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Walmart (WMT) Gains As Market Dips: What You Should Know
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In the latest market close, Walmart (WMT - Free Report) reached $170.30, with a +0.6% movement compared to the previous day. The stock exceeded the S&P 500, which registered a loss of 0.1% for the day. Meanwhile, the Dow gained 0.33%, and the Nasdaq, a tech-heavy index, lost 0.3%.
The the stock of world's largest retailer has risen by 4.93% in the past month, lagging the Retail-Wholesale sector's gain of 6.89% and the S&P 500's gain of 5.78%.
The upcoming earnings release of Walmart will be of great interest to investors. The company's earnings report is expected on February 20, 2024. In that report, analysts expect Walmart to post earnings of $1.63 per share. This would mark a year-over-year decline of 4.68%. At the same time, our most recent consensus estimate is projecting a revenue of $170.33 billion, reflecting a 3.83% rise from the equivalent quarter last year.
It is also important to note the recent changes to analyst estimates for Walmart. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. The Zacks Consensus EPS estimate has moved 0.12% lower within the past month. As of now, Walmart holds a Zacks Rank of #4 (Sell).
In terms of valuation, Walmart is currently trading at a Forward P/E ratio of 24.24. This indicates a premium in contrast to its industry's Forward P/E of 12.57.
It's also important to note that WMT currently trades at a PEG ratio of 3.31. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Retail - Supermarkets industry had an average PEG ratio of 1.01.
The Retail - Supermarkets industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 83, putting it in the top 33% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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
In the latest market close, Walmart (WMT - Free Report) reached $170.30, with a +0.6% movement compared to the previous day. The stock exceeded the S&P 500, which registered a loss of 0.1% for the day. Meanwhile, the Dow gained 0.33%, and the Nasdaq, a tech-heavy index, lost 0.3%.
The the stock of world's largest retailer has risen by 4.93% in the past month, lagging the Retail-Wholesale sector's gain of 6.89% and the S&P 500's gain of 5.78%.
The upcoming earnings release of Walmart will be of great interest to investors. The company's earnings report is expected on February 20, 2024. In that report, analysts expect Walmart to post earnings of $1.63 per share. This would mark a year-over-year decline of 4.68%. At the same time, our most recent consensus estimate is projecting a revenue of $170.33 billion, reflecting a 3.83% rise from the equivalent quarter last year.
It is also important to note the recent changes to analyst estimates for Walmart. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. The Zacks Consensus EPS estimate has moved 0.12% lower within the past month. As of now, Walmart holds a Zacks Rank of #4 (Sell).
In terms of valuation, Walmart is currently trading at a Forward P/E ratio of 24.24. This indicates a premium in contrast to its industry's Forward P/E of 12.57.
It's also important to note that WMT currently trades at a PEG ratio of 3.31. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Retail - Supermarkets industry had an average PEG ratio of 1.01.
The Retail - Supermarkets industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 83, putting it in the top 33% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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.