If you are a long-term investor, then you should not be discouraged by Wal-Mart's guidance announcement, an an analyst said Thursday.
"We believe that this company is going to continue to grow; that this is transitory," said Chad Morganlander, Washington Crossing Advisors portfolio manager. "This isn't a company that is going out of business anytime soon, and we feel as if they overall trajectory is going to be for the stock to go well in excess of 5 to 10 percent."
Despite, Wal-Mart's lowered guidance for the year, the company is reinvesting in itself in order to grow. Looking at the reasons behind the move may make it less painful for investors.
The company is investing $2.7 billion in its workforce over the next two years. It's also chalking up roughly $35 billion over the next three years to invest in its e-commerce operations.
Wal-Mart said it plans to generate $80 billion in cash over the next three years. And the company plans to buy back $20 billion in shares over the next two years, which could help boost stock.
All of these moves, while painful now, are necessary to help the company compete with other e-commerce giants like Amazon.
Morganlander, who invests in Wal-Mart on behalf of his firm, was speaking in an interview on CNBC's "Power Lunch." He expects revenue to continue to grow at a rate of 2 to 4 percent with a dividend yield of 3.3 percent over the longer term.
In addition, he said valuation is now cheaper than it was in 2009. "It's a highly profitable entity," he said.
Morganlander said that domestic consumer patterns should accelerate over the next 18 months.
Disclosures: Chad Morganlander does not personally own shares of WMT. However, his firm, does own more than 1 percent.
— CNBC's Courtney Reagan contributed to this report.