After moving through each stock on the Dow Jones Industrial Average (INDEX: ^DJI) and comparing analyst expectations with those of our own CAPS community, we can safely say that Wal-Mart (NYS: WMT) seems a bit overrated today. That's not to say it's a bad company, or even a bad holding in the long run, but after taking a look at its historic and expected growth rates, it seems that a recent flight to safety and a 20%-plus increase in its share price has caused expectations to get ahead of themselves.
What's most interesting is that the same analysts who have an outperform rating on Wal-Mart also have an average target share price that's below the current one. Wall Street sure is a crazy place. Realistically, there are better growth prospects to be had at these prices, and Austin recommends waiting for a bit of a pullback if you were thinking about adding a position in Wal-Mart today.
If there's one thing to like about the world's largest retailer, it's the company's track record of long-term dividend payments. Wal-Mart is a dividend aristocrat and has a strong reputation of rewarding committed shareholders.
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The article 1 Overrated Top Dow Stock originally appeared on Fool.com.
Austin Smith has no positions in the stocks mentioned above. The Motley Fool owns shares of Amazon.com. Motley Fool newsletter services recommend Amazon.com. Try any of our Foolish newsletter services free for 30 days. We Fools don't 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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