. >> here with a closer look, joe feldman. welcome. susie ran off the names of some companies out with results within the next few days. wal-mart, macy's, nord strom, tiffany. >> the discounters continue to do quite well. people are shopping for basic items, grocery related household it items. we continue to see that. last week costco reported sales numbers that were quite good yet again. we think wal-mart and target will sound pretty solid. >> and a couple of stocks that you are recommending to investors to buy. tell us about best buy, whole foods and pet smart all different kinds of companies. why do you like them? >> best buy is a turn around story. everybody left best buy for dead thinking amazon was going to take over. the company has been on a big effort to cut costs. they have brought down prices on their products so they are a married with anybody on the internet. you have the dynamic where tax collection for internet sales is being pushed on the states. where it is happening you are seeing sales trends at best buy pick up a li

a good sign to joe feldman. >> given the fact that sales trends are doing better right now, they sound like they're getting things in order. there's going to be some expansion issues in the second quarter. they should be able to continue that productivity loop. >> earnings forecast amidst wall street estimates. >> walmart violated the corrupt practices act. they're seen cutting into walmart's profits. for nicely business report, i'm mary thompson. >> here now with his outlook for bud bugash. your report out within the last couple of hours, you call walmart a market performed stock. i guess that means you're neutral on it, you're not urging people to go in and buy hand over fist, what do you see here? >> that's correct. >> we see a terrific retailer and certainly an important company for consumers and for investors alike. but we think the valuation is such that it will perform at a market level. the valuation today is around 15 times our estimate going-forward. and that's actually above the five-year median right in line with the ten-year median. on that basis we find the stock as a mar

joe feldman is assistant director of research and joins us now. think it's more or less what you think? the online guys, maybe not as good for them and better for the brick and mortar sitting on main street or the big box? >> i think that's the way to think about it, but even the online guys like an amazon has been preparing for this, i've been -- i think it's the small guy trying to take a bite and the consumer was supposed to have been paying tax on these goods anyway. >> yes. but they probably haven't been, right? >> correct. >> no, i realize that, but i guess my point is it's just shifting the burden of the tax collection on to the retailer as opposed to taking it away from the consumer because the consumer wasn't paying it. it certainly raises revenues for the states and i do think it levels the playing field and you're seen it, with a company like best buy, for example, one of the companies that i follow where they are starting to pick up with better collecting sales tax on online sales. >> you've seen a real impact on best buy as a result o

joe feldman, managing director and senior research analyst with the pelty group. >> you know, back atnds were fairly weak actually. they've said after the first two weeks the quarter sales were trending flattish to slightly positive so far, in may they are more positive so they had a rough patch at the start of the year, that's for sure. >> what's your recommendation to people now on the stock? what should you do? >> we see walmart as a good core long term holding. they pay a nice dividend yield of 2%. they buy back a lot of stock every year. we forecast $8 billion a year for the next several years. i see it as a nice healthy stock that's going to perform in line to slightly better than the market and you want to own it. you can buy it on a day like today when there is a little weakness. >> what do you make of the fact their guidance fell so far short of consensus? is that concerning looking towards the rest of the year? >> i think they had a misread early on and the sales didn't pop back as well as they could have. i think that given the fact that sales trends are doing a little bit