What's up with Wal-Mart
Yet there seems to be a light at the end of this tunnel. Wal-Mart looks cheap according to all sorts of metrics, and the company seems intent on solving the public image problems that dog it at every turn. What's more, the roster of Wal-Mart shareholders reads like a who's who of investing luminaries: Warren Buffett, Ron Muhlenkamp, Joel Greenblatt, Wally Weitz, and Bill Nygren.
It's got to be a "buy" now, right? Right?
Not so fast.
Well, not according to our Motley Fool CAPS investor database. Although our new community stock-picking system is still in beta testing, more than 350 investors have already weighed in on Wal-Mart's prospects. And while a solid majority are calling for the stock to outperform the S&P 500, it's garnered just a two-star (out of five) rating. Why? Simply put: A significant chunk of highly rated investors think this stock is going nowhere.
That's because Wal-Mart is relying on growth in China to be a catalyst. But what's there to be confident about? China is a fractious market, venerable American companies such as Anheuser-Busch
The other retail giant
The Foolish bottom line
Of course, maybe this CAPS thing is just a giant contrary indicator. After all, Mssrs. Buffett, Muhlenkamp, Greenblatt, Weitz, and Nygren aren't actively adding their thoughts to the system . that we know of . yet. But gentlemen, if you'd like to, just click right here to join the beta test of CAPS. The Wal-Mart page is here, and the Target page is here. Even if you're not one of these master investors but you have your own opinion on Wal-Mart, Target, or any other stock that you want to share, you're invited to join as well. Everyone's ratings help make the system smarter.
Tim Hanson does not own shares of any company mentioned in this article. You can find his rating in CAPS here, his dad's here, his wife's here, and his father-in-law's here. See? Everybody's joining CAPS! Wal-Mart and Anheuser-Busch are Inside Value recommendations. Starbucks is a Stock Advisor recommendation. The Motley Fool has a disclosure policy.