Wal-Mart faces the largest ever class-action lawsuit, charging it with discriminating against women in pay and promotions. Analysts say a settlement could reach into the billions of dollars.
The bad news — what Wall Street calls "headline risk" — is clearly weighing on the stock, which is down about 20% from a November 2004 peak. Its shares trade at 15.4 times analysts' profit forecasts for next year, below rival Target's (TGT) price-to-earnings ratio of 18.
Wake-Up Wal-Mart, a group backed by the United Food and Commercial Workers union, dismissed the efforts as "empty actions" that shift responsibility to suppliers and others.
"What this truly is, is a publicity stunt meant to repair a faltering public image," Chris Kofinis, a spokesman for Wake-Up Wal-Mart, said.
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