Wal-Mart Stores, Inc.is a three tiered corporation that markets a vast inventory of products to both the retail and wholesale markets. Wal-mart stores offer consumer products to meat every individual and household need: from vehicle tires to baby food, and pharmaceuticals and prescription drugs. The Sam's Club entity makes wholesale merchantdizing, financial services and small business solutions available to the population at large via a moderate membership fee. The International division operates stores and restaurants in a variety of locations worldwide.
Investment Impacts (help)
USA Country Analysis ► (edit / improve) The United States (US) has a highly productive, capitalist economy and is the largest and most diverse market in the world. Currency: the US dollar (USD) has the potential to increase in value especially versus the Australian and Canadian dollar because of the significant potential of undervalued companies. Investor Survey: the economic environment is very favorable for long term economic growth due to high scores on economic freedom and economic diversity. Trade: China, Japan, Mexico, and Canada are the top US trading partners, while the leading export and import are electrical machinery and vehicles, respectively. Commodity: The US produces a significant amount of coal and wheat for use at home and as an export. However, the US consumes a larger amount of oil, which contributes to their trade deficit. SWOT Analysis: The leading US strength is its entrepreneurial culture, while the main weakness is high health care cost. Energy independence has the opportunity to propel growth, while the major threat is the housing crisis, which will lower growth. Trading Strategy: An undervalued currency, high investment flow potential and favorable business environment lead to a positive outlook for US investments, which will also benefit from positive international actions.
Staple Industry Leader
Staples Industry Analysis ► (edit / improve) The consumer staple industry includes companies whose sales come from necessary consumer staple purchases such as rent, mortgage and food. Valuation: Based on WikiWealth's Wall Street analysis, this industry is a Hold, but with a ~ 30 percent potential. The Main Street analysis says a Buy with SWOT strengths much great than weaknesses and SWOT opportunities roughly the same as threats. Trade: Some of the main trade hubs include Argentina, Brazil, USA, Colombia, Greece, Italy, Turkey, and Indonesia, while the main staple commodities include chicken, corn, milk, oats, rice, sugar, wheat. Trading Strategy: The consumer staple industry tends to be less sensitive to economic cycles. Look for undervalued staple investments at any time in the business cycle when stock prices are low, and especially during the late stages of a bull markets when investors become more defensive. The global economy is currently in a recession, therefore, investors are rotating money out of consumer staples and into faster growth industries. Upward sloping stock charts and financial news may indicate a selling opportunity while the opposite means that stocks are becoming undervalued.
- Industry leaders often shape the political and economic conditions for their industry.
Industry Analysis evaluates the major industry characteristics that affect investments. Company specific factors drive the performance of individual companies, but macro-economic factors can affect the performance, stock prices, growth rates, and chart movements of any stock, currency, or commodity. All stock traders should review industry research before trading.
Warren Buffett Quote: "When a management with a reputation for brilliance tackles a business with a reputation for bad economics, it is the reputation of the business that remains intact." No matter the quality of your business, industry economics is an important factor in any value investing decision.
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Value Investing Importance?
A professional evaluations can cost between $150 to $15,000. In order to understand an investment, traders must research industry margins, stock prices, multiples, news, growth rates, stock chart, and any other relevant measurement to avoid mistakes.
Description: The consumer staple industry includes companies whose sales come from necessary consumer staple purchases such as rent, mortgage and food. Read More.
Profit Analysis: The best way to profit from consumer staple stock investments is to find the most undervalued investments (Wall Street and Main Street buy ratings) before economic recessions. Those investments should be undervalued (see Wall Street on left side), and have high Main Street Common Sense investment ratings (see Main Street on right side). When an economic recovery occurs, consumer staple stocks tend to underperform the general stock market, because consumers quickly resume spending on items they wanted, but resisted buying during tougher economic times. Consumer stables are generally items that consumers bought during a recession, but don't increase purchases during economic expansions. Eventually other stock investments become overvalued, because profits and stock prices increase past their fair values. During the last stages of an economic business cycle, just before a recession, it is best to buy staple stocks, because they are the least risky equity investments in a declining stock market. As investors search for safe (less risky) stock investments, they tend to buy consumer stables. Expensive (overvalued) stocks with low Main Street Common Sense ratings should be sold at any time to invest in better stocks. Two buys ratings are the best and two sell ratings are the worst possible stock investments.
