S&P has a 12 month target of $59 and rates this stock 5 stars. The Street Rates this stock “B” Buy. Ford Equity Research rates the stock a “Strong Buy.”
I believe this company is well positioned to gain market share worldwide because of the current economic environment. WMT’s strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, attractive valuation levels and good cash flow from operations. These strengths outweigh the current lackluster stock performance.
S&P projects EPS of $3.58 for FY 10, up 6.9% from $3.35 in FY 09.
Domestically, WMT hopes to increase comparable-store sales by focusing on expansion of its supercenter format.
Internationally, WMT growth be being fueled by acquisitions and joint ventures. Here is a summary of some of the larger financial deals.
In March 2009, WMT increased ownership to 75% from 58% in Distribucion y Servicio D&S S.A., operator of 197 stores, 10 shopping centers and 85 PRESTO financial service branches in Chile.
In December 2007, WMT acquired a 35% interest in BCL, an operator of 101 hypermarkets in China under the banner Trust-Mart.
In August 2007, the WMT established a joint venture with Bharti Enterprises, an Indian company, to establish a joint venture called BhartiWal-Mart Private Limited to conduct wholesale cash and carry and back end supply chain management operations in India.
In the wake of the current economic situation, consumer trends have shifted to a more cost-effective stores for goods and groceries. Walmart is well positioned for this trend. I now have 50% of my target investment in WMT with an average cost of $47.925.