Walmart (WMT) Stock Falls Amid Market Uptick: What Investors Need to Know

Walmart (WMT) ended the recent trading session at $160.50, demonstrating a -1.41% swing from the preceding day's closing price. This change lagged the S&P 500's 0.08% gain on the day. On the other hand, the Dow registered a loss of 0.26%, and the technology-centric Nasdaq increased by 0.36%.

The world's largest retailer's stock has climbed by 4.09% in the past month, exceeding the Retail-Wholesale sector's gain of 0.71% and the S&P 500's gain of 2.4%.

The investment community will be closely monitoring the performance of Walmart in its forthcoming earnings report. The company is scheduled to release its earnings on February 20, 2024. On that day, Walmart is projected to report earnings of $1.63 per share, which would represent a year-over-year decline of 4.68%. In the meantime, our current consensus estimate forecasts the revenue to be $170.21 billion, indicating a 3.75% growth compared to the corresponding quarter of the prior year.

For the full year, the Zacks Consensus Estimates project earnings of $6.44 per share and a revenue of $644.94 billion, demonstrating changes of +2.38% and +5.51%, respectively, from the preceding year.

Investors might also notice recent changes to analyst estimates 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 demonstrates that these adjustments in estimates directly associate with imminent 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. The Zacks Consensus EPS estimate has moved 0.14% lower within the past month. Currently, Walmart is carrying a Zacks Rank of #3 (Hold).

Investors should also note Walmart's current valuation metrics, including its Forward P/E ratio of 25.26. This indicates a premium in contrast to its industry's Forward P/E of 13.49.

We can also see that WMT currently has a PEG ratio of 3.45. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Retail - Supermarkets industry had an average PEG ratio of 1.01.

The Retail - Supermarkets industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 31, this industry ranks in the top 13% of all industries, numbering over 250.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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 use to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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