We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Before the opening bell yesterday, Walmart (WMT - Free Report) reported stronger-than-expected third-quarter 2022 results, wherein it outpaced both earnings and revenue estimates. The mega retailer also raised its full-year outlook.
The solid results are expected to fuel a rally in ETFs having the highest allocation to the world's largest brick-and-mortar retailer. Consumer Staples Select Sector SPDR Fund (XLP - Free Report) , Vanguard Consumer Staples ETF (VDC - Free Report) , Fidelity MSCI Consumer Staples Index ETF (FSTA - Free Report) and iShares Evolved U.S. Discretionary Spending ETF (IEDI - Free Report) will be in focus in the coming days.
Walmart Earnings in Focus
Earnings per share came in at $1.45, surpassing the Zacks Consensus Estimate of $1.39 and improving 8.2% from the year-ago earnings. Revenues increased 4.3% year over year to $140.5 billion and topped the consensus mark of $135.7 billion.
U.S. comparable sales jumped 9.2%. E-commerce sales grew 8% in the quarter despite supply chain and inflation headwinds. Walmart U.S. e-commerce sales grew 8% year over year despite supply chain and inflation headwinds (see: all Consumer Staples ETFs here).
The world's biggest retailer raised its annual forecast in anticipation of a surge in demand for toys and apparel during the crucial holiday season even though the global supply chain disruptions hit its margins in the third quarter. Walmart now expects earnings per share of $6.40, up from the previous expectation of $6.20-$6.35 for fiscal 2022. U.S. same-store sales are likely to increase more than 6%, higher than its prior forecast of a 5% to 6% rise.
Below we have detailed the ETFs:
Consumer Staples Select Sector SPDR Fund
Consumer Staples Select Sector SPDR Fund targets the broad consumer staples and follows the Consumer Staples Select Sector Index. It holds about 32 securities in its basket with Walmart taking the fourth spot at 9.4%. The fund XLP has the largest share in beverages and household products, with 25.1% and 24.4%, respectively, while food and staples retailing, and food products account for a double-digit allocation each (read: 5 ETFs to Buy This Holiday Season for Gift of Good Returns).
Consumer Staples Select Sector SPDR Fund is the most popular consumer staples ETF with AUM of $11.9 billion and average daily volume of 10.7 million shares. XLP charges 12 bps in fees per year and has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook.
Vanguard Consumer Staples ETF
Vanguard Consumer Staples ETF also targets the broad consumer staples by tracking the MSCI US Investable Market Consumer Staples 25/50 Index. The fund VDC holds 97 stocks in its basket, with Walmart occupying the second position, having 8.5% allocation. Vanguard Consumer Staples ETF is widely spread across household products, soft drinks, hypermarkets & supercenters, and packaged foods & meats that make up for a double-digit allocation each.
Vanguard Consumer Staples ETF manages a $6.2 billion asset base and charges a fee of 10 bps per year. VDC trades in a good volume of around 80,000 shares per day on average and has a Zacks ETF Rank #3 with a Medium risk outlook.
Fidelity MSCI Consumer Staples Index ETF
Fidelity MSCI Consumer Staples Index ETF tracks the MSCI USA IMI Consumer Staples Index, holding 103 stocks in its basket. Of these, Walmart takes the second spot with 8.3% share in FSTA. Fidelity MSCI Consumer Staples Index ETF is widely diversified across food and staples retailing, beverages, household products, and food products with double-digit exposure each.
Fidelity MSCI Consumer Staples Index ETF has amassed $840.2 million in its asset base while trading in a moderate volume of around 79,000 shares a day on average. FSTA charges 8 bps in annual fees from investors and has a Zacks ETF Rank #3 with a Medium risk outlook.
iShares Evolved U.S. Discretionary Spending ETF
iShares Evolved U.S. Discretionary Spending ETF is an actively managed ETF that employs data science techniques to identify companies with exposure to the discretionary spending sector. It follows the Cboe BZX formerly known as BAT and holds 205 stocks in its basket. Walmart occupies the fourth position with 5.2% share. IEDI is dominated by retailing with half of the portfolio while consumer services and food & staples retailing round off the next two with double-digit exposure each (read: U.S. Inflation at a 30-Year High: 5 Sector ETFs to Win).
iShares Evolved U.S. Discretionary Spending ETF has accumulated $26.2 million in its asset base and charges 18 bps in fees per year. Volume is paltry for IEDI as it exchanges 5,000 shares a day, on average.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
ETFs to Gain on Strong Q3 Walmart Earnings
Before the opening bell yesterday, Walmart (WMT - Free Report) reported stronger-than-expected third-quarter 2022 results, wherein it outpaced both earnings and revenue estimates. The mega retailer also raised its full-year outlook.
