Wal-Mart Stores Inc Stock Buy Recommendation Reiterated (WMT)
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- Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 38.96% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, WMT should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- WAL-MART STORES INC has improved earnings per share by 8.3% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, WAL-MART STORES INC increased its bottom line by earning $4.55 versus $4.20 in the prior year. This year, the market expects an improvement in earnings ($4.92 versus $4.55).
- WMT's revenue growth trails the industry average of 14.7%. Since the same quarter one year prior, revenues slightly increased by 4.5%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Food & Staples Retailing industry and the overall market, WAL-MART STORES INC's return on equity exceeds that of both the industry average and the S&P 500.
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500, but is less than that of the Food & Staples Retailing industry average. The net income increased by 5.7% when compared to the same quarter one year prior, going from $3,801.00 million to $4,016.00 million.
--Written by a member of TheStreet Ratings Staff.
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