What’s your analysis of Wal-Mart (WMT) stock?
I was browsing and noticed that historically, Wal-Mart (WMT) displayed remarkable growth, and after 2000 when the economy started to decline, it stopped rising BUT maintained a steady price around $50.
It is one of the few companies out there who has managed to maintain its historically high stock price unlike a lot of companies who used to be at that level but now trade under $10.
Having said that, do you think Wal-Mart is overvalued and what do you predict its future trend to be?
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about 1 year ago
I Keep expecting Walmart to Go up and instead it just keeps hovering between 48-52. I have seen nothing but good news for the last month or so and its still not taking off
If anything they are under valued and like 95% of the stock market, it will be higher in a year from now then it is now
about 1 year ago
it is very hard to value a behemoth like WMT considering that the name carries a lot of clout and all of the different operations that they engage in. as such I can’t put a number value on it for you, however I can say this.
The company is truly massive, the largest in the world, unless I am mistaken; this allows it to under price everyone else. This means that it will do well in a recession/depression (more people want to buy cheaper stuff) and can destroy any competition that may arise. It also means that growth opportunities are restricted to Europe (doubtful that they can grow much here due to culture) and Asia. Also remember that if it does grow overseas that growth will be fairly small compared with its present operations.
So I would say that it will be a VERY slow gainer over the next 20 years or so and is exceptionally safe. If you want a safe 5% I would say pick it up. Otherwise leave it alone.
about 1 year ago
WMT is a discounter that does well in poor economic conditions. As the economic downturn abates, stocks like WMT loose their appeal. WMT had a good one year run from 9/07 to 9/08. Since then the overall trend has been downhill. But is still above it’s 05 – 07 trading range. If the economy continues to show signs of stabilizing, WMT (and like stocks) will not do well.
Over the long term, you probably won’t loose a lot of money investing in WMT. In the near term, I think the risk of more downside is high enough that I would wait for it to drop some more. But keep an eye on the economic news. If everything turns bad again, discounters will reap the rewards.
about 1 year ago
Company is solid, but I would wait for price to fall $48 before consideration for buying
about 1 year ago
WMT is the best retailer in USA.
about 1 year ago
I wouldn’t touch WMT- if their workers are allowed to unionize, it could cost the company dearly and the share price will fall. If it doesn’t happen I think of WMT as a safety stock in that it doesn’t have a lot of movement and you probably won’t stand to gain or lose a whole lot.