The solid results are expected to fuel a rally in ETFs having the highest allocation to the world's largest brick-and-mortar retailer. Consumer Staples Select Sector SPDR Fund (XLP - Free Report) , Vanguard Consumer Staples ETF (VDC - Free Report) , Fidelity MSCI Consumer Staples Index ETF (FSTA - Free Report) and iShares Evolved U.S. Discretionary Spending ETF (IEDI - Free Report) will be in focus in the coming days.
Walmart Earnings in Focus
Earnings per share came in at $1.45, surpassing the Zacks Consensus Estimate of $1.39 and improving 8.2% from the year-ago earnings. Revenues increased 4.3% year over year to $140.5 billion and topped the consensus mark of $135.7 billion.
U.S. comparable sales jumped 9.2%. E-commerce sales grew 8% in the quarter despite supply chain and inflation headwinds. Walmart U.S. e-commerce sales grew 8% year over year despite supply chain and inflation headwinds (see: all Consumer Staples ETFs here).
The world's biggest retailer raised its annual forecast in anticipation of a surge in demand for toys and apparel during the crucial holiday season even though the global supply chain disruptions hit its margins in the third quarter. Walmart now expects earnings per share of $6.40, up from the previous expectation of $6.20-$6.35 for fiscal 2022. U.S. same-store sales are likely to increase more than 6%, higher than its prior forecast of a 5% to 6% rise.
Below we have detailed the ETFs:
Consumer Staples Select Sector SPDR Fund
Consumer Staples Select Sector SPDR Fund targets the broad consumer staples and follows the Consumer Staples Select Sector Index. It holds about 32 securities in its basket with Walmart taking the fourth spot at 9.4%. The fund XLP has the largest share in beverages and household products, with 25.1% and 24.4%, respectively, while food and staples retailing, and food products account for a double-digit allocation each (read: 5 ETFs to Buy This Holiday Season for Gift of Good Returns).
Consumer Staples Select Sector SPDR Fund is the most popular consumer staples ETF with AUM of $11.9 billion and average daily volume of 10.7 million shares. XLP charges 12 bps in fees per year and has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook.
Vanguard Consumer Staples ETF
Vanguard Consumer Staples ETF also targets the broad consumer staples by tracking the MSCI US Investable Market Consumer Staples 25/50 Index. The fund VDC holds 97 stocks in its basket, with Walmart occupying the second position, having 8.5% allocation. Vanguard Consumer Staples ETF is widely spread across household products, soft drinks, hypermarkets & supercenters, and packaged foods & meats that make up for a double-digit allocation each.
Vanguard Consumer Staples ETF manages a $6.2 billion asset base and charges a fee of 10 bps per year. VDC trades in a good volume of around 80,000 shares per day on average and has a Zacks ETF Rank #3 with a Medium risk outlook.
Fidelity MSCI Consumer Staples Index ETF
Fidelity MSCI Consumer Staples Index ETF tracks the MSCI USA IMI Consumer Staples Index, holding 103 stocks in its basket. Of these, Walmart takes the second spot with 8.3% share in FSTA. Fidelity MSCI Consumer Staples Index ETF is widely diversified across food and staples retailing, beverages, household products, and food products with double-digit exposure each.
Fidelity MSCI Consumer Staples Index ETF has amassed $840.2 million in its asset base while trading in a moderate volume of around 79,000 shares a day on average. FSTA charges 8 bps in annual fees from investors and has a Zacks ETF Rank #3 with a Medium risk outlook.
iShares Evolved U.S. Discretionary Spending ETF
iShares Evolved U.S. Discretionary Spending ETF is an actively managed ETF that employs data science techniques to identify companies with exposure to the discretionary spending sector. It follows the Cboe BZX formerly known as BAT and holds 205 stocks in its basket. Walmart occupies the fourth position with 5.2% share. IEDI is dominated by retailing with half of the portfolio while consumer services and food & staples retailing round off the next two with double-digit exposure each (read: U.S. Inflation at a 30-Year High: 5 Sector ETFs to Win).
iShares Evolved U.S. Discretionary Spending ETF has accumulated $26.2 million in its asset base and charges 18 bps in fees per year. Volume is paltry for IEDI as it exchanges 5,000 shares a day, on average.