investing

The Best Stock in Arkansas: Walmart Stores

We analyzed publicly traded companies across the Natural State to identify the best stock in Arkansas to buy now.

We scoured the nation to identify the best stock in every state. Walmart Stores (symbol WMT) is the publicly traded company we picked in Arkansas. The company headquarters is located in Bentonville.

A word of caution: Since we selected a single stock from each state (plus one from D.C), and choices in some states are sparse, a few of our picks are best suited to investors comfortable with a higher degree of risk. This is not necessarily one of our 51 favorite stocks in the entire U.S., in other words.

Walmart Stores by the Numbers

  • Headquarters: Bentonville
  • Share price: $75.52
  • Market value: $227.7 billion
  • Price-earnings ratio: 17

(Prices and data are as of June 22, 2017)

Walmart is the world’s largest retailer, at least in terms of floor space, with Walmart, Sam’s Club and Walmart International accounting for some 1.2 billion square feet worldwide. Square footage didn’t help brick-and-mortar shops when the big, bad wolf known as Amazon came to blow them down, and Walmart’s shares fell along with those of other retailers on news of Amazon’s bid for grocer Whole Foods.

But Walmart is making moves to better compete with the e-commerce giant, says Kevin Downing, an analyst at stock research firm Value Line. Walmart recently launched free two-day shipping on orders of more than $35 (no membership required), and it introduced a discount, to take full effect by the end of June, on more than 1 million online-only items if customers are willing to ship them to their local store for pickup. In addition to buying Amazon rival Jet.com, the company has acquired online retailers Hayneedle, Shoebuy and Modcloth, with an acquisition of trendy men’s fashion start-up Bonobos in the works. Walmart’s e-commerce strategy is paying off, says Downing. The retailer posted a 63% year-over-year gain in e-commerce sales for the quarter that ended in April 2017. What’s more, the company hopes to improve customers’ in-store experience, having raised wages and invested in employee training. These factors should spark modest earnings-per-share growth for the fiscal year ending January 2018, after two years of decline, says CFRA analyst Joseph Agnese. He rates the stock a “strong buy” and says the shares could trade at $87 over the next 12 months.

Most Popular

Tax Wrinkles for Work-at-Home Employees During COVID-19
taxes

Tax Wrinkles for Work-at-Home Employees During COVID-19

Are your home office expenses deductible? How does going out of state to work for a while affect your tax picture? There are some interesting wrinkles…
November 9, 2020
Retirement: It All Starts with a Budget
personal finance

Retirement: It All Starts with a Budget

When you’re meeting with your financial planner, do you talk about your budget? If not, you should.
November 10, 2020
Will Joe Biden Raise YOUR Taxes?
taxes

Will Joe Biden Raise YOUR Taxes?

During the campaign, Joe Biden promised that he would raise taxes for some people. Will you be one of them?
November 10, 2020

Recommended

Bonds: 10 Things You Need to Know
Investing for Income

Bonds: 10 Things You Need to Know

Bonds can be more complex than stocks, but it's not hard to become a knowledgeable fixed-income investor.
July 22, 2020
Warren Buffett Stocks Ranked: The Berkshire Hathaway Portfolio
stocks

Warren Buffett Stocks Ranked: The Berkshire Hathaway Portfolio

The Berkshire Hathaway portfolio is a diverse set of blue chips and, increasingly, lesser-known growth bets. Here's a look at every stock picked by Wa…
November 17, 2020
The Best Vanguard Funds for 401(k) Retirement Savers
mutual funds

The Best Vanguard Funds for 401(k) Retirement Savers

Vanguard funds account for a third of the 100 most popular 401(k) retirement products. We rank Vanguard's best actively managed funds, including its t…
November 11, 2020
Don’t Bank on the Safety of Bonds in a Pandemic
bonds

Don’t Bank on the Safety of Bonds in a Pandemic

Bond yields are too low to follow the old investing playbook. Here are some tips to restructure the bond side of your portfolio today.
November 5, 2020