Wal-Mart Stores Inc
) reached a 52-week high of $78.46 on Apr 9 and eventually closed
at $78.12. We note that the share price has been rising
consistently since Walmart reported solid fourth quarter fiscal
2013 results in late February this year.
Year-to-date, the company's share prices have recorded a
healthy return of 13.5%. The company's long-term estimated EPS
growth rate is 9.59%. Average volume of shares traded over the
last three months came in at approximately 7,106K.
Market Leading Position and Solid Fourth Quarter
Walmart's dominant position among the nation's largest grocery
retailers enables it to sustain growth in its top and bottom
lines, expand its store base and boost market share. Walmart's
price leadership, operational improvements, excellent merchandise
quality and customer service continues to boost traffic at its
stores. In addition, the company has a strong international
presence and an expanding e-commerce business. It also boasts
solid inventory management, prudent expense control measures,
strong free cash flow, healthy balance sheet and a sizable share
These measures helped the company post
stronger-than-anticipated fourth-quarter fiscal 2013 results. In
the fourth quarter, the company's revenues climbed 3.9% to $127.9
billion, driven by strong comparable store sales. Earnings of
$1.67 a share beat the Zacks Consensus Estimate by 6.4% and
surged 10.6% from the prior-year quarter on the back of top-line
growth, cost savings and a lower-than-expected effective tax rate
in the quarter. In fact, in the last 4 quarters, the company has
outpaced the Zacks Consensus Estimate by an average of 3.24%.
The company's productivity initiatives led to improvement in
Walmart's operating income. The company reduced operating
expenses by 14 basis points in fiscal 2013. Further, it expects
to reduce operating expenses by at least 100 basis points as per
its five year productivity initiative program which started in
Other Stocks to Consider
Walmart holds a Zacks Rank #3 (Hold). Other stocks in the
retail industry that are worth considering are
Companhia Brasileira de Distribuicao
The Kroger Co.
). While CBD and Safeway hold a Zacks Rank #1 (Strong Buy),
Kroger carries a Zacks Rank #2 (Buy).
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WAL-MART STORES (WMT): Free Stock Analysis
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