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

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Walmart (WMT - Free Report) closed the most recent trading day at $117.57, moving -0.04% from the previous trading session. This change lagged the S&P 500's 0.37% gain on the day. Elsewhere, the Dow gained 0.42%, while the tech-heavy Nasdaq added 0.56%.

Heading into today, shares of the world's largest retailer had gained 0.82% over the past month, lagging the Retail-Wholesale sector's gain of 2.79% and the S&P 500's gain of 4.42% in that time.

WMT will be looking to display strength as it nears its next earnings release, which is expected to be November 14, 2019. In that report, analysts expect WMT to post earnings of $1.09 per share. This would mark year-over-year growth of 0.93%. Our most recent consensus estimate is calling for quarterly revenue of $128.99 billion, up 3.28% from the year-ago period.

WMT's full-year Zacks Consensus Estimates are calling for earnings of $4.92 per share and revenue of $526.97 billion. These results would represent year-over-year changes of +0.2% and +2.44%, respectively.

Investors should also note any 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.

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 has moved 0.04% higher within the past month. 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 23.92. This represents a premium compared to its industry's average Forward P/E of 14.08.

Investors should also note that WMT has a PEG ratio of 5.06 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Retail - Supermarkets was holding an average PEG ratio of 2.23 at yesterday's closing price.

The Retail - Supermarkets industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 149, putting it in the bottom 42% 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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