In the latest trading session, Walmart (WMT) closed at $159.09, experiencing a modest dip of -0.63% from the previous day. While this marks a minor setback for the retail giant, it’s essential to note that this change was less severe than the S&P 500’s daily loss of 1.37%. Furthermore, the Dow also saw a decline of 1.29%, and the tech-heavy Nasdaq lost 1.87%, emphasizing Walmart’s relative resilience.
Walmart (WMT) Sees Minor Decline, Defying Broader Market Trends
Zooming out to the past month, Walmart shares had experienced a slight decrease of 0.91%. Remarkably, this decline was narrower than the Retail-Wholesale sector’s loss of 5.77% and the S&P 500’s dip of 4.93% during the same period.
Looking ahead, investors have their eyes set on Walmart’s upcoming earnings release. Analysts anticipate earnings of $1.50 per share, indicating no substantial growth compared to the previous year. Simultaneously, the Zacks Consensus Estimate for revenue suggests projected net sales of $158.85 billion, reflecting a 3.95% increase from the year-ago period.
Considering the full fiscal year, Zacks Consensus Estimates indicate expectations of earnings reaching $6.43 per share and revenue of $641.65 billion. These figures represent changes of +2.23% and +4.97%, respectively, compared to the previous year.
It’s noteworthy that recent positive revisions in analyst estimates reflect optimism about Walmart’s business outlook, often linked to short-term stock movements. The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), boasts a track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Currently, Walmart holds a Zacks Rank of #2 (Buy).
Walmart’s valuation stands at a Forward P/E ratio of 24.88, surpassing the industry average of 11.73. Additionally, the PEG ratio, which considers expected earnings growth, is 3.78 for WMT, compared to an industry average of 2.07 among Retail – supermarket stocks.
The Retail – Supermarkets industry, part of the Retail-Wholesale sector, ranks 41st in the Zacks Industry Rank, placing it in the top 17% of all industries. This ranking underscores the industry’s strength, as industries in the top 50% often outperform the lower half by a factor of 2 to 1.
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