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Walmart (WMT) Advances While Market Declines: Some Information for Investors

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Walmart (WMT - Free Report) closed the most recent trading day at $99.54, moving +1.41% from the previous trading session. The stock exceeded the S&P 500, which registered a loss of 0.76% for the day. On the other hand, the Dow registered a loss of 0.28%, and the technology-centric Nasdaq decreased by 1.2%.

Heading into today, shares of the world's largest retailer had gained 8.13% over the past month, outpacing the Retail-Wholesale sector's gain of 7.49% and the S&P 500's gain of 2.71% in that time.

Investors will be eagerly watching for the performance of Walmart in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on February 20, 2025. The company is forecasted to report an EPS of $0.64, showcasing a 6.67% upward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $179.28 billion, indicating a 3.4% upward movement from the same quarter last year.

It is also important to note the recent changes to analyst estimates for Walmart. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.05% higher. At present, Walmart boasts a Zacks Rank of #2 (Buy).

Investors should also note Walmart's current valuation metrics, including its Forward P/E ratio of 39.66. This represents a premium compared to its industry's average Forward P/E of 13.77.

It's also important to note that WMT currently trades at a PEG ratio of 4.49. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Retail - Supermarkets industry currently had an average PEG ratio of 2.25 as of yesterday's close.

The Retail - Supermarkets industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 210, placing it within the bottom 17% of over 250 industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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