Stock Analysis: Walmart (WMT)

Walmart is in my Roth IRA and I plan on increasing the weight of this stock within my portfolio due to the strong historical performance, beta, dividend yield, and fundamentals. This stock passes the 5-Component Theory with flying colors. This retailer has locations internationally and is a recession proof stock. My intuition says Walmart will be around for a while as it operates internationally and has a large presence as an e-commerce retailer with a growing net income. I bought in to this stock during the March 2020 market crash and it has soared ever since. The market has since become overvalued.

5-Component Theory

Historical Performance: Strong

Dividend Yield: 1.46%

Beta: 0.44

Fundamentals: Fair

Intuition: A Buy

Walmart is the world’s largest retailer, operating retail stores under the formats of Walmart Stores, Supercenters, Neighborhood Markets and Sam’s Club locations in the United States as well as a growing e-commerce business (including Jet.com). Internationally Wal-Mart also operates locations in several countries, including Argentina, Brazil, Canada, China, Japan, Mexico, and the United Kingdom.

Company Description
12/8/2020

Michael’s Rating: A Buy, solid net income and beta less volatile than the index benchmarks. A growth stock poised for quarterly growth.

Best Regards,

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