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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 $147.45 in the latest trading session, marking a -1.02% move from the prior day. This move lagged the S&P 500's daily gain of 0.23%. Elsewhere, the Dow lost 0.03%, while the tech-heavy Nasdaq added 0.43%.

Prior to today's trading, shares of the world's largest retailer had gained 2.33% over the past month. This has outpaced the Retail-Wholesale sector's loss of 0.21% and lagged the S&P 500's gain of 3.86% in that time.

Investors will be hoping for strength from WMT as it approaches its next earnings release. 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.

WMT's full-year Zacks Consensus Estimates are calling for earnings of $5.55 per share and revenue of $554.69 billion. These results would represent year-over-year changes of +12.58% and +5.86%, respectively.

Any recent changes to analyst estimates for WMT should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. WMT is currently sporting a Zacks Rank of #2 (Buy).

Investors should also note WMT's current valuation metrics, including its Forward P/E ratio of 26.87. This valuation marks a premium compared to its industry's average Forward P/E of 20.03.

Investors should also note that WMT has a PEG ratio of 4.88 right now. 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 2.83 as of yesterday's close.

The Retail - Supermarkets industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 58, which puts it in the top 23% 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.

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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