Wal-Mart: Still a Great Way To Get Rich

Updated

In today's edition of "Talking Stocks," analyst Austin Smith looks at one company that recently received a big black eye from the press: Wal-Mart. Following difficulties operating outside of its core market and broad international weakness, Wal-Mart recently indicated it would be re-focusing on its more profitable, albeit lower-growth, domestic market.

Given Wal-Mart's saturation in the U.S., some investors are worried about whether the company can still reward shareholders. Austin thinks the company is actually very cheap right now and has a lot of potential to continue rewarding shareholders. With an incredible dividend, a track record of share repurchases, and a starkly lower P/E ratio than a decade ago, Wal-Mart still has all the necessary levers to pull to make investors rich.

Just because Wal-Mart seems to be backing away from high-growth emerging markets doesn't mean that every company is realizing the same difficulties. In fact, our analysts uncovered 3 American Companies Set to Dominate the World. They're three well-run, super-familiar companies that are bringing new life to their returns by going international. Click here to get your free copy of our analysts' report before it's gone.

At the time thisarticle was published Austin Smith owns shares of Unilever. The Motley Fool has no positions in the stocks mentioned above. Motley Fool newsletter services recommend The Procter & Gamble Company and Unilever. 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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