Analyzing SIGA Technologies and Walmart Stocks: Investment Perspectives
Discuss the financial aspects and potential for investment, providing an analysis of stocks, particularly focusing on the stocks of SIGA Technologies and Walmart Inc.
Stocks are a reflection of the value of a firm, and investors place their money in the stock market with the hope of making a profit in the future. Through the shares owned by the stockholders, they are part owners of an organization. It is very difficult for individuals or mutual funds to outperform the market and ear excess profits from firms. In this regard, one must choose stocks in which to invest in carefully, considering the possibilities of return on equity (ROE), return on assets (ROA), among others before making the investment choice. Two stocks that one would consider are SIGA Technologies and Walmart Inc.; both for different reasons.
SIGA Technologies is an American pharmaceutical company founded in 1995 and traded in NASDAQ. It currently based in New York City and operates through marketing pharmaceutical solutions for anti-viral smallpox treatment. As at August 9, 2023, the stock price for the company’s share was US$5.77. It has a market value of about US$95.5 million [Forbes ]. Investing a million dollars in the company would see one acquire over 139,800 shares in the company, more than 1% of the company’s value. A huge number of shares become advantageous at the point of sharing out dividends, the persons with a high number of shares will always be receiving the highest amount of dividends. As a publicly traded company at NASDAQ, the process of acquiring shares is almost straightforward; when there is an available seller, one can buy them out.
SIGA Technologies is a developing company, one whose future can only be greater and bigger. The pharmaceutical industry keeps growing in leaps and bounds as scientists continue to invent better ways to deal with human illnesses and diseases. People are also keen to acquire better treatment services, making the place of businesses like SIGA Technologies almost guaranteed in the market. Therefore, despite the expected slow growth and return in these shares, they are likely to be stable in the market.
Walmart is one of the leading retailers across the world. The company had a fiscal year revenue of $573 billion [Walmart Inc., 2022 ]. This is a humongous company, whose share price at the New York Stock Exchange stood at US$160.65 on August 9, 2023. An investment of $1,000,000 would see one acquire about 6,970 shares in the company. In the most recent accounts of the company, the ROE was 15%. The earnings per share in 2021 were $4.75. An individual who owned shares at the company took home $2.24 per share in dividends. Therefore, with a 6970 shares, one would have earned US$15,612.3 in that year. The company shows resilient repayment of faith to investors through high earnings per share, and a considerably respectable rate of return on equity.
Beyond being a traditionally strong company, Walmart justifies why one should invest with them. As a retailer, this is a business that targets the mass market. It has maintained a household name status for years, and can only get better as long as it is not involved in image-damaging scandals in its operations. As long as Walmart retains a close relationship with consumers, it stands a chance of continued strengthening and its market position. Nevertheless, the business with all its influence and years of experience still falls within the effective market hypothesis. There is no way for it to make supernormal earnings at the expense of others in the market.
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