U.S. Markets closed

Walmart (WMT) Dips More Than Broader Markets: What You Should Know

Zacks Equity Research

Walmart (WMT) closed the most recent trading day at $117.89, moving -0.88% from the previous trading session. This change lagged the S&P 500's 0.71% loss on the day. Meanwhile, the Dow lost 0.81%, and the Nasdaq, a tech-heavy index, lost 0.79%.

Coming into today, shares of the world's largest retailer had gained 0.24% in the past month. In that same time, the Retail-Wholesale sector gained 4.83%, while the S&P 500 gained 4.77%.

Investors will be hoping for strength from WMT as it approaches its next earnings release, which is expected to be February 18, 2020. On that day, WMT is projected to report earnings of $1.44 per share, which would represent year-over-year growth of 2.13%. Meanwhile, our latest consensus estimate is calling for revenue of $142.66 billion, up 2.78% from the prior-year quarter.

WMT's full-year Zacks Consensus Estimates are calling for earnings of $4.98 per share and revenue of $525.80 billion. These results would represent year-over-year changes of +1.43% and +2.21%, respectively.

It is also important to note the 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. 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 0.11% higher 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 23.87 right now. Its industry sports an average Forward P/E of 14.72, so we one might conclude that WMT is trading at a premium comparatively.

Also, we should mention that WMT has a PEG ratio of 4.82. 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. WMT's industry had an average PEG ratio of 2.63 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 84, which puts it in the top 33% 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.

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

Click to get this free report Walmart Inc. (WMT) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research