Walmart shares are up more than 80% in the last year despite single-digit revenue and earnings growth. Time to take gains on the World’s Largest Retailer?
I’ve been long shares of Walmart for the last 5 years. First the good news:
WMT is at all-time highs, having just ripped through Big Round Number resistance at $100 and forming one of those giddily unsustainable Upward to the Right charts you don’t see much in 65 year old retailers growing revenue at a single-digit rate.
Which is related to the bad-news. Walmart has rarely, if ever been this expensive by almost any measure. In the last 5 years Walmart shares are up 162%. In that same time frame revenue is up 26% and operating income has grown 22%. The latter numbers are surprising if not shockingly anemic.
