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Walmart (WMT) Gains As Market Dips: What You Should Know

Walmart (WMT) closed at $140.58 in the latest trading session, marking a +0.38% move from the prior day. This move outpaced the S&P 500's daily loss of 0.35%.

Coming into today, shares of the world's largest retailer had lost 0.36% in the past month. In that same time, the Retail-Wholesale sector gained 1.66%, while the S&P 500 gained 3.36%.

Wall Street will be looking for positivity from WMT as it approaches its next earnings report date. This is expected to be August 17, 2021. In that report, analysts expect WMT to post earnings of $1.53 per share. This would mark a year-over-year decline of 1.92%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $135.81 billion, down 1.41% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $5.95 per share and revenue of $551.81 billion, which would represent changes of +8.58% and -1.31%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for WMT. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. WMT is currently sporting a Zacks Rank of #2 (Buy).

Digging into valuation, WMT currently has a Forward P/E ratio of 23.52. For comparison, its industry has an average Forward P/E of 13.62, which means WMT is trading at a premium to the group.

We can also see that WMT currently has a PEG ratio of 4.28. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. WMT's industry had an average PEG ratio of 1.33 as of yesterday's close.

The Retail - Supermarkets industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 126, putting it in the top 50% 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 Inc. (WMT): Free Stock Analysis Report
 
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