First off, thank you to all our club members who joined our September Members-Only Call earlier Thursday! We hope you found our conversation valuable!
For those members of the club who were unable to attend, as a reminder, a full replay of the call will be available shortly and an edited transcript of the call will be posted in the coming days. The replay currently can be found on our homepage, and it will later live on the "Video" tab on the website.
We also want to post some "housekeeping" items. Please note that we have uploaded the latest versions of our Investment Indices. The Investment Indices can be accessed via the "Investment Indices" tab on the left hand side of the homepage (see here).
Also, we are making a few changes to the bullpen, taking one name out and adding two stocks in. As we said on the call, we have lost confidence in Micron's ( MU) ability to maintain margins. The threat of additional memory, Micron's chief product that acts like a commodity, coming to market has decreased expectations of Micron's future pricing power. We still think the demand for memory is far greater than previous cycles, but the rush of supply to the market will lower prices and takes down margins. Because of this expected trend, we are removing Micron from the bullpen.
We will replace Micron with Cisco ( CSCO) , a company that consumers so much memory that a drop in the commodity's price will shift a headwind on margins to a tailwind. We held this name not too long ago and made good money on our position, but ultimately, we exited our position in this network and enterprise security company to lock in gains and raise cash due to our subdued expectations in the company's transition from a networking hardware company to a more diversified software company timeline.
Well, the company delivered the quarter we've been waiting for last time out. 32% of total revenue was recurring, 56% of software revenue was from subscriptions, the company utilized its cash war chest and bought back stock, and to top it off all, management delivered strong guidance. Cisco is one of the few companies out there with a market cap greater than $200 billion and has accelerating revenue growth.
In addition to our Cisco add, we mentioned on our call that Walmart ( WMT) , a consumer discretionary with consumer staple-like qualities, has gotten very attractive. After a slow spring and summer months for the stock, shares vaulted back to the $90s when management delivered a strong quarter that eased concerns about a slowdown in ecommerce sales. We think the recent success should continue too, especially because represents a differentiated play in the US online sales market, and the recent acquisition of Flipkart represents a play on the rise of ecommerce in India. And let's not forget, management raised its net sales guidance, comp sales guidance, and adjusted earnings per share outlook on the recent quarter. A stronger consumer is helping drive those numbers.
With the stock shaking its slowdown narrative, we think its multiple should fit somewhere between that of Home Depot ( HD) and Costco ( COST) . Wal-Mart doesn't have the same exposure to housing, which the market dislikes, like that of Hone Depot, but it also has not built the same subscription-based model as that of Costco. Applying an earnings multiple at the middle of those two means gains for WMT.
Lastly, during the call we mentioned's upcoming Invest Like the Pros: Boot Camp for Investors event, which will be held at Convene in New York City on Saturday October 13th. The event is focused on trading with something for everyone - FANG stocks, retirement/income investing, general market overview, trading strategies for the fall - and the hottest industry at the moment, cannabis. It's a must go for those interested in learning about the cannabis industry and their stocks.
For more information on how to attend, please see here (