June 19, 2015 Walmart update

Walmart is updated and rated Buy at $72.98. Its earnings per share have declined in the past two quarters due to the higher U.S. dollar (which reduces earnings from Canada and other international locations) and also due to increased wages and benefits. The decreases will cease as the company “laps” previous year quarters that also had the same impact. However in the case of the wage increases that lapping nay not occur for another nine months. In any case at a P/E of 14.7 with a dividend yield of 2.7%, Walmart is worth considering. The company has an extremely strong balance sheet and could easily undertake an international acquisition if it wished to move into additional countries. Meanwhile it is adding stores in most of the 27 countries in which it operates. Same-store sales growth has been modest but positive.

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