Boosted by the Stimulus

Recent sales Sumo Wrestling Suits figures at Wal-Mart have been impressive, particularly in May when consumers began to spend federal rebate checks designed to stimulate the economy. May same-store sales, excluding gas, were up 4.4% from a year ago, nearly double the chain’s most optimistic predictions.

Those, like White, who are bullish on Wal-Mart’s stock believe the chain will continue to see these positive trends, particularly if gas prices remain high and the weak economy makes Americans anxious about the job market. But investors say Wal-Mart has other advantages, too.

Huntington’s Hardy likes the consistency of Wal-Mart’s earnings and revenue growth. In uncertain times, “Wal-Mart is one thing that you can set your watch by.”

Many investors argue Wal-Mart has learned lessons from past missteps. It has slowed store growth in the U.S.—which was providing diminishing returns—and focused on growth overseas.