Yahoo Finance Walmart (WMT) Stock Sinks As Market Gains: What You Should Know
Walmart (WMT) closed at $67.88 in the latest trading session, marking a -0.6% move from the prior day. This change lagged the S&P 500's 0.09% gain on the day. On the other hand, the Dow registered a gain of 0.09%, and the technology-centric Nasdaq increased by 0.3%.
The world's largest retailer's stock has climbed by 5.19% in the past month, exceeding the Retail-Wholesale sector's gain of 1.99% and the S&P 500's gain of 3.38%.
Market participants will be closely following the financial results of Walmart in its upcoming release. It is anticipated that the company will report an EPS of $0.65, marking a 6.56% rise compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $168.38 billion, up 4.18% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $2.42 per share and a revenue of $675.38 billion, representing changes of +9.01% and +4.21%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Walmart. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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. Within the past 30 days, our consensus EPS projection has moved 0.05% higher. As of now, Walmart holds a Zacks Rank of #2 (Buy).
With respect to valuation, Walmart is currently being traded at a Forward P/E ratio of 28.18. Its industry sports an average Forward P/E of 12.12, so one might conclude that Walmart is trading at a premium comparatively.
It is also worth noting that WMT currently has a PEG ratio of 3.94. 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. As of the close of trade yesterday, the Retail - Supermarkets industry held an average PEG ratio of 1.74.
The Retail - Supermarkets industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 20, putting it in the top 8% 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.
To follow WMT in the coming trading sessions, be sure to utilize Zacks.com.
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Walmart Inc. (WMT) : Free Stock Analysis Report
