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Walmart (WMT) Gains But Lags Market: What You Should Know
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Walmart (WMT - Free Report) closed at $131.53 in the latest trading session, marking a +1.8% move from the prior day. The stock lagged the S&P 500's daily gain of 2.29%. Meanwhile, the Dow gained 1.99%, and the Nasdaq, a tech-heavy index, added 2.81%.
Prior to today's trading, shares of the world's largest retailer had gained 12.33% over the past month. This has lagged the Retail-Wholesale sector's gain of 20.95% and the S&P 500's gain of 19.13% in that time.
Wall Street will be looking for positivity from WMT as it approaches its next earnings report date. This is expected to be May 19, 2020. On that day, WMT is projected to report earnings of $1.16 per share, which would represent year-over-year growth of 2.65%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $128.62 billion, up 3.79% from the year-ago period.
WMT's full-year Zacks Consensus Estimates are calling for earnings of $5.11 per share and revenue of $542.49 billion. These results would represent year-over-year changes of +3.65% and +3.54%, respectively.
It is also important to note the recent changes to analyst estimates for WMT. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
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. The Zacks Consensus EPS estimate has moved 0.08% higher within the past month. WMT is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note WMT's current valuation metrics, including its Forward P/E ratio of 25.29. This represents a premium compared to its industry's average Forward P/E of 11.81.
It is also worth noting that WMT currently has a PEG ratio of 5.12. 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. Retail - Supermarkets stocks are, on average, holding a PEG ratio of 2.32 based on yesterday's closing prices.
The Retail - Supermarkets industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 16, which puts it in the top 7% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Walmart (WMT) Gains But Lags Market: What You Should Know
Walmart (WMT - Free Report) closed at $131.53 in the latest trading session, marking a +1.8% move from the prior day. The stock lagged the S&P 500's daily gain of 2.29%. Meanwhile, the Dow gained 1.99%, and the Nasdaq, a tech-heavy index, added 2.81%.
Prior to today's trading, shares of the world's largest retailer had gained 12.33% over the past month. This has lagged the Retail-Wholesale sector's gain of 20.95% and the S&P 500's gain of 19.13% in that time.
Wall Street will be looking for positivity from WMT as it approaches its next earnings report date. This is expected to be May 19, 2020. On that day, WMT is projected to report earnings of $1.16 per share, which would represent year-over-year growth of 2.65%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $128.62 billion, up 3.79% from the year-ago period.
WMT's full-year Zacks Consensus Estimates are calling for earnings of $5.11 per share and revenue of $542.49 billion. These results would represent year-over-year changes of +3.65% and +3.54%, respectively.
It is also important to note the recent changes to analyst estimates for WMT. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
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. The Zacks Consensus EPS estimate has moved 0.08% higher within the past month. WMT is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note WMT's current valuation metrics, including its Forward P/E ratio of 25.29. This represents a premium compared to its industry's average Forward P/E of 11.81.
It is also worth noting that WMT currently has a PEG ratio of 5.12. 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. Retail - Supermarkets stocks are, on average, holding a PEG ratio of 2.32 based on yesterday's closing prices.
The Retail - Supermarkets industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 16, which puts it in the top 7% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.