Wal-Mart Stores Inc. (NYSE:WMT) has long been a favorite of many of Wall Street’s most influential investors. If you believe in “whale watching” you may be interested to learn George Soros dumped about 50 percent of his position in Wal-Mart in the third quarter of 2012. On the other side of the coin, Warren Buffet maintained his 4.4 percent holding in the company, preserving Wal-Mart’s position in his top ten list.
All this occurred before the company’s November 15 earnings release that failed to impress investors and led to a 5 percent drop in the share price. Earnings showed a slight beat and revenue a slight miss, but it was the forecast that told the tale. This was bad timing for Wal-Mart as the Dow has dropped close to 1,000 points since the presidential election in anticipation of a cliff dive into yet another recessionary period. Given that fear amidst a wall of global worry, is WMT right now a BUY, a WAIT and SEE, or a STAY AWAY?
Let’s analyze the stock with the relevant sections of our CHEAT SHEET investing framework: