Wal-Mart is down from its high this year on concerns about the entire retail industry. It has met expectations with earnings last quarter and will have strong earnings the rest of the year if in line with forecasts. I think Wal-Mart will beat those expectations this year though.
Wal-Mart will have very competitive pricing this Christmas and the American consumer will want to spend this Christmas season as incomes go up slightly and more people are employed. They can created themselves as a destination for the hottest tech gadget and with the lowest prices.
I'm also really interested in Wal-Mart's money services it offers customers. It has become a good bank for the customers banks normally overlook. Good prices on money orders and prepaid debit cards will put them ahead as people eschew traditional banks. They are also growing their organic produce which they are able to sell for a higher price and perhaps even attract more conscious consumers.
The company is also doing well in competing with Amazon on shipping goods to a consumer's house. I know a few people who just order it online from Wal-Mart and have it delivered to their door and these people do not always live in a big city.
Wal-Mart hasn't had to change but I believe that they are capable of change and quickly at times. They are attuned to what the American consumer wants and can provide it at the cheapest price. For these reasons they are included in the WML. Happy Trading.
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