Wal-Mart Future Stock Price Analysis

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Wal-Mart (WMT) is largest retailer is US and has significant market share in the international market. They are more focused into the future growth and in maintaining their current market position. Change in the economic condition and growing competition in the retail market, makes it challenging for the retail players in maintaining their market share and revenue growth as per their expectation. These factors are adding more pressure to the margins and revenue of the company. WMT’s expected growth in the earnings per share and dividend for the 4th quarter was not promising, there was only 2% increase in the dividends per share and EPS has slightly decreased (Seekingalpha.com, 2014).These factors have direct impact on the stock price of the company.

The fact is that the stock price of WMT after one year is expected to increase, besides other reasons, growth of the company is continuous and they are well positioned in the market. The stock price will definitely increase which is evident from the past stock price movement. By 2009 it was below $55 per share which rose to $75 during the 5 year period of time (Yahoo Finance, 2014). Volatility in the stock price is quite common, but WMT do not disclose for a great volatility in their stock price. The company stock price will not face a drastic increase in the future; increase in the stock price will be average.

From the past stock price movement it is clear that WMT stocks are less volatile, there is no sudden swing in the stock price. Increase or decrease in the stock price is being signaled and not drastic. The 5 year stock price graph from yahoo finance (Yahoo Finance, 2014). It is clear that the stock price is fluctuating mostly within the range of $75 from July 2013 till date....

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...eekingalpha.com/article/2067463-is-wal-marts-2-percent-dividend-increase-a-warning-to-investors

Steinberg, J. (2014, March 6). Wal-Mart Stores, Inc. (WMT) news: Wal-Mart: The Current Price Ignores Growth Opportunities - Seeking Alpha. Retrieved March 6, 2014, from http://seekingalpha.com/article/2070903-wal-mart-the-current-price-ignores-growth-opportunities

Utermohlen, K. (2014, January 31). WMT Stock - Walmart Stock Feels Weight of Winter Weather, Weak Outlook | InvestorPlace. Retrieved March 6, 2014, from http://investorplace.com/2014/01/wmt-stock-walmart/#.Uxi_rixWFMs

Yahoo Finance (2014). Wal-Mart Stores, Inc. Common St Stock Chart | WMT Interactive Chart - Yahoo! Finance. Retrieved March 6, 2014, from http://finance.yahoo.com/echarts?s=WMT+Interactive#symbol=wmt;range=5y;compare=;indicator=volume;charttype=area;crosshair=on;ohlcvalues=0;logscale=off;source=;

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