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Walmart (WMT) Gains As Market Dips: What You Should Know
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Walmart (WMT - Free Report) closed the most recent trading day at $127.61, moving +0.81% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.12%. Meanwhile, the Dow gained 0.09%, and the Nasdaq, a tech-heavy index, added 0.4%.
Heading into today, shares of the world's largest retailer had gained 0.94% over the past month, lagging the Retail-Wholesale sector's gain of 9.21% and the S&P 500's gain of 8.25% in that time.
Wall Street will be looking for positivity from Walmart as it approaches its next earnings report date. This is expected to be August 16, 2022. On that day, Walmart is projected to report earnings of $1.60 per share, which would represent a year-over-year decline of 10.11%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $151.41 billion, up 7.35% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.73 per share and revenue of $597.27 billion. These totals would mark changes of -11.3% and +4.28%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Walmart. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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. Over the past month, the Zacks Consensus EPS estimate has moved 11.27% lower. Walmart is currently sporting a Zacks Rank of #4 (Sell).
Valuation is also important, so investors should note that Walmart has a Forward P/E ratio of 22.11 right now. Its industry sports an average Forward P/E of 12.09, so we one might conclude that Walmart is trading at a premium comparatively.
Also, we should mention that WMT has a PEG ratio of 4.02. 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. The Retail - Supermarkets industry currently had an average PEG ratio of 1.8 as of yesterday's close.
The Retail - Supermarkets industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 173, putting it in the bottom 32% 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.
To follow WMT in the coming trading sessions, be sure to utilize Zacks.com.
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Walmart (WMT) Gains As Market Dips: What You Should Know
Walmart (WMT - Free Report) closed the most recent trading day at $127.61, moving +0.81% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.12%. Meanwhile, the Dow gained 0.09%, and the Nasdaq, a tech-heavy index, added 0.4%.
Heading into today, shares of the world's largest retailer had gained 0.94% over the past month, lagging the Retail-Wholesale sector's gain of 9.21% and the S&P 500's gain of 8.25% in that time.
Wall Street will be looking for positivity from Walmart as it approaches its next earnings report date. This is expected to be August 16, 2022. On that day, Walmart is projected to report earnings of $1.60 per share, which would represent a year-over-year decline of 10.11%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $151.41 billion, up 7.35% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.73 per share and revenue of $597.27 billion. These totals would mark changes of -11.3% and +4.28%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Walmart. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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. Over the past month, the Zacks Consensus EPS estimate has moved 11.27% lower. Walmart is currently sporting a Zacks Rank of #4 (Sell).
Valuation is also important, so investors should note that Walmart has a Forward P/E ratio of 22.11 right now. Its industry sports an average Forward P/E of 12.09, so we one might conclude that Walmart is trading at a premium comparatively.
Also, we should mention that WMT has a PEG ratio of 4.02. 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. The Retail - Supermarkets industry currently had an average PEG ratio of 1.8 as of yesterday's close.
The Retail - Supermarkets industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 173, putting it in the bottom 32% 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.
To follow WMT in the coming trading sessions, be sure to utilize Zacks.com.