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Walmart (WMT) Gains As Market Dips: What You Should Know
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Walmart (WMT - Free Report) closed the most recent trading day at $143.94, moving +1% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.97%. At the same time, the Dow lost 0.96%, and the tech-heavy Nasdaq gained 0.23%.
Prior to today's trading, shares of the world's largest retailer had gained 2.08% over the past month. This has outpaced the Retail-Wholesale sector's loss of 5.18% and the S&P 500's loss of 0.78% in that time.
Walmart will be looking to display strength as it nears its next earnings release, which is expected to be February 17, 2022. In that report, analysts expect Walmart to post earnings of $1.49 per share. This would mark year-over-year growth of 7.19%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $150.91 billion, down 0.77% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $6.41 per share and revenue of $571.23 billion, which would represent changes of +16.97% and +2.16%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Walmart. 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.01% lower within the past month. Walmart currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, Walmart is holding a Forward P/E ratio of 22.23. This valuation marks a premium compared to its industry's average Forward P/E of 12.86.
Also, we should mention that WMT has a PEG ratio of 4.04. 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. The Retail - Supermarkets was holding an average PEG ratio of 1.26 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 17, which puts it in the top 7% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Walmart (WMT) Gains As Market Dips: What You Should Know
Walmart (WMT - Free Report) closed the most recent trading day at $143.94, moving +1% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.97%. At the same time, the Dow lost 0.96%, and the tech-heavy Nasdaq gained 0.23%.
Prior to today's trading, shares of the world's largest retailer had gained 2.08% over the past month. This has outpaced the Retail-Wholesale sector's loss of 5.18% and the S&P 500's loss of 0.78% in that time.
Walmart will be looking to display strength as it nears its next earnings release, which is expected to be February 17, 2022. In that report, analysts expect Walmart to post earnings of $1.49 per share. This would mark year-over-year growth of 7.19%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $150.91 billion, down 0.77% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $6.41 per share and revenue of $571.23 billion, which would represent changes of +16.97% and +2.16%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Walmart. 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.01% lower within the past month. Walmart currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, Walmart is holding a Forward P/E ratio of 22.23. This valuation marks a premium compared to its industry's average Forward P/E of 12.86.
Also, we should mention that WMT has a PEG ratio of 4.04. 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. The Retail - Supermarkets was holding an average PEG ratio of 1.26 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 17, which puts it in the top 7% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.