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

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Walmart (WMT - Free Report) closed at $123.76 in the latest trading session, marking a +0.67% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.01%. Elsewhere, the Dow lost 0.45%, while the tech-heavy Nasdaq added 0.78%.

WMT will be looking to display strength as it nears its next earnings release, which is expected to be May 19, 2020. In that report, analysts expect WMT to post earnings of $1.15 per share. This would mark year-over-year growth of 1.77%. Meanwhile, our latest consensus estimate is calling for revenue of $129.24 billion, up 4.29% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5 per share and revenue of $542.32 billion. These totals would mark changes of +1.42% and +3.5%, respectively, from last year.

Any recent changes to analyst estimates for WMT should also be noted by investors. These revisions help to show the ever-changing nature of near-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 2.08% lower within the past month. WMT currently has a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that WMT has a Forward P/E ratio of 24.58 right now. This valuation marks a premium compared to its industry's average Forward P/E of 12.19.

Investors should also note that WMT has a PEG ratio of 4.98 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 was holding an average PEG ratio of 2.4 at yesterday's closing price.

The Retail - Supermarkets industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 31, which puts it in the top 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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