This Is No Bargain
Wal-Mart (WMT) hit a new 12-year high of $66.66 intraday Thursday. That peak price represented 15x trailing earnings and about 13.6x the full-year estimate of $4.90 for the fiscal year ending Jan. 31, 2013. Wal-Mart shares are up 38% from their August 2011 low of $48.30. If you've held since, then you've also collected $1.13 in dividends for a nine-month total return of 40%.
Wal-Mart is now expected to see year-over-year profit growth of 10.1%. Last summer the company reported its eight straight quarter with same-store sales decreases. If you limited your purchase of retailing names to only those with increasing comps, you could not have bought Wal-Mart, even though it was at its cheapest valuation ever. The stock was selling for 10.9x that year's earnings per share and yielding an all-time high 3.02%....494 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
There’s no substitute for a trading floor to get great ideas, so Jim Cramer created a better one at Real Money and blogs there exclusively. We then added legendary hedge fund manager, Doug Kass, with his exclusive Daily Diary and best investing ideas. Staffed with more than 4 dozen investing pros, money managers, journalists and analysts, Real Money Pro gives you a flood of opinions, analysis and actionable trading advice found nowhere else, and allows you to interact directly with each expert.
Already a Subscriber? Please login.