In the latest trading session, Walmart (WMT) closed at $90.61, marking a +1.13% move from the previous day. This change outpaced the S&P 500's 3.46% loss on the day. Elsewhere, the Dow saw a downswing of 2.5%, while the tech-heavy Nasdaq depreciated by 4.31%.
Prior to today's trading, shares of the world's largest retailer had gained 5.16% over the past month. This has outpaced the Retail-Wholesale sector's loss of 5.53% and the S&P 500's loss of 5.27% in that time.
Investors will be eagerly watching for the performance of Walmart in its upcoming earnings disclosure. The company is forecasted to report an EPS of $0.59, showcasing a 1.67% downward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $165.95 billion, up 2.75% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $2.61 per share and revenue of $703.57 billion, which would represent changes of +3.98% and +3.32%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Walmart. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 1.02% downward. At present, Walmart boasts a Zacks Rank of #4 (Sell).
Looking at its valuation, Walmart is holding a Forward P/E ratio of 31.34. This expresses a premium compared to the average Forward P/E of 12.91 of its industry.
Investors should also note that WMT has a PEG ratio of 4.37 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Retail - Supermarkets was holding an average PEG ratio of 2.1 at yesterday's closing price.
The Retail - Supermarkets industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 186, putting it in the bottom 25% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Walmart Inc. (WMT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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