This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Wal-Mart May Be the One Stock You Should Buy and Hold

Stocks in this article: WMT

NEW YORK ( TheStreet) -- Wal-Mart Stores (WMT) continues be listed on the model portfolios of most of the major brokerage firms, and there is a good reason why.

The company has had an unbroken string of revenue and earnings increases and is one of the most predictable stocks in which you can invest.

Investors appreciate that this company controls costs through thick and thin. In the past year, shares of Wal-Mart have soared 37%, while the market, as measured by the Value Line Index, is up 10%. The chart below from Barchart says it all.

Wal-Mart Stores operates stores under the Walmart and Sam's Club brands as well as the as and e-commerce Web sites. Wal-Mart Stores also operates banks that focus on consumer lending.

Factors to Consider

Technical indicators provided by Barchart

A recent price weakness can signal a buying opportunity for those who have been sitting on the sidelines or want to add to their positions in stocks that are fundamentally sound.

The weak 16% Barchart technical buy signal and a Trend Spotter sell signal could be what you've been waiting for. Although the stock is trading below its 20-day moving average, it is still above its 50- and 100-day moving averages.

The stock fell 2.6% in the last month but was up 10.51% for the quarter and has increased by 36.5% in the past year. The Relative Strength Index is still above 50% at 50.63%, and Barchart computes a technical support level at $71.88. The stock recently traded at $72.62 with a 50-day moving average of $72.50

Fundamental Factors

The 20 Wall Street brokerage firms that follow the stock have assigned 29 analysts to make recommendations. They project revenue will increase again this year by a rate of 5.70% and another 5.00% next year.

Earnings are estimated to increase by 9.6% this year, an additional 8.9% next year and continue to increase annually by 8.4% for at least five years.

The price-to-earnings ratio of 15.4 is marginally higher than the market P/E ratio of 15.0. The dividend of 2.20%, which is about one-third of estimated earnings, is right near the market dividend rate of 2.3%. The balance sheet is solid and receives an A++ financial strength rating. Wal-Mart continues to control costs and growth and looks to keep on track building new and smaller Wal-Mart Expresses.

1 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs