Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, retail behemoth Wal-Mart Stores
With that in mind, let's take a closer look at Wal-Mart's business and see what CAPS investors are saying about the stock right now.
Wal-Mart facts
Headquarters (Founded) | Bentonville, Ark. (1945) |
Market Cap | $194.3 billion |
Industry | Discount retail |
Trailing-12-Month Revenue | $431.87 billion |
Management |
CEO Michael Duke (since 2009) CFO Charles Holley (since 2010) |
Return on Equity (Average, Past 3 Years) | 22% |
Cash/Debt | $8.1 billion / $57.1 billion |
Dividend Yield | 2.6% |
Competitors |
Amazon.com
Target
Costco Wholesale |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 89% of the 7,047 members who have rated Wal-Mart believe the stock will outperform the S&P 500 going forward. These bulls include tbonci and TarynOne.
A few months ago, tbonci listed several of Wal-Mart's positives:
They have a high RoE, gobs of cash, a 7.9% earnings yield, and a low P/Sales and P/E. Looking toward future potential, Wal-Mart is seeking expansion into untapped developing markets. ... [M]anagement clearly has their eyes set on moving to the large global stage, which will only be good for shareholders.
In fact, Wal-Mart currently sports a cheapish forward P/E of 11.5. That represents a discount to fierce competitors Amazon (73.0), Target (12.4), and Costco (19.0).
CAPS member TarynOne elaborates on the bargain opportunity:
[Wal-Mart] is somewhat out of favor in the US as of late and same-store sales are slightly down. ...
I think the market, however, has its needle stuck on [Wal-Mart's] less-than-popular reputation in the US and is forgetting the fact that [Wal-Mart] has HUGE growth potential abroad (excluding Europe) in emerging market. [Wal-Mart] is just tapping the surface here and I think it will be a great long term bet.
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