Walmart (WMT) Laps the Stock Market: Here's Why

Walmart (WMT) ended the recent trading session at $85.90, demonstrating a +0.1% swing from the preceding day's closing price. This move outpaced the S&P 500's daily gain of 0.08%. Elsewhere, the Dow gained 0.08%, while the tech-heavy Nasdaq added 0.52%.Shares of the world's largest retailer have depreciated by 11.73% over the course of the past month, underperforming the Retail-Wholesale sector's loss of 9.1% and the S&P 500's loss of 7.33%.Analysts and investors alike will be keeping a close eye on the performance of Walmart in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $0.59, marking a 1.67% fall compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $165.92 billion, indicating a 2.73% increase compared to the same quarter of the previous year.In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $2.63 per share and a revenue of $703.77 billion, indicating changes of +4.78% and +3.35%, respectively, from the former year.It is also important to note the recent changes to analyst estimates for Walmart. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, 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. Over the past month, there's been a 4.09% fall in the Zacks Consensus EPS estimate. Walmart is currently a Zacks Rank #3 (Hold).Investors should also note Walmart's current valuation metrics, including its Forward P/E ratio of 32.66. This indicates a premium in contrast to its industry's Forward P/E of 13.06.Also, we should mention that WMT has a PEG ratio of 4.56. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Retail - Supermarkets industry stood at 2.1 at the close of the market yesterday.The Retail - Supermarkets industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 82, positioning it in the top 33% of all 250+ industries.The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. 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.Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 256 positions with double- and triple-digit gains in 2024 alone.See Stocks Now >>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 ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks