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Walmart (WMT) Stock Moves -0.64%: What You Should Know

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Walmart (WMT - Free Report) closed at $139.52 in the latest trading session, marking a -0.64% move from the prior day. This move was narrower than the S&P 500's daily loss of 1.65%. Elsewhere, the Dow lost 1.63%, while the tech-heavy Nasdaq lost 6.65%.

Heading into today, shares of the world's largest retailer had lost 4.69% over the past month, lagging the Retail-Wholesale sector's loss of 1.62% and the S&P 500's gain of 0.3% 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 year-over-year growth of 0.77%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $148.6 billion, up 4.97% from the year-ago period.

WMT's full-year Zacks Consensus Estimates are calling for earnings of $6.10 per share and revenue of $631.16 billion. These results would represent year-over-year changes of -3.02% and +3.25%, respectively.

Investors should also note any recent changes to analyst estimates for Walmart. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

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. Over the past month, the Zacks Consensus EPS estimate has moved 6.24% lower. Walmart is holding a Zacks Rank of #4 (Sell) right now.

Investors should also note Walmart's current valuation metrics, including its Forward P/E ratio of 23.02. This represents a premium compared to its industry's average Forward P/E of 12.68.

It is also worth noting that WMT currently has a PEG ratio of 4.19. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Retail - Supermarkets was holding an average PEG ratio of 1.78 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 32, which puts it in the top 13% 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.

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