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

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In the latest trading session, Walmart (WMT - Free Report) closed at $118.93, marking a +1.15% move from the previous day. This change outpaced the S&P 500's 0.91% gain on the day. Elsewhere, the Dow gained 0.7%, while the tech-heavy Nasdaq added 1.02%.

Prior to today's trading, shares of the world's largest retailer had gained 1.32% over the past month. This has outpaced the Retail-Wholesale sector's loss of 4.73% and the S&P 500's loss of 2.74% in that time.

Wall Street will be looking for positivity from WMT as it approaches its next earnings report date. On that day, WMT is projected to report earnings of $1.09 per share, which would represent year-over-year growth of 0.93%. Meanwhile, our latest consensus estimate is calling for revenue of $128.99 billion, up 3.28% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.92 per share and revenue of $526.97 billion. These totals would mark changes of +0.2% and +2.44%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for WMT. These revisions help to show the ever-changing nature of near-term business trends. 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. 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. Within the past 30 days, our consensus EPS projection has moved 0.17% higher. WMT is currently sporting a Zacks Rank of #2 (Buy).

In terms of valuation, WMT is currently trading at a Forward P/E ratio of 23.92. Its industry sports an average Forward P/E of 13.16, 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 5.06. 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 1.81 at yesterday's closing price.

The Retail - Supermarkets industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 224, putting it in the bottom 13% 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.

To follow WMT in the coming trading sessions, be sure to utilize Zacks.com.


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