Walmart Beats on Q3 Earnings, Hikes Views: ETFs to Gain

Before the opening bell yesterday, Walmart WMT reported robust third-quarter fiscal 2025 results, surpassing earnings and revenue estimates. The mega-retailer raised its guidance for the fiscal year for the third time this year, spreading bullishness about the company’s growth. This pushed WMT shares to a record high on elevated volume. Investors seeking to tap the opportune moment should consider ETFs having the highest allocation to the world's largest brick-and-mortar retailer. These include Consumer Staples Select Sector SPDR Fund XLP, Vanguard Consumer Staples ETF VDC, Fidelity MSCI Consumer Staples Index ETF FSTA, VanEck Vectors Retail ETF RTH and iShares Evolved U.S. Discretionary Spending ETF IEDI.Walmart’s Earnings in FocusEarnings per share were 58 cents, outpacing the Zacks Consensus Estimate of 53 cents and improving 13.7% from the year-ago quarter. Revenues rose 5.5% year over year to $169.6 billion and topped the consensus mark of $167.5 billion. The robust performance was driven by in-store shopping and higher demand for online items. U.S. comparable sales grew 5.3% year over year. Notably, e-commerce sales rose 22% globally, led by store-fulfilled pickup and delivery, and marketplace. The mega-retailer upped its fiscal 2025 guidance. It expects revenues to increase 4.8-5.1% compared with the previously mentioned 3.75-4.75% rise. The company anticipates earnings per share of $2.42-$2.47, up from the prior stated $2.35-$2.43. Below, we have shared details on the ETFs:Consumer Staples Select Sector SPDR Fund (XLP)Consumer Staples Select Sector SPDR Fund targets the broad consumer staples space and follows the Consumer Staples Select Sector Index. It holds about 38 securities in its basket, with Walmart taking the third spot at 9.1%. XLP has the largest allocation in consumer staples distribution and retail at 30%, whereas household products, beverages and food products account for a double-digit allocation each. Consumer Staples Select Sector SPDR Fund is the most popular consumer staples ETF with an AUM of $16.2 billion and an average daily volume of 9 million shares. XLP charges 9 bps in fees per year and has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook (read: Will Trump's Tariffs Fuel Inflation? ETFs in Focus).Vanguard Consumer Staples ETF (VDC)Vanguard Consumer Staples ETF also targets the broad consumer staples space by tracking the MSCI US Investable Market Consumer Staples 25/50 Index. It holds 104 stocks in its basket, with Walmart occupying the third position, with an 11.4% allocation. Vanguard Consumer Staples ETF manages a $7.1-billion asset base and charges a fee of 10 bps per year. VDC trades in a good average volume of around 84,000 shares per day and has a Zacks ETF Rank #3 with a Medium risk outlook.Fidelity MSCI Consumer Staples Index ETF (FSTA)Fidelity MSCI Consumer Staples Index ETF offers broad exposure to the consumer staples sector by tracking the MSCI USA IMI Consumer Staples Index and holds 106 stocks in its basket. Of these, Walmart takes the third spot with an 11.3% share. Fidelity MSCI Consumer Staples Index ETF has amassed $1.2 billion in its asset base while trading in a good volume of around 105,000 shares a day, on average. FSTA charges 8 bps in annual fees from investors and has a Zacks ETF Rank #3 with a Medium risk outlook (see: all Consumer Staples ETFs here).VanEck Vectors Retail ETF (RTH)VanEck Vectors Retail ETF provides exposure to the 26 largest retail firms by tracking the MVIS US Listed Retail 25 Index, which measures the performance of the companies involved in retail distribution, wholesalers, online, direct mail and TV retailers, multi-line retailers, specialty retailers, and food and other staples retailers. Walmart takes the third spot with an 8.4% share. VanEck Vectors Retail ETF has amassed $230.7 million in its asset base and charges 35 bps in annual fees. It trades in a lower volume of 3,000 shares a day on average. VanEck Vectors Retail ETF has a Zacks ETF Rank #3 with a Medium risk outlook.iShares U.S. Consumer Focused ETF (IEDI)iShares U.S. Consumer Focused ETF is an actively managed ETF providing exposure to U.S. companies with a focus on U.S. consumer spending and consumer goods. It holds 178 stocks in its basket, with Walmart occupying the fourth position at 7.6% share. iShares U.S. Consumer Focused ETF has accumulated $29.6 million in its asset base and charges 18 bps in fees per year. Volume is paltry for IEDI as it exchanges 6,000 shares a day, on average.Want key ETF info delivered straight to your inbox?Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.Get it free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Walmart Inc. (WMT): Free Stock Analysis Report Consumer Staples Select Sector SPDR ETF (XLP): ETF Research Reports VanEck Retail ETF (RTH): ETF Research Reports Vanguard Consumer Staples ETF (VDC): ETF Research Reports Fidelity MSCI Consumer Staples Index ETF (FSTA): ETF Research Reports iShares U.S. Consumer Focused ETF (IEDI): ETF Research ReportsTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks