Stock Report: Walmart

We generally agree with the analysis; however, we think that the authors left out an important detail in their evaluation. It is true that Walmart has dominated among their competitors, that its market capital is significantly larger than its competitors, and that this is an incredibly successful business. However, over the past few months, it has lagged far behind the market averages, whereas Costco and Target have stayed relatively on-par with those averages. This suggests that growth is not the direction Walmart is headed toward, and that it would not make a good growth stock. It would, however make a good value stock because of its overall strength financially and large representation of its market. It also has higher earnings per share than its competitors. Walmart is being run efficiently by buying fewer and/or less expensive goods to sell and through efficient supply chain management. Industry projections expect Walmart to increase in value in the nearby future and that it is currently undervalued. It is a growing company, as shown through historical data and through its recent purchase of UK’s ASDA. This buy suggests that it will be expanding the functionality of its website, and it will be competing with such companies as Amazon.