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

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Walmart (WMT - Free Report) closed the most recent trading day at $107.27, moving +1.37% from the previous trading session. This move outpaced the S&P 500's daily gain of 1.3%. At the same time, the Dow added 1.21%, and the tech-heavy Nasdaq gained 1.39%.

Heading into today, shares of the world's largest retailer had lost 6.12% over the past month, outpacing the Retail-Wholesale sector's loss of 6.28% and lagging the S&P 500's loss of 4.84% in that time.

Wall Street will be looking for positivity from WMT as it approaches its next earnings report date. This is expected to be August 15, 2019. In that report, analysts expect WMT to post earnings of $1.21 per share. This would mark a year-over-year decline of 6.2%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $130.49 billion, up 1.92% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $4.84 per share and revenue of $526.69 billion, which would represent changes of -1.43% and +2.39%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for WMT. These revisions help to show the ever-changing nature of near-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.

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. The Zacks Consensus EPS estimate remained stagnant within the past month. WMT is currently a Zacks Rank #2 (Buy).

Valuation is also important, so investors should note that WMT has a Forward P/E ratio of 21.87 right now. Its industry sports an average Forward P/E of 12.85, so we one might conclude that WMT is trading at a premium comparatively.

It is also worth noting that WMT currently has a PEG ratio of 4.62. 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. Retail - Supermarkets stocks are, on average, holding a PEG ratio of 1.98 based on yesterday's closing prices.

The Retail - Supermarkets industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 83, putting it in the top 33% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

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


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