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Walmart (WMT) Gains But Lags Market: What You Should Know
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Walmart (WMT - Free Report) closed the most recent trading day at $146.13, moving +0.88% from the previous trading session. This move lagged the S&P 500's daily gain of 1.29%. Meanwhile, the Dow gained 0.8%, and the Nasdaq, a tech-heavy index, added 10.96%.
Heading into today, shares of the world's largest retailer had lost 1.78% over the past month, lagging the Retail-Wholesale sector's gain of 2.19% and the S&P 500's loss of 0.23% in that time.
Wall Street will be looking for positivity from Walmart as it approaches its next earnings report date. On that day, Walmart is projected to report earnings of $1.50 per share, which would represent a year-over-year decline of 1.96%. Meanwhile, our latest consensus estimate is calling for revenue of $158.81 billion, up 3.88% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.08 per share and revenue of $605.64 billion. These totals would mark changes of -5.88% and +5.74%, respectively, from last year.
Any recent changes to analyst estimates for Walmart should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Walmart currently has a Zacks Rank of #2 (Buy).
In terms of valuation, Walmart is currently trading at a Forward P/E ratio of 23.84. For comparison, its industry has an average Forward P/E of 11.71, which means Walmart is trading at a premium to the group.
It is also worth noting that WMT currently has a PEG ratio of 4.33. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. WMT's industry had an average PEG ratio of 2.23 as of yesterday's close.
The Retail - Supermarkets industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 11, putting it in the top 5% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Walmart (WMT) Gains But Lags Market: What You Should Know
Walmart (WMT - Free Report) closed the most recent trading day at $146.13, moving +0.88% from the previous trading session. This move lagged the S&P 500's daily gain of 1.29%. Meanwhile, the Dow gained 0.8%, and the Nasdaq, a tech-heavy index, added 10.96%.
Heading into today, shares of the world's largest retailer had lost 1.78% over the past month, lagging the Retail-Wholesale sector's gain of 2.19% and the S&P 500's loss of 0.23% in that time.
Wall Street will be looking for positivity from Walmart as it approaches its next earnings report date. On that day, Walmart is projected to report earnings of $1.50 per share, which would represent a year-over-year decline of 1.96%. Meanwhile, our latest consensus estimate is calling for revenue of $158.81 billion, up 3.88% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.08 per share and revenue of $605.64 billion. These totals would mark changes of -5.88% and +5.74%, respectively, from last year.
Any recent changes to analyst estimates for Walmart should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Walmart currently has a Zacks Rank of #2 (Buy).
In terms of valuation, Walmart is currently trading at a Forward P/E ratio of 23.84. For comparison, its industry has an average Forward P/E of 11.71, which means Walmart is trading at a premium to the group.
It is also worth noting that WMT currently has a PEG ratio of 4.33. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. WMT's industry had an average PEG ratio of 2.23 as of yesterday's close.
The Retail - Supermarkets industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 11, putting it in the top 5% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.