I'm more interested just taking a look at the what the stock is doing in this market. The stock is becoming the antithesis of the "green shoots" trade, which is fine because we have enough stocks getting overvalued. Wal-Mart has seen its stock steadily fall while the market has rallied this summer. So basically, we can buy Wal-Mart shares as a hedge against the broad market falling, which could happen (as unlikely as it may seem to some), but at the same time, we're buying a stock with strong and improving fundamentals.
Wal-Mart always generates a lot of cash, and distributes it well through dividends (2.2% yield) and share buybacks (3.5 bil). I see some value here in their shares. Their shares are currently trading at 12.5x forward earnings, which are estimated to climb from 3.56 to 3.89. If the stock continues to fall while the broad market advances, I'll likely start a position.
As always, I'll post my trades here and via Twitter. You can follow my Twitter updates at www.twitter.com/briskycapital
Disclosure: No Position