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Walmart (WMT) Stock Moves -1.16%: What You Should Know

Zacks

In the latest trading session, Walmart (WMT) closed at $118.32, marking a -1.16% move from the previous day. This change was narrower than the S&P 500′s 2.42% loss on the day. At the same time, the Dow lost 2.84%, and the tech-heavy Nasdaq lost 2.59%.

Heading into today, shares of the world’s largest retailer had lost 3.22% over the past month, lagging the Retail-Wholesale sector’s gain of 7.41% and the S&P 500′s gain of 4.5% in that time.

Wall Street will be looking for positivity from WMT as it approaches its next earnings report date. On that day, WMT is projected to report earnings of $1.22 per share, which would represent a year-over-year decline of 3.94%. Our most recent consensus estimate is calling for quarterly revenue of $133.97 billion, up 2.76% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.93 per share and revenue of $545.78 billion. These totals would mark changes of 0% and +4.16%, respectively, from last year.


Any recent changes to analyst estimates for WMT should also be noted by investors. 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 shows that these estimate changes are directly correlated with near-term stock prices. 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.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.1% higher. WMT is currently sporting a Zacks Rank of #3 (Hold).

Digging into valuation, WMT currently has a Forward P/E ratio of 24.27. For comparison, its industry has an average Forward P/E of 17.56, which means WMT is trading at a premium to the group.

Meanwhile, WMT’s PEG ratio is currently 4.58. 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. Retail – Supermarkets stocks are, on average, holding a PEG ratio of 2.24 based on yesterday’s closing prices.

The Retail – Supermarkets industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 104, putting it in the top 41% 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.

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


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Zacks Investment Research
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