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Walmart (WMT) Gains But Lags Market: What You Should Know
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Walmart (WMT - Free Report) closed at $143.77 in the latest trading session, marking a +0.2% move from the prior day. This move lagged the S&P 500's daily gain of 0.59%. Meanwhile, the Dow gained 0.53%, and the Nasdaq, a tech-heavy index, added 0.45%.
Heading into today, shares of the world's largest retailer had lost 5.87% over the past month, lagging the Retail-Wholesale sector's loss of 4.56% and the S&P 500's loss of 4.33% in that time.
Walmart will be looking to display strength as it nears its next earnings release. In that report, analysts expect Walmart to post earnings of $1.50 per share. This would mark a year-over-year decline of 1.96%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $158.81 billion, up 3.88% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $6.08 per share and revenue of $605.64 billion, which would represent changes of -5.88% and +5.74%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Walmart. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.03% higher. Walmart is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Walmart currently has a Forward P/E ratio of 23.61. For comparison, its industry has an average Forward P/E of 11.82, which means Walmart is trading at a premium to the group.
Also, we should mention that WMT has a PEG ratio of 4.29. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Retail - Supermarkets industry currently had an average PEG ratio of 2.38 as of yesterday's close.
The Retail - Supermarkets industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 17, putting it in the top 7% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow WMT in the coming trading sessions, be sure to utilize Zacks.com.
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Walmart (WMT) Gains But Lags Market: What You Should Know
Walmart (WMT - Free Report) closed at $143.77 in the latest trading session, marking a +0.2% move from the prior day. This move lagged the S&P 500's daily gain of 0.59%. Meanwhile, the Dow gained 0.53%, and the Nasdaq, a tech-heavy index, added 0.45%.
Heading into today, shares of the world's largest retailer had lost 5.87% over the past month, lagging the Retail-Wholesale sector's loss of 4.56% and the S&P 500's loss of 4.33% in that time.
Walmart will be looking to display strength as it nears its next earnings release. In that report, analysts expect Walmart to post earnings of $1.50 per share. This would mark a year-over-year decline of 1.96%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $158.81 billion, up 3.88% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $6.08 per share and revenue of $605.64 billion, which would represent changes of -5.88% and +5.74%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Walmart. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.03% higher. Walmart is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Walmart currently has a Forward P/E ratio of 23.61. For comparison, its industry has an average Forward P/E of 11.82, which means Walmart is trading at a premium to the group.
Also, we should mention that WMT has a PEG ratio of 4.29. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Retail - Supermarkets industry currently had an average PEG ratio of 2.38 as of yesterday's close.
The Retail - Supermarkets industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 17, putting it in the top 7% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow WMT in the coming trading sessions, be sure to utilize Zacks.com.