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Before the opening bell yesterday, Walmart (WMT - Free Report) reported robust second-quarter fiscal 2025 results, surpassing earnings and revenue estimates. The megaretailer raised its guidance for the fiscal year for a second time this year, spreading bullishness about the company’s growth.
This pushed WMT shares to a record high on the highest trading volume since mid-May. Investors seeking to tap the opportune moment should consider ETFs having the highest allocation to the world's largest brick-and-mortar retailers. These include Consumer Staples Select Sector SPDR Fund (XLP - Free Report) , Vanguard Consumer Staples ETF (VDC - Free Report) , Fidelity MSCI Consumer Staples Index ETF (FSTA - Free Report) , VanEck Vectors Retail ETF (RTH - Free Report) and iShares Evolved U.S. Discretionary Spending ETF (IEDI - Free Report) .
Walmart’s Earnings in Focus
Earnings per share came in at 67 cents, outpacing the Zacks Consensus Estimate of 65 cents and improving 9.8% from the year-ago quarter. Revenues rose 4.8% year over year to $169.3 billion and topped the consensus mark of $168.5 billion. U.S. comparable sales grew 4.2%. Notably, e-commerce sales surged 21% globally, led by store-fulfilled pickup & delivery and marketplace.
The mega-retailer upped fiscal 2025 guidance. It now expects revenues to increase 3.75%-4.75%, up from the prior outlook of 3%-4%, and earnings per share in the range of $2.35-$2.43, up from the prior guidance of $2.23-$2.37. For third-quarter fiscal 2025, Walmart expects sales to grow 3.25%-4.25% and adjusted earnings per share in the range of 51-52 cents.
Below, we have detailed the ETFs:
Consumer Staples Select Sector SPDR Fund (XLP - Free Report)
Consumer Staples Select Sector SPDR Fund targets the broad consumer staples space and follows the Consumer Staples Select Sector Index. It holds about 38 securities in its basket with Walmart taking the third spot at 10.7%. XLP has the largest allocation in consumer staples distribution & retail at 32.6%, while household products, beverages, and food products account for a double-digit allocation each. Consumer Staples Select Sector SPDR Fund is the most popular consumer staples ETF with AUM of $16 billion and an average daily volume of 10.3 million shares. XLP charges 9 bps in fees per year and has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook (read: 5 ETF Strategies to Follow Amid the Current Market Turmoil).
Vanguard Consumer Staples ETF also targets the broad consumer staples space by tracking the MSCI US Investable Market Consumer Staples 25/50 Index. It holds 105 stocks in its basket, with Walmart occupying the third position, with an 8.8% allocation. Vanguard Consumer Staples ETF manages a $7 billion asset base and charges a fee of 10 bps per year. VDC trades in a good average volume of around 90,000 shares per day and has a Zacks ETF Rank #3 with a Medium risk outlook.
Fidelity MSCI Consumer Staples Index ETF (FSTA - Free Report)
Fidelity MSCI Consumer Staples Index ETF offers broad exposure to the consumer staples sector by tracking the MSCI USA IMI Consumer Staples Index and holds 107 stocks in its basket. Of these, Walmart takes the third spot with an 8.8% share. Fidelity MSCI Consumer Staples Index ETF has amassed $1.1 billion in its asset base while trading in a good volume of around 72,000 shares a day, on average. FSTA charges 8 bps in annual fees from investors and has a Zacks ETF Rank #3 with a Medium risk outlook (see: all Consumer Staples ETFs here).
VanEck Vectors Retail ETF provides exposure to the 26 largest retail firms by tracking the MVIS US Listed Retail 25 Index, which measures the performance of the companies involved in retail distribution, wholesalers, online, direct mail and TV retailers, multi-line retailers, specialty retailers and food and other staples retailers. Walmart takes the third spot with an 8.3% share. VanEck Vectors Retail ETF has amassed $204.2 million in its asset base and charges 35 bps in annual fees. It trades in a lower volume of 4,000 shares a day on average. VanEck Vectors Retail ETF has a Zacks ETF Rank #2 (Buy) with a Medium risk outlook.
iShares U.S. Consumer Focused ETF is an actively managed ETF providing exposure to U.S. companies with a focus on U.S. consumer spending and consumer goods. It holds 201 stocks in its basket, with Walmart occupying the fourth position at 7.1% share. iShares U.S. Consumer Focused ETF has accumulated $21.5 million in its asset base and charges 18 bps in fees per year. Volume is paltry for IEDI as it exchanges 3,000 shares a day, on average.
