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Walmart (WMT) Gains But Lags Market: What You Should Know
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Walmart (WMT - Free Report) closed at $129.56 in the latest trading session, marking a +0.61% move from the prior day. This move lagged the S&P 500's daily gain of 2.76%. At the same time, the Dow added 2.43%, and the tech-heavy Nasdaq gained 0.13%.
Heading into today, shares of the world's largest retailer had gained 8.86% over the past month, outpacing the Retail-Wholesale sector's gain of 6.16% and the S&P 500's gain of 4.44% in that time.
Investors will be hoping for strength from Walmart as it approaches its next earnings release, which is expected to be August 16, 2022. On that day, Walmart is projected to report earnings of $1.82 per share, which would represent year-over-year growth of 2.25%. Meanwhile, our latest consensus estimate is calling for revenue of $148.41 billion, up 5.22% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $6.40 per share and revenue of $594.6 billion, which would represent changes of -0.93% and +3.81%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Walmart. These revisions help to show the ever-changing nature of near-term business trends. 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. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Walmart is currently sporting a Zacks Rank of #4 (Sell).
In terms of valuation, Walmart is currently trading at a Forward P/E ratio of 20.11. Its industry sports an average Forward P/E of 11.1, so we one might conclude that Walmart is trading at a premium comparatively.
Meanwhile, WMT's PEG ratio is currently 3.66. 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 industry currently had an average PEG ratio of 1.74 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 238, which puts it in the bottom 6% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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 $129.56 in the latest trading session, marking a +0.61% move from the prior day. This move lagged the S&P 500's daily gain of 2.76%. At the same time, the Dow added 2.43%, and the tech-heavy Nasdaq gained 0.13%.
Heading into today, shares of the world's largest retailer had gained 8.86% over the past month, outpacing the Retail-Wholesale sector's gain of 6.16% and the S&P 500's gain of 4.44% in that time.
Investors will be hoping for strength from Walmart as it approaches its next earnings release, which is expected to be August 16, 2022. On that day, Walmart is projected to report earnings of $1.82 per share, which would represent year-over-year growth of 2.25%. Meanwhile, our latest consensus estimate is calling for revenue of $148.41 billion, up 5.22% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $6.40 per share and revenue of $594.6 billion, which would represent changes of -0.93% and +3.81%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Walmart. These revisions help to show the ever-changing nature of near-term business trends. 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. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Walmart is currently sporting a Zacks Rank of #4 (Sell).
In terms of valuation, Walmart is currently trading at a Forward P/E ratio of 20.11. Its industry sports an average Forward P/E of 11.1, so we one might conclude that Walmart is trading at a premium comparatively.
Meanwhile, WMT's PEG ratio is currently 3.66. 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 industry currently had an average PEG ratio of 1.74 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 238, which puts it in the bottom 6% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.