Where Will Walmart Stock Be in 5 Years?
The retailer's premium price tag rests almost entirely on a few small, fast-growing corners of the business.
Overview
Walmart (NASDAQ: WMT) has quietly become one of the market's strongest large-cap performers over the past few years, rewarding investors who had long underestimated it. Lately, though, the run has cooled. Yet even after slipping from a 52-week high near $135 to about $114 as of this writing, the stock still fetches about 40 times earnings -- a growth stock multiple for a retailer that rings up most of its sales on low-margin groceries.
That gap is the whole question for anyone buying today. Can a company this enormous grow into a price like that over the next five years? The answer sits in a surprisingly small corner of the business.
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Originally published at www.fool.com.