 2025
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Image Source: Walmart.
Looking ahead, Walmart issued guidance for the third quarter, with net sales expected to increase 3.75%-4.75% and operating income to increase 3%-6%. For fiscal 2026, the company raised its outlook for net sales growth to the range of 3.75%-4.75% (was 3%-4%) and adjusted earnings per share in the range of $2.52-$2.62 (was $2.50-$2.60) versus the $2.62 consensus mark. Walmart’s guidance for adjusted operating income growth of 3.5%-5.5% remained unchanged. We liked the guidance revisions at Walmart, but we remain cautious on the tariff impact on its business given an unchanged adjusted operating income growth target, despite a better top-line view. The high end of our fair value range stands at $113 per share.
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Home Depot’s Comps Turn Positive in Second Quarter
Aug 19, 2025
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Image Source: TradingView.
At the end of the second quarter, Home Depot had $2.8 billion in cash and cash equivalents, while total debt stood at $52.3 billion. For the six months ended August 3, net cash provided by operating activities was $9 billion, down from $10.9 billion in the year-ago period. Looking to guidance for 2025, management expects total sales growth of approximately 2.8%, with comparable sales growth of roughly 1% for the comparable 52-week period. It expects to add approximately 13 new stores. Home Depot’s guidance for 2025 calls for a gross margin of 33.4%, with an adjusted operating margin of roughly 13.4%. Adjusted diluted earnings per share is expected to decline 2% from $15.24 in fiscal 2024. Though Home Depot’s second quarter wasn’t blockbuster, it was good to see comparable store sales inflect. Shares yield 2.3% at the time of this writing.
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Phillips 66’s 2027 Strategic Priorities Look Achievable
Aug 18, 2025
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Image Source: Phillips 66.
At the end of the quarter, Phillips 66 had $1.1 billion of cash and cash equivalents on the books and $3.7 billion of committed capacity available under credit facilities. The company ended the quarter with $20.9 billion in total debt, and a net debt-to-capital ratio of 41%. On the call, management noted that it was on track to achieve the $4.5 billion annual EBITDA target in Midstream by 2027. Also by that year, Phillips 66 expects to see its adjusted cost per barrel number below $5.50 per barrel on an annual basis. We like Phillips 66’s 2027 strategic priorities, especially in that it targets a “secure, competitive & growing dividend.” Shares yield 3.9% at the time of this writing.
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Cisco Systems Reports Strong Fiscal Fourth Quarter
Aug 17, 2025
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Image Source: TradingView.
For all of fiscal 2026, Cisco is targeting revenue in the range of $59-$60 billion, and non-GAAP earnings per share of $4.00-$4.06, in-line with consensus. Cisco ended the quarter with $16.1 billion of cash and investments on its books and $28.1 billion in short- and long-term debt. We continue to like Cisco and the momentum behind its AI Infrastructure orders. The company remains a holding in the newsletter portfolios. Shares yield 2.5% at the time of this writing.
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