In the latest market close, Walmart (WMT) hit $163.25, representing a +1.39% move from the prior day. The stock outperformed the S&P 500’s daily gain of 0.73%. Meanwhile, the Dow Jones Industrial Average rose 0.62%, and the tech-heavy Nasdaq rose 0.93%.
Coming into today, shares of the world’s largest retailer had fallen 1.26% in the past month. Over the same period, the Retail/Wholesale sector fell 3.41%, while the S&P 500 index fell 2.29%.
Market participants will be closely monitoring Walmart’s financial results that will be announced in the future. The company plans to announce its results on November 16, 2023. The company’s EPS is expected to be $1.50, indicating stability compared to the same period last year. Meanwhile, the Zacks Consensus Estimate for net sales is projecting net sales of $158.85 billion, up 3.95% from the year-ago period.
For the full fiscal year, our Zacks Consensus Estimates are projecting earnings of $6.43 per share and revenue of $641.65 billion, which would represent changes of +2.23% and +4.97%, respectively, from the prior year.
Additionally, investors may find it useful to monitor recent changes in analyst estimates for Walmart. These latest adjustments often reflect changes in short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.
Our research reveals that these estimate changes are directly correlated to near-term stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model that considers these estimate changes and provides an actionable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), has a remarkable, third-party-audited track record of outperformance, with #1 rated stocks having an average annual Generates a return of +25%. The Zacks Consensus EPS estimate has moved 0.01% higher within the past month. Walmart currently has a Zacks Rank of #2 (Buy).
Taking a closer look at valuation, Walmart’s current Forward P/E ratio is 25.02x. This valuation represents a premium compared to the industry’s average Forward P/E of 11.57.
We also note that WMT currently has a PEG ratio of 3.8. This popular metric is similar to the widely-known P/E ratio, except that the PEG ratio also takes into account the company’s expected earnings growth rate. As of yesterday’s close, the average PEG ratio for the Retail & Supermarket industry was 1.24.
The Retail-Supermarket industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 192, which puts it in the bottom 24% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% of industries outperform the bottom half by a factor of 2 to 1.
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