Before You Write Wal-Mart Stock’s Obituary

In the 1990s, no stock contributed more to the earnings per share growth rate of the S&P 500 than Wal-Mart stock. It had been an elevator upward delivering 16% annual earnings per share growth throughout the decade, fresh on the heels of delivering 31.5% annual growth between 1972 and 1990. From 2000 through 2012, the party continued, as Wal-Mart grew earnings per share from $1.40 per share in 2000 to $5.02 in 2012. Although the best gains came to Wal-Mart’s early investors, participating in the growth of the business between 1972 and 2012 had been a blessing for any investor that chose to buy Wal-Mart outright instead of investing in something like an index fund.

The past three years have not been as kind to Wal-Mart shareholders. Between 2012 and 2015, earnings per share have exactly come down a bit. Wal-Mart made $5.02 in 2012, and is only expected to … Read the rest of this article!