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Walmart (WMT) Stock Drops Despite Market Gains: Important Facts to Note
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Walmart (WMT - Free Report) closed at $122.49 in the latest trading session, marking a -3.39% move from the prior day. The stock's performance was behind the S&P 500's daily gain of 0.08%. Elsewhere, the Dow lost 0.18%, while the tech-heavy Nasdaq added 0.1%.
The world's largest retailer's stock has climbed by 1.97% in the past month, exceeding the Retail-Wholesale sector's loss of 2.61% and the S&P 500's loss of 1.74%.
The upcoming earnings release of Walmart will be of great interest to investors. The company is forecasted to report an EPS of $0.65, showcasing a 6.56% upward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $174.05 billion, indicating a 5.1% increase compared to the same quarter of the previous year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $2.89 per share and a revenue of $748.75 billion, signifying shifts of +9.47% and +4.99%, respectively, from the last year.
Investors should also pay attention to any latest changes in analyst estimates for Walmart. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
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.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Currently, Walmart is carrying a Zacks Rank of #3 (Hold).
From a valuation perspective, Walmart is currently exchanging hands at a Forward P/E ratio of 43.89. Its industry sports an average Forward P/E of 14.72, so one might conclude that Walmart is trading at a premium comparatively.
We can additionally observe that WMT currently boasts a PEG ratio of 4.72. 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. Retail - Supermarkets stocks are, on average, holding a PEG ratio of 2.22 based on yesterday's closing prices.
The Retail - Supermarkets industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 83, which puts it in the top 35% 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Walmart (WMT) Stock Drops Despite Market Gains: Important Facts to Note
Walmart (WMT - Free Report) closed at $122.49 in the latest trading session, marking a -3.39% move from the prior day. The stock's performance was behind the S&P 500's daily gain of 0.08%. Elsewhere, the Dow lost 0.18%, while the tech-heavy Nasdaq added 0.1%.
The world's largest retailer's stock has climbed by 1.97% in the past month, exceeding the Retail-Wholesale sector's loss of 2.61% and the S&P 500's loss of 1.74%.
The upcoming earnings release of Walmart will be of great interest to investors. The company is forecasted to report an EPS of $0.65, showcasing a 6.56% upward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $174.05 billion, indicating a 5.1% increase compared to the same quarter of the previous year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $2.89 per share and a revenue of $748.75 billion, signifying shifts of +9.47% and +4.99%, respectively, from the last year.
Investors should also pay attention to any latest changes in analyst estimates for Walmart. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
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.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Currently, Walmart is carrying a Zacks Rank of #3 (Hold).
From a valuation perspective, Walmart is currently exchanging hands at a Forward P/E ratio of 43.89. Its industry sports an average Forward P/E of 14.72, so one might conclude that Walmart is trading at a premium comparatively.
We can additionally observe that WMT currently boasts a PEG ratio of 4.72. 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. Retail - Supermarkets stocks are, on average, holding a PEG ratio of 2.22 based on yesterday's closing prices.
The Retail - Supermarkets industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 83, which puts it in the top 35% 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.