‘Boring’ Wal-Mart Could Soar 41% Over the Next Year
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It’s a crazy claim…
Could Wal-Mart (WMT) – a boring retailer – really soar 41% over the next year?
History says, “Yes!”
You see, the world’s largest retailer has been on a hot streak…
Wal-Mart recently moved higher for 11 consecutive days. That’s a rare feat. And history says it tends to lead to massive returns.
Since 1973, Wal-Mart has increased an incredible 41% a year after similar instances. And it could happen again, starting now.
Let me explain…
From its birth in the early 1960s, Wal-Mart has expanded from one small store in Arkansas to more than 5,000 stores all over the United States.
By 1991, the company made more profits than retail kings like K-mart and Sears.
Today, Wal-Mart has become the undisputed ruler of retail by sales. It’s even closing the gap on e-commerce giant Amazon (AMZN) in online sales… Wal-Mart recently reported that it grew online sales 67% by volume in the second quarter.
This strong growth in online sales likely helped the company’s share price move higher 11 days in a row. The chart below shows the recent uptrend. Take a look…
This has only happened 13 times in the past 44 years. And similar instances say the gains will continue…
Since 1973, when Wal-Mart’s stock moved higher for 11 straight days, it has typically gone on to rally an average of 41% over the next year. Take a look…
Obviously, Wal-Mart has been a winner since 1973 – returning 17.2% a year. But the stock crushed normal returns after instances like the one we saw recently.
Similar strings of “up” days led to 11% gains in three months… 37% gains in six months… and massive 41% gains over the next year.
I know it’s a bold claim. It sounds crazy to say it…
But history says Wal-Mart has a legitimate shot at huge gains over the next year. And 41% gains are in no way out of the question.
If you’ve been thinking about buying this blue-chip stock, now could be the perfect time.
Good investing,
Brett Eversole
