Markets

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

Walmart (WMT) closed at $131.47 in the latest trading session, marking a -0.2% move from the prior day. This change lagged the S&P 500's 0.84% gain on the day. Elsewhere, the Dow gained 0.03%, while the tech-heavy Nasdaq added 2.51%.

Heading into today, shares of the world's largest retailer had gained 11.65% over the past month, outpacing the Retail-Wholesale sector's gain of 7.53% and the S&P 500's gain of 3.73% 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 August 18, 2020. On that day, WMT is projected to report earnings of $1.22 per share, which would represent a year-over-year decline of 3.94%. Meanwhile, our latest consensus estimate is calling for revenue of $133.97 billion, up 2.76% from the prior-year quarter.

WMT's full-year Zacks Consensus Estimates are calling for earnings of $4.93 per share and revenue of $545.29 billion. These results would represent year-over-year changes of 0% and +4.07%, respectively.

Investors might also notice recent changes to analyst estimates for WMT. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 0.06% lower within the past month. WMT is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, WMT is holding a Forward P/E ratio of 26.72. This valuation marks a premium compared to its industry's average Forward P/E of 18.06.

Meanwhile, WMT's PEG ratio is currently 4.74. 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 was holding an average PEG ratio of 2.43 at yesterday's closing price.

The Retail - Supermarkets industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 94, which puts it in the top 38% of all 250+ industries.

The Zacks Industry Rank includes is listed in order 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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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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