Wal-Mart Stores Inc (WMT): Today's Featured Retail Winner

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model

Wal-Mart Stores ( WMT) pushed the Retail industry higher today making it today's featured retail winner. The industry as a whole closed the day up 0.8%. By the end of trading, Wal-Mart Stores rose $0.78 (1.0%) to $75.73 on average volume. Throughout the day, 6,614,352 shares of Wal-Mart Stores exchanged hands as compared to its average daily volume of 7,332,500 shares. The stock ranged in a price between $74.80-$75.88 after having opened the day at $74.97 as compared to the previous trading day's close of $74.95. Other companies within the Retail industry that increased today were: Acorn International ( ATV), up 11.1%, ALCO Stores ( ALCS), up 6.5%, QKL Stores ( QKLS), up 5.7% and New York & Company ( NWY), up 5.3%.
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Wal-Mart Stores, Inc. operates retail stores in various formats worldwide. The company operates in three segments: Walmart U.S., Walmart International, and Sam's Club. Wal-Mart Stores has a market cap of $245.3 billion and is part of the services sector. The company has a P/E ratio of 14.8, below the S&P 500 P/E ratio of 17.7. Shares are up 9.8% year to date as of the close of trading on Monday. Currently there are 11 analysts that rate Wal-Mart Stores a buy, no analysts rate it a sell, and 11 rate it a hold.

TheStreet Ratings rates Wal-Mart Stores as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, growth in earnings per share, increase in net income and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

On the negative front, Orchard Supply Hardware Class A ( OSH), down 18.0%, Liberty Interactive ( LINTB), down 3.1%, Cache ( CACH), down 2.9% and Natural Grocers by Vitamin Cottage ( NGVC), down 1.7% , were all laggards within the retail industry with Saks Incorporated ( SKS) being today's retail industry laggard.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the retail industry could consider SPDR S&P Retail ETF ( XRT) while those bearish on the retail industry could consider ProShares Ultra Sht Consumer Goods ( SZK).

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