Ask a Fool: What Is Your Foolish Take on Wal-Mart?

What was behind Wal-Mart's 2.5% pullback last week?

Mark Reeth
Mark Reeth
Jan 28, 2014 at 4:22PM
Consumer Goods

In this video as part of The Motley Fool's "Ask a Fool" series, Fool consumer goods analyst Mark Reeth takes a question from a reader, who asks, "What's your Foolish take onĀ Wal-Mart (NYSE:WMT)? Why did the stock drop 2.5% last week?" Wal-Mart lowered guidance going into the holiday season and still hasn't released its holiday sales numbers, which has investors feeling pessimistic about its performance this year. The stock is also being dragged down at the moment by a number of short-term headlines: worker strikes, bribery scandals, and 2,300 Sam's Club employees being laid off.

But does the bad outweigh the good here? Mark doesn't think so. He still sees the largest retailer in the world as a cash-generating machine with a safe, reliable dividend, and thinks that if the holiday numbers do come in low and the stock takes a hit, it could be a great opportunity to buy a solid business on the cheap.