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Walmart (WMT) Exceeds Market Returns: Some Facts to Consider
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Walmart (WMT - Free Report) closed the latest trading day at $59.43, indicating a +0.46% change from the previous session's end. The stock's performance was ahead of the S&P 500's daily gain of 0.11%. Meanwhile, the Dow lost 0.11%, and the Nasdaq, a tech-heavy index, added 0.23%.
The the stock of world's largest retailer has fallen by 1.47% in the past month, lagging the Retail-Wholesale sector's gain of 0.04% and the S&P 500's gain of 1.5%.
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 $0.52 per share, which would represent year-over-year growth of 6.12%. At the same time, our most recent consensus estimate is projecting a revenue of $158.89 billion, reflecting a 4.33% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $2.36 per share and a revenue of $671.5 billion, demonstrating changes of +6.31% and +3.61%, respectively, from the preceding year.
Investors should also note any recent changes to analyst estimates for Walmart. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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 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 shifted 0.14% upward. As of now, Walmart holds a Zacks Rank of #3 (Hold).
In terms of valuation, Walmart is currently trading at a Forward P/E ratio of 25.11. This indicates a premium in contrast to its industry's Forward P/E of 12.8.
One should further note that WMT currently holds a PEG ratio of 3.86. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As the market closed yesterday, the Retail - Supermarkets industry was having an average PEG ratio of 1.25.
The Retail - Supermarkets industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 45, placing it within the top 18% of over 250 industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Walmart (WMT) Exceeds Market Returns: Some Facts to Consider
Walmart (WMT - Free Report) closed the latest trading day at $59.43, indicating a +0.46% change from the previous session's end. The stock's performance was ahead of the S&P 500's daily gain of 0.11%. Meanwhile, the Dow lost 0.11%, and the Nasdaq, a tech-heavy index, added 0.23%.
The the stock of world's largest retailer has fallen by 1.47% in the past month, lagging the Retail-Wholesale sector's gain of 0.04% and the S&P 500's gain of 1.5%.
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 $0.52 per share, which would represent year-over-year growth of 6.12%. At the same time, our most recent consensus estimate is projecting a revenue of $158.89 billion, reflecting a 4.33% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $2.36 per share and a revenue of $671.5 billion, demonstrating changes of +6.31% and +3.61%, respectively, from the preceding year.
Investors should also note any recent changes to analyst estimates for Walmart. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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 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 shifted 0.14% upward. As of now, Walmart holds a Zacks Rank of #3 (Hold).
In terms of valuation, Walmart is currently trading at a Forward P/E ratio of 25.11. This indicates a premium in contrast to its industry's Forward P/E of 12.8.
One should further note that WMT currently holds a PEG ratio of 3.86. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As the market closed yesterday, the Retail - Supermarkets industry was having an average PEG ratio of 1.25.
The Retail - Supermarkets industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 45, placing it within the top 18% of over 250 industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.