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5 Worst Blue Chips to Own Before Earnings

Bad things are looming for these behemoths of Wall Street

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Walmart

walmart 5 Worst Blue Chips to Own Before EarningsWalmart (WMT) is the world’s biggest retailer, and certainly has scale and a degree of stability from that reach.

But stability is not growth — and if investors can get a comparable dividend elsewhere, why mess with Walmart before what is sure to be another bad earnings report?

In its May earnings report, Walmart U.S. saw same-store sales slip for the first time in almost two years — an uncomfortable reminder of the bleak run from 2009 to 2011 that featured an ugly streak of nine consecutive quarters of same-store sales declines.

WMT repeated that performance with an earnings miss in July and continued declines in same-store sales — and a lowered outlook to boot.

The stock has underperformed in 2013 with 6% returns year-to-date, including an 8% decline since that ugly August report.

Don’t expect a turnaround when WMT reports in November.


Article printed from InvestorPlace Media, http://investorplace.com/2013/10/5-worst-blue-chips-to-own-before-earnings/.

©2014 InvestorPlace Media, LLC

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