Does Wal-Mart Support All-Time Highs?

E = Earnings Are Increasing Quarter-Over-Quarter

Rising stock prices are often strongly correlated with rising earnings and revenue growth rates. Also, the last four quarterly earnings announcement reactions help gauge investor sentiment on Wal-Mart’s stock. What do the last four quarterly earnings and revenue growth (Y-O-Y) figures for Wal-Mart look like and more importantly, how did the markets like these numbers?

2012 Q4

2012 Q3

2012 Q2

2012 Q1

Earnings Growth (Y-O-Y)

11.33%

12.5%

8.26%

12.37%

Revenue Growth (Y-O-Y)

3.86%

3.36%

4.51%

8.47%

Earnings Reaction

1.51%

-3.63%

-3.08%

4.2%

Wal-Mart has seen increasing earnings and revenue over the last four quarters. From these figures, the street has expected, at time, a little more from Wal-Mart but is happy with the most recent earnings announcement.

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P = Average Relative Performance Versus Peers and Sector

How has Wal-Mart stock done relative to its peers, Costco (NASDAQ:COST), Target (NYSE:TGT), Dollar Tree (NASDAQ:DLTR), and sector?

Wal-Mart

Costco

Target

Dollar Tree

Sector

Year-to-Date Return

12.54%

4.68%

16.97%

15.24%

12.49%

Year-to-date, Wal-Mart has been an average performer in a very strong sector.

Conclusion

Wal-Mart is a global retail giant that provides a wide range of low-priced products and services to a multitude of consumers and businesses around the world. The stock has seen a recent lift, in fact, it is currently trading at all-time highs from the support of investors who are pleased with the increasing earnings and revenue figures. Also, Wal-Mart has been an average performer in a strong retail sector. Look for Wal-Mart stock to continue to OUTPERFORM.

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