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

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Zacks Equity Research
·3 min read
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Walmart (WMT) closed the most recent trading day at $145.51, moving +1.48% from the previous trading session. This change outpaced the S&P 500's 1.39% gain on the day. At the same time, the Dow added 0.83%, and the tech-heavy Nasdaq gained 1.97%.

Coming into today, shares of the world's largest retailer had lost 0.56% in the past month. In that same time, the Retail-Wholesale sector lost 0.97%, while the S&P 500 gained 2.58%.

Investors will be hoping for strength from WMT as it approaches its next earnings release. On that day, WMT is projected to report earnings of $1.47 per share, which would represent year-over-year growth of 6.52%. Meanwhile, our latest consensus estimate is calling for revenue of $146.06 billion, up 3.1% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $5.55 per share and revenue of $554.69 billion, which would represent changes of +12.58% and +5.86%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for WMT. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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.

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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. WMT is currently a Zacks Rank #3 (Hold).

Investors should also note WMT's current valuation metrics, including its Forward P/E ratio of 26.08. This valuation marks a premium compared to its industry's average Forward P/E of 20.09.

Also, we should mention that WMT has a PEG ratio of 4.74. 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. WMT's industry had an average PEG ratio of 2.81 as of yesterday's close.

The Retail - Supermarkets industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 80, putting it in the top 32% 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.

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


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