I think WMT is very attractive here.
Grows earnings by 8-10% every year, solid buyback plan in place, great dividend growth, just a 15 P/E.
Pretty safe bet for 10%+ returns going forward.
I have a weird feeling that doesn't make me invest in retailers: their marker is imploding because of online businesses.
Walmart seems to have a strong on line presence. IMO brick and mortar combined with on line can give a company quite an advantage over a business that is all one or all the other. The name of the game now is to provide flexibility to the shopper such that shopping can take place at any location, including inside the brick and mortar. Walmart is still a bit behind in online development but I'm sure that their on line volume is increasing, and as that trend continues, so will their effort to provide a first class platform which gives customers access to many more merchandise selections than are on the shelves in the super stores. My guess is that Walmart and Amazon are the two super heavy weights when it comes to pricing power and efficient distribution systems. Because of this, I just don't see on line sales as much of a threat to Walmart.
Walmart has pulled back to $75.35 over the past few days. If you liked it at $77, you should love it at $75.
01-23-2014, 09:00 AM
(This post was last modified: 01-23-2014, 09:18 AM by hendi_alex.)
I don't have any data wrt online business for Walmart, just think that such is intuitive. Walmart has a very good on line site that carries a wide array of items most of which are not carried in stores. It just makes sense that as consumers expand on line shopping, Walmart would experience healthy growth there just like everyone else who has a decent online site. Site prices are competitive and they offer free shipping on orders over $50 and free store pick up for orders under $50. They also have free returns either to the store or via mail.