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Wal-Mart dipped below our target price of $45/share today after the company downgraded its earnings forecast (PDF). While Wal-Mart faces many near term challenges, as many U.S. retailers do, longer-term the company should continue to grow its international businesses at an impressive rate. Furthermore, the company could gain an even greater share of the domestic market when the next U.S. recession arrives. Longer-term Wal-Mart could be an attractive company to start accumulating around current prices.
With that said, after significant debate we are not selecting WMT shares for the Wish List today; concluding instead that existing cash and dollar cost averaging opportunities are a better use for capital at this time.
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