Ask a Fool: What Is Your Foolish Take on Wal-Mart?
In this video as part of The Motley Fool's "Ask a Fool" series, Fool consumer goods analyst Mark Reeth takes a question from a reader, who asks, "What's your Foolish take on Wal-Mart ? Why did the stock drop 2.5% last week?" Wal-Mart lowered guidance going into the holiday season and still hasn't released its holiday sales numbers, which has investors feeling pessimistic about its performance this year. The stock is also being dragged down at the moment by a number of short-term headlines: worker strikes, bribery scandals, and 2,300 Sam's Club employees being laid off.
But does the bad outweigh the good here? Mark doesn't think so. He still sees the largest retailer in the world as a cash-generating machine with a safe, reliable dividend, and thinks that if the holiday numbers do come in low and the stock takes a hit, it could be a great opportunity to buy a solid business on the cheap.
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The article Ask a Fool: What Is Your Foolish Take on Wal-Mart? originally appeared on Fool.com.Mark Reeth has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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