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Walmart (WMT) Flat As Market Sinks: What You Should Know

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Walmart (WMT - Free Report) closed the most recent trading day at $80.43, making no change from the previous trading session. The stock's performance was ahead of the S&P 500's daily loss of 0.17%. Meanwhile, the Dow lost 0.44%, and the Nasdaq, a tech-heavy index, lost 0.04%.

Shares of the world's largest retailer have appreciated by 4.13% over the course of the past month, underperforming the Retail-Wholesale sector's gain of 5.43% and outperforming the S&P 500's gain of 1.25%.

The investment community will be paying close attention to the earnings performance of Walmart in its upcoming release. The company is expected to report EPS of $0.53, up 3.92% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $167.55 billion, up 4.19% from the year-ago period.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $2.44 per share and a revenue of $678.75 billion, indicating changes of +9.91% and +4.73%, respectively, from the former year.

Investors might also notice recent changes 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Walmart is currently a Zacks Rank #3 (Hold).

Investors should also note Walmart's current valuation metrics, including its Forward P/E ratio of 33. This represents a premium compared to its industry's average Forward P/E of 14.4.

It's also important to note that WMT currently trades at a PEG ratio of 4.03. 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. The Retail - Supermarkets industry currently had an average PEG ratio of 1.99 as of yesterday's close.

The Retail - Supermarkets industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 49, placing it within the top 20% of over 250 industries.

The Zacks Industry Rank is ordered 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.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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