Walmart (WMT) shares rallied 3% in the last trading session to close at $117.97. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 1.9% loss over the past four weeks.
Walmart’s momentum is supported by accelerating e-commerce adoption, faster delivery capabilities and consistent market-share gains across core categories. Strength in advertising, membership programs and omnichannel execution reinforce confidence in a diversified profit model.
This world's largest retailer is expected to post quarterly earnings of $0.72 per share in its upcoming report, which represents a year-over-year change of +9.1%. Revenues are expected to be $189.84 billion, up 5.1% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Walmart, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on WMT going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Walmart belongs to the Zacks Retail - Supermarkets industry. Another stock from the same industry, Kroger (KR), closed the last trading session 2.7% higher at $61.11. Over the past month, KR has returned -5.8%.
Kroger's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1.2. Compared to the company's year-ago EPS, this represents a change of +5.3%. Kroger currently boasts a Zacks Rank of #3 (Hold).
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