Trading Strategy: Consumer staples tend to be less sensitive to economic changes. During economic recessions, consumers tend to decrease discretionary expenses to save money, but they can not decrease purchases of consumer staples, because they are needed for everyday living. Spending on consumer staples generally remains constant, so during economic recessions, investors tend to buy consumer staple stocks, which causes stock prices to increase. During economic recoveries, consumer staple stock prices generally underperform the general stock market. Investors who bought consumer stable stocks during the recession, tend to make new investments in faster growing industries. During longer economic expansions, consumer stables tend to growth at the same rate of the general stock market.
1 WikiWealth only uses the largest 30 companies in each industry for the basis of these financial measures. Each statistic is the market weighted average of the 30 companies.
2 Investment potential (margin of safety) is a weighted average of the discounted cash flow (DCF), the enterprise value (EV) market multiple, and the Warren Buffett investment methods.
What is a SWOT Analysis? The SWOT Analysis evaluates the strengths, weaknesses, opportunities, and threats involved in a business or project. The SWOT analysis is essential to understanding the many different risk and rewards of any investment. Add your content to the SWOT Analysis, below. Also see our SWOT Analysis Tutorial for help.
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Value Investing Importance?
The quality and quantify of SWOT statements has a direct impact on stock research ratings, and thus, company investments. A professional SWOT analysis cost a minimum of $150. WikiWealth's SWOT analysis is free and open to improve / edit.
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How does this work? The WACC Discount Rate (weighted average cost of capital) is used to determine business risk. WikiWealth uses an industry WACC analysis to increase stability and accuracy. Real time stock price and financial data equal real time WACC calculations. Click above to experimental and form your own investing conclusions (see tutorial & definition).
Value Investing Importance?
The result of this calculation is an essential input for the discounted cash flow (DCF) analysis. The real time stock price and interactive financial data create the world's only fully real-time WACC calculation. This method is widely used by investment professionals to determine the correct price for investments before they make value investing decisions.
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How does this work? The Discounted Cash Flow (DCF) investment analysis computes a value based on the present value of all future cash flows generated by the business. The DCF incorporates information from financial news and share data to stock price and growth rates. Click above to experimental. Form your own investing conclusions (see tutorial & definition).
Value Investing Importance?
This analysis is never given away freely, because it is expensive and complicated. Many investment professionals charge hundred of dollars just to see the results from this approach, but WikiWealth allows everyone to view and manipulate this analysis freely. This is one of the most important elements of WikiWealth's three Wall Street approaches used to determine the correct fair value of an investment for stock research purposes.
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How does this work? The Comparative Investment Analysis determines the value of a company by comparing their financial ratios, prices, growth rates, margins, etc. to those of relevant peer groups. Combine with news, charts and other stock research to form a complete. Click above to experimental and form your own investing conclusions (see tutorial & definition).
Value Investing Importance?
This method is widely used by investment professionals to determine the correct price of investments, especially initial public offerings (IPOs). It is one element of WikiWealth's three Wall Street approaches used to determine the correct fair value of an investment for stock research purposes.
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How does this work? The Warren Buffett Intrinsic Value Analysis, developed exclusively by WikiWealth, tries to mimic the value investing approach used by Warren Buffett, arguably the greatest value investor of all time. Click above to experimental and form your own investing conclusions (see tutorial & definition).
Value Investing Importance?
This method is unique and experimental, but extensive testing on over 3,200 companies confirms the results to be surprisingly accurate and consistent with more advanced approaches. If the greatest value investor of all time can consistently beat the stock market, then his methods are worth your attention. WikiWealth is the first and only company to utilize this value investing approach. Warren Buffett relies less on every day stock price, financial news, stock charts, trading tips, and price data. He focuses on fundamental value investment analysis as highlight below.
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