August 18, 2012
After moving through each stock on the Dow Jones Industrial Average (INDEX: ^DJI ) and comparing analyst expectations with those of our own CAPS community, we can safely say that Wal-Mart (NYSE: WMT ) seems a bit overrated today. That's not to say it's a bad company, or even a bad holding in the long run, but after taking a look at its historic and expected growth rates, it seems that a recent flight to safety and a 20%-plus increase in its share price has caused expectations to get ahead of themselves.
What's most interesting is that the same analysts who have an outperform rating on Wal-Mart also have an average target share price that's below the current one. Wall Street sure is a crazy place. Realistically, there are better growth prospects to be had at these prices, and Austin recommends waiting for a bit of a pullback if you were thinking about adding a position in Wal-Mart today.
If there's one thing to like about the world's largest retailer, it's the company's track record of long-term dividend payments. Wal-Mart is a dividend aristocrat and has a strong reputation of rewarding committed shareholders.
But there are actually better income opportunities on the Dow. You can read about The 3 Dow Stocks Dividend Investors Need today. The premium report is absolutely free, so just click here and get access to your copy today.