WMT: Barron's: Load Up the Shopping Cart

• WMT's market value ($182 b) is less than half its revenue
• At $48.58, Wal-Mart's stock is every bit as discounted as its merchandise. If some of the retailer's new initiatives succeed, the stock could surge by 33%.
• Company's execs still make appearances at growth-stock conferences, but shares are increasingly showing up in portfolios of classic value-investing crowd (ex: Harris Associates' Oakmark Funds, Tweedy Browne and Wally Weitz & Co.'s Weitz Funds)
• Berkshire Hathaway doubled its position last November and kept the stake at least through the first quarter
• Citi's Weinswig: potential for as much as 33% appreciation in the shares ($65) if the company can improve its same-store sales growth and boost customer traffic in its U.S. operation (nearly 64% of sales)
• Capturing more growth in its international division (about 25% of sales) also key
• Fashion is a problematic area for WMT. Apparel represents 10%, or $40 billion, of total sales, down from 12% two years ago. WMT struggles to get trends right, missed the boat while TGT collaborate with designers
• Sam's Club is getting a facelift and adding more fresh foods and gourmet items, aiming to be more competitive with No. 1 Costco (COST).
• More emphasis on its online operations, at a time when more shoppers are making purchases with their smartphones
• Starting to press into urban markets with stores that are smaller than the supercenters it typically builds in rural markets.
• The man charged with reinvigorating the U.S. business, Bill Simon, was promoted to chief executive of Wal-Mart U.S. in early June. He succeeds Eduardo Castro-Wright, who was put in charge of the Global.com and Global Sourcing units. Simon joined Wal-Mart in 2006 from Brinker International and has been on a growth trajectory ever since, most recently serving as chief operating officer of Wal-Mart U.S. Considered a strong operator, Simon played a key role in launching a Wal-Mart U.S. prescription program that charges just $4 for a 30-day supply. He also was behind an effort to improve customer service by providing faster checkouts and spiffing up stores. Under his leadership, Wal-Mart shares could start shining, too.