Last July, I revised and updated the criteria for the “Flying Five” portfolio. I chose top companies with above-average dividend yields, relatively low price-earnings ratios, and a positive profit outlook. The results speak for themselves, with four of the five achieving double-digit-percentage gains. Now, I recommend you swap one for Walmart Inc. (WMT), observes Mark Skousen, editor of Forecasts & Strategies.
Our average return was 25.7% for the 12-month period, compared to 19% for the Dow Jones Industrial Average. We are back on track.
Walmart Inc. (WMT)
As for WMT, it has a lower dividend yield than the stock we’re selling. But Walmart's earnings are growing rapidly, almost tripling in the past year. Profit margins are up to 2.9% (it was only around 1% a couple of years ago). It has beat Street expectations four quarters in a row.
Walmart is also expanding through partnerships and acquisitions. Its delivery programs are competing with Amazon.com Inc. (AMZN). It has invested in the online e-commerce platform Flipkart.
Walmart’s product offerings include almost everything from grocery to cosmetics, electronics to stationery, home furnishings to health and wellness products, and apparel to entertainment products.
Recommended Action: Buy WMT.
