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Walmart (WMT) Outpaces Stock Market Gains: What You Should Know

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In the latest trading session, Walmart (WMT - Free Report) closed at $146.66, marking a +0.62% move from the previous day. This change outpaced the S&P 500's 0.57% gain on the day. Elsewhere, the Dow gained 1.44%, while the tech-heavy Nasdaq lost 0.61%.

Coming into today, shares of the world's largest retailer had lost 2.48% in the past month. In that same time, the Retail-Wholesale sector lost 1.09%, while the S&P 500 gained 0.83%.

Wall Street will be looking for positivity from WMT as it approaches its next earnings report date. In that report, analysts expect WMT to post earnings of $1.47 per share. This would mark year-over-year growth of 6.52%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $146.06 billion, up 3.1% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $5.55 per share and revenue of $554.69 billion, which would represent changes of +12.58% and +5.86%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for WMT. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. WMT currently has a Zacks Rank of #3 (Hold).

Digging into valuation, WMT currently has a Forward P/E ratio of 26.28. Its industry sports an average Forward P/E of 19.69, so we one might conclude that WMT is trading at a premium comparatively.

Meanwhile, WMT's PEG ratio is currently 4.78. 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 was holding an average PEG ratio of 2.75 at yesterday's closing price.

The Retail - Supermarkets industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 104, which puts it in the top 41% 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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