Walmart

Investment Analysis and Recommendation Paper

[Name of the Writer]

[Name of the Institution]

Investment Analysis and Recommendation Paper

Introduction

Sam Walton renowned businessman launched Walmart on July 2, 1962, in Rogers which opened the doors for people to save money and live better! Sam Walton initiated Walmart with one store in Rogers and today Walmart is operating more than ten thousand retail units under sixty nine different banners in twenty seven countries. Almost two million hard working associates are serving for two hundred million customers.

Walmart has great growth pattern and it is making a difference in its approaches comparatively to its competitors. In the fiscal year 2012 Walmart delivered strong financial performance and increased its net sales by 5.9% to $443.9 billion, (Annual Report, 2012). The operating income of Walmart is increased by 4% to $26.6 billion. The earning per share of Walmart is increased from $4.18 to $4.54 from preceding year (Annual Report, 2012, http://www.walmartstores.com/sites/annual-report/2012/WalMart_AR.pdf). Walmart added 52.2 million square feet by 1160 supplementary units which includes various acquisitions in South Africa and United Kingdom. Walmart delivered $11.3 billion exceptional returns to the shareholders by giving them stock dividends. Walmart is conducting its business operations strategically and making exceptional business progress.

Walmart U.S. believes in hard work and it is investing in lower prices and making real improvements in merchandising and operations. Positive sales increments are giving high returns on investments and equities. Walmart has never focused price leadership as Walmart believes in serving rather than making huge amount of profits by charging high prices of the goods and services. Walmart believes in cost effectiveness and it initiated to invest $2 billion in prices by expenses reductions and making productivity enhancements during the next coming...