Wal-Mart grows in financial services

Article Excerpt

WAL-MART STORES INC. $78 (New York symbol WMT; Conservative Growth Portfolio: Consumer sector; Shares outstanding: 3.2 billion; Market cap: $249.6 billion; Price-to-sales ratio: 0.5; Dividend yield: 2.5%; TSINetwork Rating: Above Average; www.walmart.com) continues to expand into financial services. The retailer currently offers its shoppers cheque cashing, bill payment and tax-preparation services, as well as money orders and prepaid debit cards. The company has now teamed up with Ria Money Transfer, a subsidiary of Euronet Worldwide, to let shoppers transfer money. Using this service, called “Walmart-2-Walmart,” clients can move funds to and from over 4,000 of the company’s U.S. stores. Many of Wal-Mart’s clients do not have bank accounts, so this new service should help bring more of these customers into its stores. As well, the company’s rates are over 50% less than than what competing firms charge, which should help attract shoppers who don’t normally shop at Wal-Mart. Wal-Mart is a buy. buy…