GBLO - Walmart May Offer Opportunity In The Current 'Unusual Environment'

• It's hard to go wrong investing in one of the strongest big-box retailers out there.
• One of the reasons why we like Walmart is not only that the company runs an effective big-box operation, but also that it owns fast-growing Sam's Club.
• Though operating profit performance during its first-quarter fiscal 2023 results left a lot to be desired, we value Walmart on the basis of mid-cycle growth margin expectations.
• At the moment, we value shares of Walmart at ~$137 each, modestly above where shares are trading at the time of this writing (~$121 each).
• A dividend yield of ~1.9% is a nice payout for long-term Walmart shareholders as they get paid to wait out the current "unusual environment," as CEO Doug McMillon noted.

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