Walmart (WMT - Free Report) closed the most recent trading day at $98.69, moving -0.54% from the previous trading session. This move was narrower than the S&P 500's daily loss of 0.61%. Meanwhile, the Dow lost 0.72%, and the Nasdaq, a tech-heavy index, lost 0.56%.
Heading into today, shares of the world's largest retailer had gained 0.76% over the past month, lagging the Retail-Wholesale sector's gain of 6.68% and the S&P 500's gain of 5.68% in that time.
Investors will be hoping for strength from WMT as it approaches its next earnings release. The company is expected to report EPS of $1.02, down 10.53% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $125.24 billion, up 2.08% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.75 per share and revenue of $528.21 billion, which would represent changes of -3.26% and +2.68%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for WMT. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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.
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 remained stagnant within the past month. WMT currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, WMT is holding a Forward P/E ratio of 20.87. For comparison, its industry has an average Forward P/E of 14.63, which means WMT is trading at a premium to the group.
It is also worth noting that WMT currently has a PEG ratio of 4.57. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Retail - Supermarkets was holding an average PEG ratio of 1.37 at yesterday's closing price.
The Retail - Supermarkets industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 22, which puts it in the top 9% 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.
To follow WMT in the coming trading sessions, be sure to utilize Zacks.com.