Question

Suppose you had access to satellite footage of the exterior of every Walmart store for the last five years. How could you use this footage to construct a leading indicator that predicts whether to buy or sell Walmart stock?

Answer 1

Leading indicator that would predict whether to buy or sell Walmart stock
1. The number of footfalls in the walmart store. Higher the footfall higher the customers visiting the store and more will be the sales in the stores.Footfalls can be a leading indicator.Higher the footballs walmart stock should be bought and vice versa
2. Checking the inventory turnover can help. The replenishment rate of the inventory helps in identifying the inventory turnover. Higher the turnover more the amount of sales and higher will be the profits.The increasing frequency of truck and vans can helps in understanding and this can be a leading indicator.Higher the frequency of trucks one should buy the stock and lower the frequency of trucks one should not buy the stock.