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Wal-Mart Stores (NYSE: WMT) is the world's largest retailer, offering a vast array of general merchandise through some 7,350 stores. That total includes nearly 1,000 discount stores, over 2,800 combination discount and grocery stores and about 600 warehouse outlets. More than half of Wal-Mart's facilities are in the United States, but the firm has a widespread and growing international presence. It is the biggest retailer in Canada and Mexico, has a 95% stake in Japan's Seiyu and has developing operations in Europe, South America and Asia. The company employs more than two million associates and serves more than 200 million customers per year. Costco Wholesale (NASDAQ: COST) and Target Corporation (NYSE: TGT) are competitors.
The stock has been a steady Q2 gainer, advancing on word of solid Q1 results, better than expected same-store sales figures, an expanding discount drug program, international development, and favorable analyst commentary.
The news
has kept WMT shares cycling through a positive three-month trading channel. The price is currently consolidating at the base of that channel, where oversold CCI, MACD and Stochastic technical parameters suggest the potential for a rise back toward the top.
Brokers recommend the issue with eight "strong buys", eleven "buys", five "holds" and one "underperform". Analysts expect a 12% average annual growth rate, through the next five years. The WMT P/E ratio (17.77), Price to Sales ratio (0.59), Return on Assets (8.37%), Return on Investment (13.31%) and Return on Equity (21.24%) compare favorably with industry, sector and S&P 500 averages. Institutions hold about 40% of the outstanding shares. The stock is one of those used to calculate the Dow Jones Industrial Average, the Dow Jones Composite, the S&P 500 Index and the S&P 100 Index. Over the past 52 weeks, it has traded between $42.09 and $59.95. A stop-loss of $49.75 looks good here. Note that the firm is expected to report fiscal Q2 results in mid-August.
Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com. He does not hold positions in any of the stocks mentioned above.
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Reader Comments (Page 1 of 1)
7-04-2008 @ 7:41AM
charlie mebane said...
my name is charlie mebane.iam 50 i have work hard all my life.i have a disable wife and son who is vary sick.my wife and son gos to chapalhill hosipal 2/to3 time month.my wifeget a disabilty check a month.my wife and son has a lots of problems.my wife has gone thorouht hell all her life.my wife wrote a book call god i have cry my last cry.we can not promote the book we don't have the money.my wife has a oline business.mebanescompany.com/mebanesproductcompany.com walmart help us