Wal-Mart Stores, Inc. (WMT) Is Reaching New Heights

Despite Target Corporation (NYSE:TGT)’s new initiatives, earnings left much to be desired. The company reported earnings of $0.77 per share, compared to analyst expecting $.87 per share, which was a big miss. Revenue came in low as well at $16.6 billion, versus expectations of $16.82 billion. The company still believes it has future growth, and believes it will have a turnaround in the coming quarters. One thing that will help long term investors is the fact that Target Corporation (NYSE:TGT) expects to open 125 stores in Canada. These store openings will provide huge amounts of future growth.

Another competitor to Wal-Mart Stores, Inc. (NYSE:WMT) is Macy’s, Inc. (NYSE:M). Macy’s was a little more wiser than its competitors because it adapted the Wal-Mart strategy in pricing. Macy’s decided that it too will add everyday low prices, so that it may improve its revenue growth. Thus far it has worked, and Macy’s, Inc. (NYSE:M) has made a huge turnaround the last 15 months since it started its new initiatives.

Macy’s, Inc. (NYSE:M) earnings for the first quarter came in at $0.55 per share on revenue of $6.38 billion, versus analysts expectations of $0.53 per share on revenue of $6.4 billion. The company seems to have slightly come below revenue, and the company stated this was because cool spring weather shifted into April. This cool weather, as the company claims, brought down their revenue for the quarter.

Final Thought

Wal-Mart has continued to climb higher as the stock market has risen. There is no doubt that the company still faces many economic challenges. This company is in the best position to handle the current economy because of its lower prices compared to other competitors. Long term investors should seek to add Wal-Mart Stores, Inc. (NYSE:WMT) into their portfolios. The company still has growth in the United States, but most importantly it is expanding internationally as well. One key takeaway is that investors should also compare the retail stock they own, and how it fares compared to all other competitors.

Terry Chrisomalis has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

The article Wal-Mart Is Reaching New Heights originally appeared on Fool.com.

Terry is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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