Topic: How To Invest

Wall Street Stock Forecaster Hotline – Friday, October 7, 2016

Article Excerpt

WAL-MART STORES INC., $68.70, New York symbol WMT, is the world’s largest retailer, with 11,539 stores in 28 countries. The company plans to open fewer new stores in the next two years. Instead, it plans to spend more on renovating existing stores and expanding its e-commerce operations. Wal-Mart opened 471 stores in the fiscal year ended January 31, 2016. It now expects to open between 331 and 351 new locations in fiscal 2017 and between 249 to 279 in 2018. For fiscal 2017, the company still expects to earn between $4.15 and $4.35 a share. The stock trades at an attractive 16.2 times the midpoint of that range. Earnings in 2018 will likely be flat, but should rise about 5% in 2019. Wal-Mart has also increased its stake in Chinese online retailer JD.com, to 10.8% from 5.9%. The company has yet to reveal how much it paid, but this investment will help it profit from the rapid growth of online shopping in China. OUR RECOMMENDATION:…