The following video is part of our "Motley Fool Conversations" series, in which industrials editor/analyst Isaac Pino discusses topics around the investing world.
In today's edition, Isaac argues that Wal-Mart's future as a global retail leader looks shaky. Over the past decade, its stock stagnated, whereas Amazon.com's shares have soared. For Amazon to overtake Wal-Mart as the world's largest retailer in non-grocery goods, the e-retailer would have to grow by 27% each year to 2017, well below its growth of recent years. But there are other issues plaguing Wal-Mart, including an evident indifference to shareholders that allowed the Mexico bribery scandal to escalate, the fact that rock-bottom prices from competitors threaten to steal less affluent consumers, and the reduced attractiveness of locations of one-stop-shops for Wal-Mart around the country. Watch the video to find out why Isaac made a negative CAPScall on Wal-Mart recently.
Wal-Mart's heyday could be long gone at this point, but there's another retailer on Isaac's radar that's poised for tremendous growth. The Motley Fool's top analysts are so enthusiastic about this hidden gem that they have deemed it "The Motley Fool's Top Stock for 2012." The free report highlights a soon-to-be rock star that's revolutionizing commerce in Latin America, and you can get instant access to the name of this company by clicking here to download it now.
Isaac Pino has no positions in the stocks mentioned above. The Motley Fool owns shares of Amazon.com, JPMorgan Chase, and Whole Foods Market. Motley Fool newsletter services recommend Amazon.com and Whole Foods Market. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.