Wal-Mart Stores Inc. $57 - New York symbol WMT

WAL-MART STORES INC. $57 (New York symbol WMT; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 4.0 billion; Market cap: $228.0 billion; WSSF Rating: Above average) is the world’s largest retailer, with over 7,200 stores. About 55% of its stores are in the United States. The company has had trouble winning approval to expand in certain urban areas. Consequently, it will probably open just 140 new stores in the U.S. this year compared with 191 in the previous fiscal year. Instead, Wal-Mart will focus on expanding its international operations, particularly in fast-growing markets such as China, India and Brazil. Wal-Mart’s low prices continue to attract customers away from other retailers. In its first fiscal quarter ended April 30, 2008, sales rose 10.3% to a record $95.3 billion from $86.4 billion a year earlier, thanks partly to a 22% jump in sales at its international stores. In the U.S., same-store sales, excluding gas stations, grew 2.9%. Earnings per share rose 11.8%, to $0.76 from $0.68. The stock trades at 16.4 times the $3.48 a share it should earn in the current fiscal year, and at 0.6 times its sales of $96 a share. The $0.95 dividend yields 1.7%. Wal-Mart is a buy.