In the latest trading session, Walmart (WMT) closed at $140.50, marking a -1.8% move from the previous day. This change lagged the S&P 500's 0.96% loss on the day. At the same time, the Dow lost 0.48%, and the tech-heavy Nasdaq lost 2.22%.
Coming into today, shares of the world's largest retailer had lost 1.01% in the past month. In that same time, the Retail-Wholesale sector lost 4.08%, while the S&P 500 lost 4.04%.
Investors will be hoping for strength from WMT as it approaches its next earnings release. The company is expected to report EPS of $1.18, up 1.72% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $131.74 billion, up 2.93% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.35 per share and revenue of $551.08 billion. These totals would mark changes of +8.52% and +5.18%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for WMT. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.28% higher within the past month. WMT currently has a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that WMT has a Forward P/E ratio of 26.75 right now. For comparison, its industry has an average Forward P/E of 16.38, which means WMT is trading at a premium to the group.
It is also worth noting that WMT currently has a PEG ratio of 4.75. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Retail - Supermarkets industry currently had an average PEG ratio of 2.42 as of yesterday's close.
The Retail - Supermarkets industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 73, which puts it in the top 29% 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.
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Walmart Inc. (WMT) : Free Stock Analysis Report
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