Wal-Mart (NYSE:WMT) Set to Rebound in 2011?

The share price of Wal-Mart (NYSE:WMT) has been dismal in contrast to its peers, as they were only able to rise to $54 in 2010, a gain of 1 percent, while their main competitors, Costco Wholesale (Nasdaq:COST) and Target (NYSE:TGT) both rose by close to 25 percent.

As other competitors in the discount sector did well, it can't be blamed solely on the economy or financial condition of their base customer.

Part of it is the lack of appreciation for the global exposure of the giant retailer, which now accounts for 20 percent of their earnings.

Attempting to change some of their merchandise to a customer in a different economic strata has also backfired on the company over the last couple of years, bringing confusion as to what the company was and represented.

Estimates are Wal-Mart increased same-store sales by over 10 percent in 2010, and will probably do the same in 2011.

EPS estimates for full year 2010 are at about $4.05 a share, and for fiscal 2012 are at $4.45, which imply Wal-Mart could be considered an inexpensive stock at this time.

Over the last decade, Wal-Mart shares have done almost nothing, even though profits at the company have risen threefold.

Eventually they have to break out again, as their low share price isn't justified by the performance and growth of the company.

Wal-Mart was trading at $54.70, gaining $0.77, or 1.43 percent, as of 3:02 PM EST.