While Wal-Mart (WMT) may not benefit directly from rising interest rates, the underlying reasons for rising interest rates are good for the company. Low unemployment, and rising wages mean that consumers will have more discretionary income to spend, and some of that discretionary income will be spent at Wal-Mart stores. Wal-Mart has been a strong performer over the recent years, as heavy investments in its e-commmerce business have paid off, and the company has emerged as the strongest competitor to Amazon’s (AMZN) online dominance. If the underlying reasons for higher interest rates remain in place, Wal-Mart should enjoy increased consumer demand, which would drive shares higher. WMT is trading at $100.09, with an average price target of $108.33.
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