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ETFs to Gain on Walmart's Robust Q2 Earnings
Before the opening bell yesterday, Walmart (WMT - Free Report) reported robust second-quarter fiscal 2025 results, surpassing earnings and revenue estimates. The megaretailer raised its guidance for the fiscal year for a second time this year, spreading bullishness about the company’s growth.
This pushed WMT shares to a record high on the highest trading volume since mid-May. Investors seeking to tap the opportune moment should consider ETFs having the highest allocation to the world's largest brick-and-mortar retailers. These include Consumer Staples Select Sector SPDR Fund (XLP - Free Report) , Vanguard Consumer Staples ETF (VDC - Free Report) , Fidelity MSCI Consumer Staples Index ETF (FSTA - Free Report) , VanEck Vectors Retail ETF (RTH - Free Report) and iShares Evolved U.S. Discretionary Spending ETF (IEDI - Free Report) .
Walmart’s Earnings in Focus
Earnings per share came in at 67 cents, outpacing the Zacks Consensus Estimate of 65 cents and improving 9.8% from the year-ago quarter. Revenues rose 4.8% year over year to $169.3 billion and topped the consensus mark of $168.5 billion. U.S. comparable sales grew 4.2%. Notably, e-commerce sales surged 21% globally, led by store-fulfilled pickup & delivery and marketplace.
The mega-retailer upped fiscal 2025 guidance. It now expects revenues to increase 3.75%-4.75%, up from the prior outlook of 3%-4%, and earnings per share in the range of $2.35-$2.43, up from the prior guidance of $2.23-$2.37. For third-quarter fiscal 2025, Walmart expects sales to grow 3.25%-4.25% and adjusted earnings per share in the range of 51-52 cents.
Below, we have detailed the ETFs:
Consumer Staples Select Sector SPDR Fund (XLP - Free Report)
Consumer Staples Select Sector SPDR Fund targets the broad consumer staples space and follows the Consumer Staples Select Sector Index. It holds about 38 securities in its basket with Walmart taking the third spot at 10.7%. XLP has the largest allocation in consumer staples distribution & retail at 32.6%, while household products, beverages, and food products account for a double-digit allocation each. Consumer Staples Select Sector SPDR Fund is the most popular consumer staples ETF with AUM of $16 billion and an average daily volume of 10.3 million shares. XLP charges 9 bps in fees per year and has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook (read: 5 ETF Strategies to Follow Amid the Current Market Turmoil).
Vanguard Consumer Staples ETF (VDC - Free Report)
Vanguard Consumer Staples ETF also targets the broad consumer staples space by tracking the MSCI US Investable Market Consumer Staples 25/50 Index. It holds 105 stocks in its basket, with Walmart occupying the third position, with an 8.8% allocation. Vanguard Consumer Staples ETF manages a $7 billion asset base and charges a fee of 10 bps per year. VDC trades in a good average volume of around 90,000 shares per day and has a Zacks ETF Rank #3 with a Medium risk outlook.
Fidelity MSCI Consumer Staples Index ETF (FSTA - Free Report)
Fidelity MSCI Consumer Staples Index ETF offers broad exposure to the consumer staples sector by tracking the MSCI USA IMI Consumer Staples Index and holds 107 stocks in its basket. Of these, Walmart takes the third spot with an 8.8% share. Fidelity MSCI Consumer Staples Index ETF has amassed $1.1 billion in its asset base while trading in a good volume of around 72,000 shares a day, on average. FSTA charges 8 bps in annual fees from investors and has a Zacks ETF Rank #3 with a Medium risk outlook (see: all Consumer Staples ETFs here).
VanEck Vectors Retail ETF (RTH - Free Report)
VanEck Vectors Retail ETF provides exposure to the 26 largest retail firms by tracking the MVIS US Listed Retail 25 Index, which measures the performance of the companies involved in retail distribution, wholesalers, online, direct mail and TV retailers, multi-line retailers, specialty retailers and food and other staples retailers. Walmart takes the third spot with an 8.3% share. VanEck Vectors Retail ETF has amassed $204.2 million in its asset base and charges 35 bps in annual fees. It trades in a lower volume of 4,000 shares a day on average. VanEck Vectors Retail ETF has a Zacks ETF Rank #2 (Buy) with a Medium risk outlook.
iShares U.S. Consumer Focused ETF (IEDI - Free Report)
iShares U.S. Consumer Focused ETF is an actively managed ETF providing exposure to U.S. companies with a focus on U.S. consumer spending and consumer goods. It holds 201 stocks in its basket, with Walmart occupying the fourth position at 7.1% share. iShares U.S. Consumer Focused ETF has accumulated $21.5 million in its asset base and charges 18 bps in fees per year. Volume is paltry for IEDI as it exchanges 3,000 shares a day, on average.