This tech giant beat analysts’ estimates by $0.05 last quarter.
NCR Corporation (NCR)
From Sound Advice
NCR Corporation (NCR) makes automatic tellers (ATMs), retail point-of-sale (POS) workstations, self-service kiosks, and other self-service checkout systems. 485 million people use NCR products every day, and there is room for substantial growth in the US and around the world.
NCR owns nearly three-quarters of the burgeoning self-checkout market and is well-positioned to benefit. Using their smartphones, or a handheld scanner provided by the store, customers scan items from the shelves as they add them to their cart. At checkout, they input either device into the register, and it spits out the tally. Kroger is leading the race by rolling out its “Scan-Bag-Go” technology to over 400 stores this year. Walmart, which already has the technology in some stores is now testing the service in 120 more this year, and already has it in its 600 Sam’s Club stores. B.J.’s Wholesale Club has launched the service in a handful of stores and plans to add it to about 100 clubs this year.
This technology is driving the new Amazon Go store, which is bound to drive the entire supermarket industry to implement self-checkout technology. Amazon Go, Kroger, and Walmart are leading the cutting edge of grocery stores, but NCR is the power behind the trend.
NCR is an outstanding value, with a P/E currently below 12, which is a considerable discount to the rest of the market. With its new growth prospects, NCR deserves a much higher P/E. At a P/E ratio of, say 16, which is still a discount to the rest of the market, the stock belongs above $50 per share.
Gray Cardiff, Sound Advice, www.soundadvice-newsletter.com, 800-825-7007, April 2, 2018