Wal-Mart to 'Shrug Off Recession'

The world's biggest retailer, Wal-Mart, is likely to shrug off the world's economic difficulties better than its competitors, according to analysts.

A retail analyst at JPMorgan has issued a recommendation to investors to buy shares in the company.

"We are adjusting our ratings to reflect a changed world, where sales and earnings risk have escalated, especially for those companies whose goods are more discretionary," the analyst Shari Erberts wrote in a research paper.

In other words, Wal-Mart will stay ahead of its competitors because of its focus on items such as food, as opposed to expensive luxury goods, which are suffering from a sharp fall in consumer confidence in the US.

JP Morgan recommended the stock because "Wal-Mart's fundamentals far outpace its peers."

This should "keep sales trends relatively strong," the analyst wrote.
X
This ad will auto-close in 10 seconds