Back to top

Walmart (WMT) Stock Sinks As Market Gains: What You Should Know

Read MoreHide Full Article

In the latest trading session, Walmart (WMT - Free Report) closed at $95.86, marking a -0.25% move from the previous day. This move lagged the S&P 500's daily gain of 0.01%. Meanwhile, the Dow lost 0.09%, and the Nasdaq, a tech-heavy index, added 0.26%.

Coming into today, shares of the world's largest retailer had gained 8.27% in the past month. In that same time, the Retail-Wholesale sector gained 5.44%, while the S&P 500 gained 3.23%.

Investors will be hoping for strength from WMT as it approaches its next earnings release, which is expected to be November 15, 2018. On that day, WMT is projected to report earnings of $1.03 per share, which would represent year-over-year growth of 3%. Meanwhile, our latest consensus estimate is calling for revenue of $124.18 billion, up 0.81% from the prior-year quarter.

WMT's full-year Zacks Consensus Estimates are calling for earnings of $4.78 per share and revenue of $513.64 billion. These results would represent year-over-year changes of +8.14% and +2.66%, respectively.

Any recent changes to analyst estimates for WMT should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 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 moved 1.64% lower. WMT is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, WMT is currently trading at a Forward P/E ratio of 20.12. Its industry sports an average Forward P/E of 17.25, so we one might conclude that WMT is trading at a premium comparatively.

Meanwhile, WMT's PEG ratio is currently 3.39. 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 industry currently had an average PEG ratio of 2.23 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 168, which puts it in the bottom 34% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.




In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


Walmart Inc. (WMT) - free report >>

More from Zacks Tale of the Tape

You May Like