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

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Walmart (WMT - Free Report) closed at $121.83 in the latest trading session, marking a -0.13% move from the prior day. This change lagged the S&P 500's 3.41% gain on the day. At the same time, the Dow added 3.44%, and the tech-heavy Nasdaq gained 2.58%.

Prior to today's trading, shares of the world's largest retailer had gained 1.84% over the past month. This has outpaced the Retail-Wholesale sector's loss of 5.26% and the S&P 500's loss of 10.46% 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 May 19, 2020. On that day, WMT is projected to report earnings of $1.15 per share, which would represent year-over-year growth of 1.77%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $127.01 billion, up 2.49% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $5.09 per share and revenue of $542.29 billion, which would represent changes of +3.25% and +3.5%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for WMT. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 has moved 0.3% lower within the past month. WMT is currently a Zacks Rank #3 (Hold).

Valuation is also important, so investors should note that WMT has a Forward P/E ratio of 23.97 right now. This valuation marks a premium compared to its industry's average Forward P/E of 12.

Investors should also note that WMT has a PEG ratio of 4.85 right now. 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 industry currently had an average PEG ratio of 2.19 as of yesterday's close.

The Retail - Supermarkets industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 91, putting it in the top 36% 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.

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


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