STOCK PICKS: Top 5 Large-Cap for Oct. 8

The company undertook several strategic development initiatives recently, such as announcing the planned relocation of its Fishers service center to Indianapolis in 2010 and the intent to add 200 jobs by 2013. The company also increased its active brokerage accounts 5% from the prior year's quarter, while retirement plan participants increased 13% and banking accounts more than doubled. However, the company is exposed to credit risks associated with its loans to banking clients held at Schwab Bank, and this risk could affect its future financial performance.

Wal-Mart Stores(WMT Quote) operates retail stores worldwide.

Our buy rating for Wal-Mart has been in place since February 2008. This rating is based on a variety of strengths, including the company's solid stock price performance, growth in earnings per share, increases in net income and revenue, and notable return on equity. Over the past year, the company's stock price has risen 47.11% as investors recognized these strengths. For the second quarter of fiscal 2009, Wal-Mart improved its EPS by 14.7% year over year.

Revenue growth of 10.5% appears to have contributed to the EPS increase. Net income also increased when compared to the same quarter a year ago, rising 16.8% from $2.95 billion to $3.35 billion. A slight improvement in return on equity can also be viewed as a modest strength for the company.

Management attributed record quarterly earnings and nearly $5 billion in free cash flow to solid operating performance and improved capital efficiency. Wal-Mart reported that it improved customer traffic and ticket and overall sales growth in all markets, and feels that it is well-positioned for the current economic environment despite inflation and higher fuel costs.