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Walmart (WMT) Dips More Than Broader Markets: What You Should Know

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Walmart (WMT - Free Report) closed the most recent trading day at $130.95, moving -0.27% from the previous trading session. This move lagged the S&P 500's daily loss of 0.21%. Meanwhile, the Dow lost 0.43%, and the Nasdaq, a tech-heavy index, added 0.01%.

Prior to today's trading, shares of the world's largest retailer had lost 1.18% over the past month. This has was narrower than the Retail-Wholesale sector's loss of 9.13% and the S&P 500's loss of 9.7% in that time.

Walmart will be looking to display strength as it nears its next earnings release. On that day, Walmart is projected to report earnings of $1.31 per share, which would represent a year-over-year decline of 9.66%. Meanwhile, our latest consensus estimate is calling for revenue of $147.24 billion, up 4.78% from the prior-year quarter.

WMT's full-year Zacks Consensus Estimates are calling for earnings of $5.84 per share and revenue of $600.2 billion. These results would represent year-over-year changes of -9.6% and +4.79%, respectively.

Any recent changes to analyst estimates for Walmart 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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.1% higher. Walmart is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, Walmart is currently trading at a Forward P/E ratio of 22.48. Its industry sports an average Forward P/E of 11.14, so we one might conclude that Walmart is trading at a premium comparatively.

It is also worth noting that WMT currently has a PEG ratio of 4.09. 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. WMT's industry had an average PEG ratio of 1.61 as of yesterday's close.

The Retail - Supermarkets industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 76, putting it in the top 31% 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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