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Walmart (WMT) Gains But Lags Market: What You Should Know
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Walmart (WMT - Free Report) closed at $125.32 in the latest trading session, marking a +0.15% move from the prior day. This change lagged the S&P 500's 1.5% gain on the day. Elsewhere, the Dow gained 1.12%, while the tech-heavy Nasdaq added 0.16%.
Coming into today, shares of the world's largest retailer had gained 2.31% in the past month. In that same time, the Retail-Wholesale sector lost 3.84%, while the S&P 500 lost 6.54%.
Walmart will be looking to display strength as it nears its next earnings release, which is expected to be August 16, 2022. In that report, analysts expect Walmart to post earnings of $1.82 per share. This would mark year-over-year growth of 2.25%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $148.57 billion, up 5.33% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $6.40 per share and revenue of $594.87 billion, which would represent changes of -0.93% and +3.86%, respectively, from the prior year.
Any recent changes to analyst estimates for Walmart should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Walmart currently has a Zacks Rank of #4 (Sell).
In terms of valuation, Walmart is currently trading at a Forward P/E ratio of 19.54. This valuation marks a premium compared to its industry's average Forward P/E of 11.04.
We can also see that WMT currently has a PEG ratio of 3.55. 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 1.79 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 242, which puts it in the bottom 4% 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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Walmart (WMT) Gains But Lags Market: What You Should Know
Walmart (WMT - Free Report) closed at $125.32 in the latest trading session, marking a +0.15% move from the prior day. This change lagged the S&P 500's 1.5% gain on the day. Elsewhere, the Dow gained 1.12%, while the tech-heavy Nasdaq added 0.16%.
Coming into today, shares of the world's largest retailer had gained 2.31% in the past month. In that same time, the Retail-Wholesale sector lost 3.84%, while the S&P 500 lost 6.54%.
Walmart will be looking to display strength as it nears its next earnings release, which is expected to be August 16, 2022. In that report, analysts expect Walmart to post earnings of $1.82 per share. This would mark year-over-year growth of 2.25%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $148.57 billion, up 5.33% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $6.40 per share and revenue of $594.87 billion, which would represent changes of -0.93% and +3.86%, respectively, from the prior year.
Any recent changes to analyst estimates for Walmart should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Walmart currently has a Zacks Rank of #4 (Sell).
In terms of valuation, Walmart is currently trading at a Forward P/E ratio of 19.54. This valuation marks a premium compared to its industry's average Forward P/E of 11.04.
We can also see that WMT currently has a PEG ratio of 3.55. 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 1.79 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 242, which puts it in the bottom 4% 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.