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Bull’s Eye Report: Wal-Mart (WMT)

This retailer is ramping up for big move


At, we strive to “own the best and ignore the rest” in our equity portfolios. Toward this end, each day we search our database for a “top stock” (a top rated company in terms of earnings strength as well as company and industry performance) that presents a strong technical “set up” and a good entry point.

In short, when our equity team is looking to add a stock to one of our portfolios, the “bull’s eye” stock shown below is generally their first choice.

Company Symbol Industry

% Gain
Wal-Mart Stores Inc WMT Hypermarkets & Super Centers 7.1 -0.06% $68.00

Why We Like The Stock: 
Wal-Mart Stores NYSE:WMTis our most compelling buy today due to the fact that it is a top rated stock that has recently shown some positive technicals. Since its peak in mid-October, WMT has been in a firm downtrend. While it is never a good idea to try and catch a falling knife, it looks like WMT has based and is finally turning around. After developing the base around the $68 level during late-December and early-January, the stock has seeing some considerable upwards momentum this past week. WMT peaked above its 50-day moving average for the first time since November 1, 2011, and its 5- and 10-day moving averages are following closely behind. Should the stock continue its recent momentum, it has a short-term upside to $72 or +3.85% from the current price. With a no-brainer stop at $68, this trade’s risk/reward ratio is quite good, thus we think WMT is today’s most compelling buy.
We Would Be Buyers: At the current price (around $69.33), or on a pullback to $68.
Company Profile: Wal-Mart Stores, Inc. (Walmart) operates retail stores in various formats around globally. Everyday low prices (EDLP) is the Company’s pricing philosophy under, which it price items at a low price everyday. The Company’s operates in three business segments: the Walmart U.S. segment, the Walmart International segment, and the Sam’s Club segment. During the fiscal year ended January 31, 2012 (fiscal 2012), its Walmart U.S. segment accounted for approximately 60% of its net sales and operates retail stores in various formats in all 50 states in the United States and Puerto Rico, as well as Walmart’s online retail operations, Its Walmart International segment consists of retail operations in 26 countries. Its Sam’s Club segment consists of membership warehouse clubs operated in 47 states in the United States and Puerto Rico, as well as the segment’s online retail operations, During 2012, Sam’s Club accounted for approximately 12% of its net sales.
Stock Rating: The Stock Rating indicates the combined score of our proprietary Earning Strength and Company Performance models. The rating scale is 0 – 10 with 10 being the highest.Disclosure:At the time of publication the editor and affiliated companies own the following positions: NoneNote: Positions may be bought or sold while this publication is in circulation without notice.

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