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Fast Money

Why Wal-Mart Is Working

With Wal-Mart shares up 20% so far this year will earnings on Tuesday show the retailer is firing on all cylinders?

Wal-Mart reports earnings Tuesday with analysts polled by Thomson Financial expecting a profit of 75 cents per share, on revenue of $93.22 billion. The world’s largest retailer is expected to benefit as customers begin spending their fiscal-stimulus checks.

One day ahead of earnings Citigroup raised its price target on Wal-Mart to $67 from $57, saying the stock's valuation should reflect a higher multiple to account for greater growth and profit opportunities from the company's streamlined international operations.

I agree with Citigroup, exclaims Jeff Make. Here’s why…

1. Brokers love to love Wal-Mart
2. The bar is set low
3. Wal-Mart has digested gains and grown into it’s multiple.

I think you can buy WMT on any dip, Macke says.

Wal-Mex is the biggest retailer in Mexico, adds Tim Seymour. That’s also a positive for this company.

I think Wal-Mart could have a 60-handle, adds Guy Adami.

Tomorrow's Trades: Wal-Mart

I like Target better, counters Pete Najarian, because I think they’ve got more growth ahead.

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Trader disclosure: On May 12, 2008, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders: Macke Owns (MSFT), (INTC), (ATVI); Najarian Owns (AAPL), (BKC), (ENER), (TSO), (XLF), (PDE), (DIS); Najarian Owns (AA) Calls, (C) Calls, (MSFT) Calls, (YHOO) Calls; Adami Owns (AGU), (BTU), (NUE), (C), (GS), (MSFT), (INTC); Seymour Owns (CSCO), (INTC), (MBI), (MER), (TSO); Seygem Asset Management Owns (VIP); NBC Universal Is The Parent Company Of CNBC