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

·3 min read

Walmart (WMT) closed the most recent trading day at $134.77, moving +0.91% from the previous trading session. This change outpaced the S&P 500's 1.71% loss on the day. Elsewhere, the Dow lost 1.7%, while the tech-heavy Nasdaq lost 0.18%.

Coming into today, shares of the world's largest retailer had lost 0.34% in the past month. In that same time, the Retail-Wholesale sector lost 7.43%, while the S&P 500 lost 8.68%.

Investors will be hoping for strength from Walmart as it approaches its next earnings release. On that day, Walmart is projected to report earnings of $1.31 per share, which would represent a year-over-year decline of 9.66%. Our most recent consensus estimate is calling for quarterly revenue of $147.24 billion, up 4.78% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.84 per share and revenue of $600.2 billion. These totals would mark changes of -9.6% and +4.79%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for Walmart. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.1% higher. Walmart currently has a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Walmart has a Forward P/E ratio of 22.86 right now. For comparison, its industry has an average Forward P/E of 11.61, which means Walmart is trading at a premium to the group.

We can also see that WMT currently has a PEG ratio of 4.16. 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 was holding an average PEG ratio of 1.76 at yesterday's closing price.

The Retail - Supermarkets industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 151, putting it in the bottom 41% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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