What Is Happening In Wal-Mart? (WMT)

Wal-Mart WMT reported their quarterly earnings on Tuesday exceeding Wall Street estimates. The company earned $0.88 per share compared to consensus estimates of $0.85. Year over year revenue was up 6.0%. The stock rallied to over $54 after the strong report. Since then, however, the direction has been almost straight down in WMT. After trading as high as $54.43 on Tuesday, the stock is now all the way down at $50.75. The shares are now trading at at forward P/E of just 11.55 and a PEG ratio of 1.22. With markets in turmoil and fears of a double dip recession beginning to creep back into the consciousness of investors, common sense would suggest that WMT would be a good place to hide out. The Street loves WMT, with a median price target of $62.00 and 25 Buy or Strong Buy ratings out of the 28 brokers that cover the name. If WMT can hold the $50 level, it could be a steal at current levels, although recent price action may be leaving some investors scratching their head.