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Wal-Mart Remains Poised To Outperform In Any Market

Summary

  • The recent devaluation of the yuan benefits Walmart because much of Walmart's inventories are bought from China.
  • The stock market decline will not affect Walmart's core base of consumers, and the decline in stock prices could even help Walmart.
  • Lower gasoline prices are imminent, which lowers Walmart's shipping costs, and allows consumers access to Walmart's stores more easily with more purchasing power.
  • Rising wages is being over reported and could be offset by increased sales to employees and other lower income consumers, and also by putting pressure on competitors.
  • Online eCommerce growth shows great promise should more than offset any declines in market share to dollar stores and online retailers.

Walmart (NYSE:WMT) has taken a beating this year, even before the recent market downturn. Down nearly 25% year to date, investors have seemed to have lost hope in Walmart continuing its growth going forward, along with Walmart falling victim to the recent market downturn on global growth fears.

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