A Sloper was kind enough to send me the following idea this morning, which I wanted to share:
Walmart is benefitting from 2 major events:
1. The recent significant drop in gasoline prices (50+%) helps the low income segment of the population the most since they spend most of their income on the basics. Less fuel expenses leaves more for other things. Some of this goes to Walmart.
2. The strong dollar lowers the costs to importers and reduces the income of exporters. Walmart is a big importer.
Both of these should help Walmart’s bottom line. In Nov 2014, Walmart broke out of its consolidation with a gap up and today moved to new highs.