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. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The 10 Best Countries To Work In the World

A Profitable Day At The Track: 5 Tips For Betting On Horses

Tearing You Apart: 6 Bad Habits That Ruin Relationships

Learning on the Job: The 6 Biggest Mistakes Parents Make

Shopaholics Rejoice: The 12 Biggest Malls in the World

Fright Night: 10 Horror Movies Based on True Stories

Mach Mania: The 10 Fastest Jets in the World

Military Heavyweights: The 10 Countries with the Most Tanks

All In: The 7 Richest Poker Players in the World

Abracadabra: The 10 Best Magicians in the World

The 10 Richest Asian Countries in the World in 2014

Eyes in the Sky: 10 Things You Need to Know About Drones

Rising Stars: The 6 Best Silicon Valley Startups

Military Muscle: The 5 Most Advanced Armies in South America

All that Glitters: The 7 Most Luxurious Jewelry Brands in the World

5 Things You Didn’t Know About ISIS but Should

Empowering Your Money: The 5 Best Energy Stocks to Invest In

The 11 Best Android Apps You Can’t Get on iOS

The 10 Most Important International Conflicts in 2014

Mood Enhancers: The 20 Most Uplifting Songs of all Time

Lover Beware: The 8 Countries that Cheat the Most

Breath of Fresh Air: The 25 Countries with the Best Air Quality on the Planet

Singles Beware: The 8 Worst Mistakes Made on First Dates

Healthy and Happy: The 10 Countries with Lowest Healthcare Costs

The 6 Best Company Team Building Activities to Build Workplace Camaraderie

Ships Ahoy: The 10 Busiest Shipping Ports in the World

10 Productivity Tips to Save You Time and Help You Do More With Less

Grab a Bite: The Most Popular Fast Food Restaurants in America

Friday Night Thirst: The 10 Most Popular Cocktails in the World

The 6 Greatest Unsolved Mysteries We May Never Figure Out

7 Useless Products You Never Should’ve Bought

The 5 Reasons Why You’re Single and Miserable

The 7 Most Addictive Foods in the World We Can’t Stop Eating (Even Though We Should)

5 Amazing Places You Can Swim with Dolphins

The Top 7 Most Livable Countries In The World

The 10 Most Expensive Baseball Cards Ever Pulled From A Pack

The 5 Easiest Second Languages to Learn for English Speakers

Silver Spoon: The 6 Richest Families in the World

The 20 Countries with the Largest Prison Populations in the World

The Top 10 Richest Actors in the World

The 10 Best Airline Stocks to Invest In Before They Fly Too High

Burger Kings: The 10 Most Expensive Burgers in the World

The 10 Most Ethnically Diverse Countries in the World

The 10 Most Exclusive Credit Cards in the World

The 10 Most Expensive Cruise Ships in the World

The 10 Fastest Supercomputers in the World

The 10 Best Countries for Doing Business 2015

6 Most Expensive Fruits In The World

10 Worst Airlines in the World

The 10 Biggest Tax Havens in the World to Stash Your Money

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!