In the latest trading session, Walmart (WMT) closed at $119.21, marking a -0.4% move from the previous day. This move lagged the S&P 500's daily gain of 0.45%. Elsewhere, the Dow gained 0.36%, while the tech-heavy Nasdaq added 0.52%.
Coming into today, shares of the world's largest retailer had lost 3.06% in the past month. In that same time, the Retail-Wholesale sector gained 7.8%, while the S&P 500 gained 2.08%.
Wall Street will be looking for positivity from WMT as it approaches its next earnings report date. In that report, analysts expect WMT to post earnings of $1.22 per share. This would mark a year-over-year decline of 3.94%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $133.97 billion, up 2.76% from the year-ago period.
WMT's full-year Zacks Consensus Estimates are calling for earnings of $4.93 per share and revenue of $545.78 billion. These results would represent year-over-year changes of 0% and +4.16%, respectively.
Investors should also note any recent changes to analyst estimates for WMT. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. WMT currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, WMT is holding a Forward P/E ratio of 24.26. Its industry sports an average Forward P/E of 18.79, so we one might conclude that WMT is trading at a premium comparatively.
We can also see that WMT currently has a PEG ratio of 4.58. 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. WMT's industry had an average PEG ratio of 2.54 as of yesterday's close.
The Retail - Supermarkets industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 184, which puts it in the bottom 28% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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