Walmart (WMT) Stock Performance Amid Market Changes

Walmart (WMT) recently closed at $90.79, reflecting a decrease of -0.81% from the previous trading day. This performance stands in contrast to the overall market, where the S&P 500 saw a slight increase of 0.12%. Meanwhile, the Dow Jones Industrial Average rose by 0.52%, while the Nasdaq composite index, which is heavily focused on technology, experienced a decline of 0.23%.

Walmart's Recent Stock Trends

Leading up to this trading session, Walmart shares have witnessed a decline of 3.52% over the past month. During the same timeframe, the entire Retail-Wholesale sector has also faced challenges, with an overall drop of 4.43%. Additionally, the S&P 500 index reported a loss of 3.45% in that period, indicating a challenging environment for many stocks.

Upcoming Earnings Announcement

Investors are keenly awaiting Walmart's upcoming earnings report, scheduled for February 20, 2025. Analysts are projecting that the retail giant will report an earnings per share (EPS) of $0.64, which represents a growth of 6.67% compared to the same quarter last year. The consensus estimate for quarterly revenue stands at approximately $179.28 billion, which indicates a rise of 3.4% from the previous year.

Annual Earnings Forecast

For the entire fiscal year, Zacks Consensus Estimates anticipate Walmart will achieve an EPS of $2.47, alongside a revenue forecast of about $679.45 billion. If these estimates hold, it would reflect a year-over-year change of +11.26% for earnings and +4.83% for revenue.

Analysts' Projections and Stock Outlook

It is crucial for investors to keep an eye on any adjustments in analyst predictions related to Walmart, as such changes often signify shifts in short-term business trends. Positive revisions in estimates tend to enhance the perception of the company's business outlook.

Zacks Rank and Valuation Insights

Walmart's stock currently holds a Zacks Rank of #2 (Buy). The Zacks Rank system operates on a scale from #1 (Strong Buy) to #5 (Strong Sell) and has demonstrated a history of outperforming the market, with #1 ranked stocks averaging a +25% annual return since 1988. On the valuation front, Walmart's Forward P/E ratio is 37, notably higher than the industry average of 13.19, suggesting that Walmart shares command a premium in the market.

PEG Ratio and Industry Performance

Furthermore, Walmart currently has a PEG ratio of 4.35, which is in comparison to the average PEG ratio of 2.26 for stocks in the Retail-Supermarkets industry. The Retail-Supermarkets sector itself ranks 215 out of over 250 industries, placing it within the lower 15% of all industry groups.

Conclusion

Overall, as Walmart prepares for its earnings release and navigates the current market landscape, keeping track of stock-impacting metrics will be essential for investors looking to make informed decisions.

Walmart, Stock, Earnings