Wal-Mart Gets Back to Growth: Best in Class

BOSTON (TheStreet) -- Wal-Mart WMT, the world's largest retailer, is among the most criticized U.S. companies for its low wages and use of overseas suppliers. It also employs more people than any other company and charges the lowest prices on items ranging from food to electronics. A bastion of free-market ideals, Wal-Mart is an American mainstay with a storied history that's worth a look from investors. Founded in 1962 by Sam Walton, Wal-Mart initially lagged behind discount-retail competitors K-Mart, now part of Sears SHLD, and Target TGT. But, after going public in 1972, Wal-Mart gained the capital it needed to rapidly expand. By the end of the decade, Wal-Mart was doing business in 10 states. In the '80s, it pioneered the supercenter model, opening its first Sam's Club. By the end of that decade, sales had ballooned to $26 billion. Wal-Mart, now a member of the blue-chip Dow Jones Industrial Average, is still a compelling growth company. Criticism of the low-cost business model became subdued during the recession as once-righteous Americans flocked to its stores to lock in discounts amid the worst employment contraction since the Depression. Wal-Mart has increased sales 4.7% annually, on average, since 2007. Its stock delivered annualized gains of 7.8% over that span, outperforming U.S. indices. Wal-Mart is scheduled to report fiscal third-quarter results Nov. 16. Its fiscal second-quarter net income rose 3.6% to $3.6 billion. To read the rest, head over to TheStreet.com