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Walmart (WMT) Rises As Market Takes a Dip: Key Facts

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Walmart (WMT - Free Report) closed the most recent trading day at $157.65, moving +0.05% from the previous trading session. The stock's change was more than the S&P 500's daily loss of 0.28%. At the same time, the Dow lost 0.06%, and the tech-heavy Nasdaq lost 0.56%.

The the stock of world's largest retailer has risen by 1.21% in the past month, lagging the Retail-Wholesale sector's gain of 6.15% and the S&P 500's gain of 5.24%.

Market participants will be closely following the financial results of Walmart in its upcoming release. On that day, Walmart is projected to report earnings of $1.63 per share, which would represent a year-over-year decline of 4.68%. Meanwhile, the latest consensus estimate predicts the revenue to be $170.25 billion, indicating a 3.78% increase compared to the same quarter of the previous year.

For the full year, the Zacks Consensus Estimates project earnings of $6.44 per share and a revenue of $644.94 billion, demonstrating changes of +2.38% and +5.51%, respectively, from the preceding year.

Investors should also take note of any recent adjustments to analyst estimates for Walmart. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.05% higher. At present, Walmart boasts a Zacks Rank of #3 (Hold).

Looking at its valuation, Walmart is holding a Forward P/E ratio of 24.45. This expresses a premium compared to the average Forward P/E of 16.02 of its industry.

It's also important to note that WMT currently trades at a PEG ratio of 3.34. 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. The Retail - Supermarkets was holding an average PEG ratio of 1.43 at yesterday's closing price.

The Retail - Supermarkets industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 67, this industry ranks in the top 27% of all industries, numbering over 250.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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