Wal-Mart Ups Guidance, Hits New 52-week High

Shares of Wal-Mart Stores Inc. hit a new 52-week high on April 16 at $57.05, continuing an upward trend in value that has coincided with the national economic downturn.

Since hitting a 52-week low at $42.09 on Sept. 10, Wal-Mart has gained 35.5 percent following a holiday season when only it and discount apparel retailer T.J. Maxx posted positive growth numbers in same-store sales versus 2006.

As consumers continue to feel the squeeze from high gas and food prices, investors are clearly betting on Wal-Mart not only as the continued destination for its lower-income base, but for the middle class who may have shunned it during better times in favor of faux high-end retailers like Target or Kohl’s.

When releasing same-store sales growth of 0.7 percent for the five-week March period, the Bentonville retailer reported grocery, health and wellness products and electronics remain its strongest business segments.

Wal-Mart’s U.S. operations president Eduardo Castro-Wright said the electronics department is posting triple-digit comp sale growth in flat-panel TVs, GPS units, laptops, digital cameras and video games.

Citing a potential benefit from the Easter weekend falling in the April sales period as well as improved inventory levels, CFO Tom Schoewe reported an increased forecast for same-store sales. Schoewe said growth was expected to be between 1 percent and 3 percent, up from the previous estimate of flat to 2 percent.

Accordingly, the company revised upward its earnings guidance to between 74 cents and 76 cents per share from previous guidance of 70 cents to 74 cents.