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Walmart (WMT) Gains But Lags Market: What You Should Know
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Walmart (WMT - Free Report) closed the most recent trading day at $155, moving +0.23% from the previous trading session. This change lagged the S&P 500's 0.74% gain on the day. At the same time, the Dow added 0.25%, and the tech-heavy Nasdaq gained 11.47%.
Coming into today, shares of the world's largest retailer had lost 0.42% in the past month. In that same time, the Retail-Wholesale sector gained 3.93%, while the S&P 500 gained 3.34%.
Walmart will be looking to display strength as it nears its next earnings release. In that report, analysts expect Walmart to post earnings of $1.68 per share. This would mark a year-over-year decline of 5.08%. Meanwhile, our latest consensus estimate is calling for revenue of $159.34 billion, up 4.24% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $6.21 per share and revenue of $636.67 billion, which would represent changes of -1.27% and +4.15%, respectively, from the prior year.
Any recent changes to analyst estimates for Walmart should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Walmart is currently a Zacks Rank #2 (Buy).
Digging into valuation, Walmart currently has a Forward P/E ratio of 24.9. For comparison, its industry has an average Forward P/E of 12.95, which means Walmart is trading at a premium to the group.
Also, we should mention that WMT has a PEG ratio of 4.53. 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. WMT's industry had an average PEG ratio of 1.83 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 23, which puts it in the top 10% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Walmart (WMT) Gains But Lags Market: What You Should Know
Walmart (WMT - Free Report) closed the most recent trading day at $155, moving +0.23% from the previous trading session. This change lagged the S&P 500's 0.74% gain on the day. At the same time, the Dow added 0.25%, and the tech-heavy Nasdaq gained 11.47%.
Coming into today, shares of the world's largest retailer had lost 0.42% in the past month. In that same time, the Retail-Wholesale sector gained 3.93%, while the S&P 500 gained 3.34%.
Walmart will be looking to display strength as it nears its next earnings release. In that report, analysts expect Walmart to post earnings of $1.68 per share. This would mark a year-over-year decline of 5.08%. Meanwhile, our latest consensus estimate is calling for revenue of $159.34 billion, up 4.24% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $6.21 per share and revenue of $636.67 billion, which would represent changes of -1.27% and +4.15%, respectively, from the prior year.
Any recent changes to analyst estimates for Walmart should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Walmart is currently a Zacks Rank #2 (Buy).
Digging into valuation, Walmart currently has a Forward P/E ratio of 24.9. For comparison, its industry has an average Forward P/E of 12.95, which means Walmart is trading at a premium to the group.
Also, we should mention that WMT has a PEG ratio of 4.53. 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. WMT's industry had an average PEG ratio of 1.83 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 23, which puts it in the top 10% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.