Is Wal-Mart a Good Portfolio Play?

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With shares of Wal-Mart (NYSE:WMT) trading around $77, is WMT an OUTPERFORM, WAIT AND SEE, or STAY AWAY? Let’s analyze the stock with the relevant sections of our CHEAT SHEET investing framework:

T = Trends for a Stock’s Movement

Wal-Mart operates retail stores in various formats around the world. The company aims to price items at the lowest price every day. Wal-Mart operates in three business segments: the Walmart U.S. segment, the Walmart international segment, and the Sam’s Club segment. It manages retail stores, restaurants, discount stores, supermarkets, super centers, hypermarkets, warehouse clubs, apparel stores, Sam’s Clubs, neighborhood markets, and other small formats, as well as Walmart.com and SamsClub.com. Through its retail channels, Wal-Mart is able to provide a variety of products and services at affordable prices to consumers and companies worldwide.

Foreign supermarket giants faced being shut out of the Indian capital Tuesday after Delhi’s new state government said it would not grant them a licence to operate.  Amit Yadav, the Delhi municipality’s industry commissioner, told AFP he had written to the federal government to indicate that foreign “multi-brand retailers” would not be given consent to open stores in the capital in a reversal of previous policy. Foreign retailers which only sell their own branded products, such as Britain’s Marks and Spencer, have long been able to operate in India. But reforms unveiled by Prime Minister Manmohan Singh in late 2012 should pave the way for the first foreign supermarkets to operate, provided 30 percent of their produce is sourced locally. Delhi had been expected to be one of the first places to welcome the likes of Walmart and Tesco under the reforms.

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