Back to top

Walmart (WMT) Gains But Lags Market: What You Should Know

Read MoreHide Full Article

Walmart (WMT - Free Report) closed at $112.32 in the latest trading session, marking a +0.65% move from the prior day. This change lagged the S&P 500's 0.77% gain on the day. Meanwhile, the Dow gained 0.67%, and the Nasdaq, a tech-heavy index, added 0.75%.

Heading into today, shares of the world's largest retailer had gained 8.81% over the past month, lagging the Retail-Wholesale sector's gain of 9.72% and outpacing the S&P 500's gain of 8.19% in that time.

Wall Street will be looking for positivity from WMT as it approaches its next earnings report date. The company is expected to report EPS of $1.21, down 6.2% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $130.49 billion, up 1.92% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $4.83 per share and revenue of $526.69 billion, which would represent changes of -1.63% and +2.39%, respectively, from the prior year.

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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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. Within the past 30 days, our consensus EPS projection has moved 0.51% higher. WMT currently has a Zacks Rank of #2 (Buy).

Investors should also note WMT's current valuation metrics, including its Forward P/E ratio of 23.08. This valuation marks a premium compared to its industry's average Forward P/E of 14.01.

Also, we should mention that WMT has a PEG ratio of 4.88. 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 1.52 as of yesterday's close.

The Retail - Supermarkets industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 53, putting it in the top 21% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


In-Depth Zacks Research for the Tickers Above


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


Walmart Inc. (WMT) - free report >>

Published in