New Lifetime High Today: Wal-Mart Stores (WMT)

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified Wal-Mart Stores ( WMT) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Wal-Mart Stores as such a stock due to the following factors:

  • WMT has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $801.0 million.
  • WMT has traded 280,634 shares today.
  • WMT is trading at a new lifetime high.

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More details on WMT:

Wal-Mart Stores Inc. operates retail stores in various formats worldwide. The company operates through three segments: Walmart U.S., Walmart International, and Sam's Club. The stock currently has a dividend yield of 2.2%. WMT has a PE ratio of 17.8. Currently there are 9 analysts that rate Wal-Mart Stores a buy, 2 analysts rate it a sell, and 9 rate it a hold.

The average volume for Wal-Mart Stores has been 7.3 million shares per day over the past 30 days. Wal-Mart Stores has a market cap of $275.2 billion and is part of the services sector and retail industry. The stock has a beta of 0.17 and a short float of 2.4% with 3.80 days to cover. Shares are up 8% year-to-date as of the close of trading on Tuesday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Wal-Mart Stores as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, increase in stock price during the past year, growth in earnings per share and reasonable valuation levels. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:
  • WMT's revenue growth has slightly outpaced the industry average of 0.9%. Since the same quarter one year prior, revenues slightly increased by 2.9%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • Net operating cash flow has significantly increased by 72.54% to $3,570.00 million when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 49.72%.
  • The stock price has risen over the past year, but, despite its earnings growth and some other positive factors, it has underperformed the S&P 500 so far. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • WAL-MART STORES INC reported flat earnings per share in the most recent quarter. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, WAL-MART STORES INC reported lower earnings of $4.86 versus $5.01 in the prior year. This year, the market expects an improvement in earnings ($5.00 versus $4.86).

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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