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Walmart (WMT) Stock Sinks As Market Gains: What You Should Know
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Walmart (WMT - Free Report) closed at $100.61 in the latest trading session, marking a -1.77% move from the prior day. This move lagged the S&P 500's daily gain of 1.09%. Meanwhile, the Dow gained 0.97%, and the Nasdaq, a tech-heavy index, added 2.01%.
Coming into today, shares of the world's largest retailer had gained 7.64% in the past month. In that same time, the Retail-Wholesale sector lost 13.73%, while the S&P 500 lost 7.81%.
WMT will be looking to display strength as it nears its next earnings release, which is expected to be November 15, 2018. The company is expected to report EPS of $1.22, up 22% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $124.83 billion, up 1.34% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.79 per share and revenue of $515.06 billion. These totals would mark changes of +8.37% and +2.94%, respectively, from last year.
Any recent changes to analyst estimates for WMT should also be noted by investors. 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.8% lower. WMT is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note WMT's current valuation metrics, including its Forward P/E ratio of 21.38. This represents a premium compared to its industry's average Forward P/E of 17.55.
Meanwhile, WMT's PEG ratio is currently 4.21. 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. Retail - Supermarkets stocks are, on average, holding a PEG ratio of 2.34 based on yesterday's closing prices.
The Retail - Supermarkets industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 191, which puts it in the bottom 25% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Walmart (WMT) Stock Sinks As Market Gains: What You Should Know
Walmart (WMT - Free Report) closed at $100.61 in the latest trading session, marking a -1.77% move from the prior day. This move lagged the S&P 500's daily gain of 1.09%. Meanwhile, the Dow gained 0.97%, and the Nasdaq, a tech-heavy index, added 2.01%.
Coming into today, shares of the world's largest retailer had gained 7.64% in the past month. In that same time, the Retail-Wholesale sector lost 13.73%, while the S&P 500 lost 7.81%.
WMT will be looking to display strength as it nears its next earnings release, which is expected to be November 15, 2018. The company is expected to report EPS of $1.22, up 22% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $124.83 billion, up 1.34% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.79 per share and revenue of $515.06 billion. These totals would mark changes of +8.37% and +2.94%, respectively, from last year.
Any recent changes to analyst estimates for WMT should also be noted by investors. 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.8% lower. WMT is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note WMT's current valuation metrics, including its Forward P/E ratio of 21.38. This represents a premium compared to its industry's average Forward P/E of 17.55.
Meanwhile, WMT's PEG ratio is currently 4.21. 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. Retail - Supermarkets stocks are, on average, holding a PEG ratio of 2.34 based on yesterday's closing prices.
The Retail - Supermarkets industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 191, which puts it in the bottom 25% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.