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

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In the latest trading session, Walmart (WMT) closed at $132.54, marking a +0.37% move from the previous day. This move outpaced the S&P 500's daily loss of 0.28%. At the same time, the Dow lost 0.14%, and the tech-heavy Nasdaq lost 0.14%.

Heading into today, shares of the world's largest retailer had gained 7.68% over the past month, lagging the Retail-Wholesale sector's gain of 9.43% and the S&P 500's gain of 8.35% in that time.

Walmart will be looking to display strength as it nears its next earnings release, which is expected to be August 16, 2022. The company is expected to report EPS of $1.60, down 10.11% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $151.41 billion, up 7.35% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $5.73 per share and revenue of $597.27 billion, which would represent changes of -11.3% and +4.28%, respectively, from the prior year.

Any recent changes to analyst estimates for Walmart should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Over the past month, the Zacks Consensus EPS estimate has moved 11.27% lower. Walmart is holding a Zacks Rank of #4 (Sell) right now.

In terms of valuation, Walmart is currently trading at a Forward P/E ratio of 23.06. For comparison, its industry has an average Forward P/E of 11.89, which means Walmart is trading at a premium to the group.

Meanwhile, WMT's PEG ratio is currently 4.19. 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. Retail - Supermarkets stocks are, on average, holding a PEG ratio of 1.85 based on yesterday's closing prices.

The Retail - Supermarkets industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 227, putting it in the bottom 10% 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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