Wal-Mart Stores, Inc. (WMT) is Still The King Of Retail: Costco Wholesale Corporation (COST), Target Corporation (TGT)

Page 1 of 2

Over the years, Wal-Mart Stores, Inc. (NYSE:WMT) has introduced several innovative strategies that have helped it improve its share in the global market while also enabling it the leverage to penetrate into emerging markets. In terms of invested capital, Wal-Mart is a huge business with a total market capitalization of more than $245 billion and average trading volume of more than 9 million. The stock’s performance in the recent few weeks has been impressive, showing steady upward trend in the midst of improving investor sentiment and a bright economic outlook.

Wal-Mart Stores, Inc. (NYSE:WMT)Dividend and valuation

Wal-Mart Stores, Inc. (NYSE:WMT) has also announced an impressive hike of 18% in its dividend — one of the largest increases in its history. This has reaffirmed shareholders’ confidence in the positive and promising performance of the business. The stock has traditionally enjoyed a good dividend history, with a yield of 2.6% that exceeds industry standards. Moreover, the stock has an impressive forward looking price to earnings ratio of 12.5 and pays its investors $0.47 in dividends on earnings per share $5.02. There has been an almost 100% increase in dividend per share since 2009.

There are, however, specific developments that can jeopardize the stock’s recent upward movement. Anxiety over slowing growth rate in China and renewed signs of Europe’s economic weakness are two major developments that may determine the stock’s performance in the current fiscal year. Nevertheless, Wal-Mart Stores, Inc. (NYSE:WMT) has demonstrated incredible resilience against negative market forces and its stock has posted an impressive performance. This has mostly been the result of the stock’s defensive beta of less than 0.4 which means that it enjoys a wide competitive advantage over its major competitors.

Traditional rivals

Costco Wholesale Corporation (NASDAQ:COST) is the biggest competitor of Wal-Mart Stores, Inc. (NYSE:WMT), with an enormous market capitalization of almost $46 billion and trading volume of more than 2.1 million. Costco Wholesale Corporation (NASDAQ:COST)’s performance in the previous fiscal quarter was extraordinary. Sales rose 8% and the company reported EPS of $1.1, which was more than what the sell-side was looking for this time around. The business has registered healthy growth so far in the current fiscal year, with an increase of 6% in US sales, while international sales increased by 5%.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

10 High Margin Food Products to Build a Business Around

The 10 Most Expensive Clothing Stores in the United States to Get Decked Out At

The 5 Biggest Kickstarter Scams That Swindled Backers’ Donations

The 10 Most Expensive Boarding Schools In the World

50 Crazy Facts About Japan You Won’t Believe

Top 10 Least Expensive Hybrid Cars to Save the Planet With

The 10 Biggest ‘Gate’ Controversies in History

The 10 States with the Highest Nursing Shortages Leaving Their Hospitals Depleted

The 10 Best Value Investment Blogs that Every Investor Must Read

The 6 Cheapest Boarding Schools in Europe 2015

The 5 Most Expensive Cars To Insure in the World

The 10 Most Common Genetically Modified Foods

10 Self-Made Billionaires Who Came From Nothing

The 10 Most Expensive Cities to Live in North America

The 13 Most Expensive Headphones in the World to Represent

The Top 20 Wealthiest Soccer Teams in 2014

4 BuzzWorthy Cannabis Stocks And Some Smoking Derivative Plays

The 10 Healthiest Fast Food Chains in America to Dine At

The 5 Most Expensive Cat Food Brands You Can Spoil Your Kitty With

The 6 Best eCommerce Platforms for Small Businesses

The 10 Worst Mistakes an Entrepreneur Can Make

The 5 Most OP Characters in League of Legends to Carry Games and Crush Foes With

The 5 Best Foods to Eat Before Running that Will Help You Pound the Pavement

10 Glaring Plot Holes in The Walking Dead that a Zombie-Filled Bus Could Drive Through

The 5 Biggest Celebrity Stoners Who Love Their Reefer

The 10 Most Overrated Movies Of All Time by Out-of-Touch Critics

Top 6 Least Expensive Cruise Destinations For 2015 that Will Take You to Paradise

10 States with Lowest Substance Abuse Rates in America

The 14 Most Watched TV Finales Ever

The 10 Best Selling Role Playing Games of All Time for PC

10 Most Influential Papers In Economics

Top 8 Biggest Charities in the US

10 Worst Celebrity Career Moves Ever

Top 10 Best Paid Tennis Stars in the World

Top 6 Cities For The Ultra Rich to Live in Comfort

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

How to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

10 Best Places to Visit in Central and South America

The 10 Greatest Empires in History Which Nearly Conquered the World

The 6 Cheapest Boarding Schools In America 2015

5 Clear Reasons LoL is Better than DotA, Continues to Rule MOBAs

The Only 9 Teams with a Chance to Win the Super Bowl

The 15 Most Common Phobias in America that Induce Fits of Panic

Top 6 Least Expensive Tourist Destinations in 2014

Jim Goetz, Peter Fenton, Jim Breyer: Top 6 Venture Investors for 2014

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!