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Walmart (WMT) Stock Dips While Market Gains: Key Facts

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In the latest market close, Walmart (WMT - Free Report) reached $90.79, with a -0.81% movement compared to the previous day. The stock's change was less than the S&P 500's daily gain of 0.12%. Meanwhile, the Dow gained 0.52%, and the Nasdaq, a tech-heavy index, lost 0.23%.

Coming into today, shares of the world's largest retailer had lost 3.52% in the past month. In that same time, the Retail-Wholesale sector lost 4.43%, while the S&P 500 lost 3.45%.

The upcoming earnings release of Walmart will be of great interest to investors. The company's earnings report is expected on February 20, 2025. The company is predicted to post an EPS of $0.64, indicating a 6.67% growth compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $179.28 billion, up 3.4% from the year-ago period.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $2.47 per share and revenue of $679.45 billion, indicating changes of +11.26% and +4.83%, respectively, compared to the previous year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Walmart. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. As of now, Walmart holds a Zacks Rank of #2 (Buy).

From a valuation perspective, Walmart is currently exchanging hands at a Forward P/E ratio of 37. Its industry sports an average Forward P/E of 13.19, so one might conclude that Walmart is trading at a premium comparatively.

Investors should also note that WMT has a PEG ratio of 4.35 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Retail - Supermarkets stocks are, on average, holding a PEG ratio of 2.26 based on yesterday's closing prices.

The Retail - Supermarkets industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 215, placing it within the bottom 15% of over 250 industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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