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

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In the latest trading session, Walmart (WMT) closed at $132.02, marking a -0.14% move from the previous day. This change lagged the S&P 500's 0.13% gain on the day. At the same time, the Dow added 0.28%, and the tech-heavy Nasdaq lost 0.06%.

Coming into today, shares of the world's largest retailer had gained 6.86% in the past month. In that same time, the Retail-Wholesale sector gained 8.19%, while the S&P 500 gained 5.55%.

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 $1.82, up 2.25% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $148.41 billion, up 5.22% from the year-ago period.

WMT's full-year Zacks Consensus Estimates are calling for earnings of $6.40 per share and revenue of $594.6 billion. These results would represent year-over-year changes of -0.93% and +3.81%, respectively.

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

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Walmart is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, Walmart currently has a Forward P/E ratio of 20.64. This represents a premium compared to its industry's average Forward P/E of 11.1.

We can also see that WMT currently has a PEG ratio of 3.75. 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. The Retail - Supermarkets was holding an average PEG ratio of 1.72 at yesterday's closing price.

The Retail - Supermarkets industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 230, which puts it in the bottom 9% 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.

To follow WMT in the coming trading sessions, be sure to utilize Zacks.com.

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