BloggingStocks http://www.bloggingstocks.com BloggingStocks http://www.blogsmithmedia.com/http://www.bloggingstocks.com/media/feedlogo.gif BloggingStocks http://www.bloggingstocks.com en-us Copyright 2012 Weblogs, Inc. The contents of this feed are available for non-commercial use only. Blogsmith http://www.blogsmith.com/<![CDATA[Wal-Mart gets downgraded while stock up in 2008 amid the turmoil]]>http://www.bloggingstocks.com/2008/10/08/wal-mart-gets-downgraded-while-stock-up-in-2008-amid-the-turmoil/http://www.bloggingstocks.com/2008/10/08/wal-mart-gets-downgraded-while-stock-up-in-2008-amid-the-turmoil/http://www.bloggingstocks.com/2008/10/08/wal-mart-gets-downgraded-while-stock-up-in-2008-amid-the-turmoil/#commentsFiled under: ,

Wal-Mart Stores, Inc. (NYSE: WMT) has not followed the trend of blue chip stocks that have seen 20% losses in the last few months along with the broad market. Indeed, WMT shares are up from just over $46 per share in January to over $56 per share today. WMT shares hit $63 just under a month ago, so yes -- they are down since September.

So, what's going on? Why were Wal-Mart shares downgraded this week? Sentiment from the downgrade states that Wal-Mart is most likely not immune from the continuing economic situation in the U.S. (and worldwide, of course).

Prices will continue to rise, unemployment may get worse and growth may stall (of wait -- those are all already happening). When this happens, what do consumers do? Why, they flock to Wal-Mart, of course. The haven of low prices becomes a hideout in turbulent economic times, and the stock market must agree after looking at WMT share price trajectory in 2008.

Will Wal-Mart weather the storm? To a point, it already is. Sure, all retailers are expected to have a dismal holiday season this winter, but Wal-Mart will do better than the competition. It has more stores, more pricing leverage and more wherewithal to hold customers hostage with lower prices and inventory turns at a time when it's needed most. Perhaps we'll see WMT return to the $60/share level by Thanksgiving -- if not sooner.

Wal-Mart gets downgraded while stock up in 2008 amid the turmoil originally appeared on BloggingStocks on Wed, 08 Oct 2008 15:25:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>Wal-MartWal-Mart downgradeWal-Mart StoresWal-martDowngradeWal-martStoreswmtWed, 08 Oct 2008 15:25:00 EST