Wal-Mart Stores, Inc. Is A Screaming Buy

Wal-Mart Stores, Inc. (NYSE:WMT) has been plagued with poor stock performance over the last four months. A compilation of poor sales versus expectations and hiking their minimum wage has killed their stock price. Since its peak in January at $91.00, it has fallen to a recent low of $77.50. This is 15% drop in just four months.

This is all about to change. The stock is reversing today off a major support level shown in the chart below. In addition, with inevitable rising interest rates, the economy is likely to slow, if not slip into another recession within the next 12 months. This will push more people to shop at Wal-Mart and raise revenue. In addition, the hike in pay for employees, while a short term negative to earnings will likely increase the quality of worker. Less stealing, more productivity means more revenue per worker for each store. This combination gives Wal-Mart stores a no brainer buy with upside to $86.00 in the next six months.

Gareth Soloway
InTheMoneyStocks.com