Walmart (WMT) Experiences Greater Decline Than Overall Market: Key Insights for Investors

In the most recent trading session, Walmart (WMT) closed at $90, reflecting a decline of -0.39% from the previous trading day. This performance was weaker compared to the broader market, as the S&P 500 recorded a daily loss of 0.22%. Additionally, the Dow Jones Industrial Average fell by 0.36%, while the tech-heavy Nasdaq experienced a decrease of 0.16%.

Over the past month, Walmart's stock has registered a notable decrease of 4.34%. This decline is significantly steeper than the Retail-Wholesale sector's average loss of 1.69% and the S&P 500's drop of 2.36% during the same period.

As investors keep a close eye on upcoming earnings announcements, Walmart is expected to report its earnings on February 20, 2025. Analysts predict an earnings per share (EPS) of $0.64, which would represent a growth of 6.67% compared to the same quarter last year. In terms of revenue, the latest consensus estimates place it at $179.28 billion, reflecting a 3.4% year-over-year increase.

For the entire fiscal year, the Zacks Consensus Estimates indicate analysts foresee Walmart achieving earnings of $2.47 per share and total revenue of $679.45 billion. These figures suggest increases of 11.26% and 4.83%, respectively, compared to the previous year.

Investors may take note of the recent adjustments in analyst estimates for Walmart. Such revisions often mirror the latest trends in business performance, which can change rapidly. Positive adjustments are indicative of analyst optimism regarding the company's financial health and profit potential.

Research indicates that changes in these estimates are closely linked to short-term stock movements. To harness this information, the Zacks Rank has been developed, providing clear and actionable rating models for investors. The Zacks Rank ranges from #1 (Strong Buy) to #5 (Strong Sell), with its #1 rated stocks historically delivering average annual returns of +25% since 1988. Currently, Walmart holds a Zacks Rank of #3 (Hold).

Evaluating Walmart's valuation, the stock is presently trading at a Forward P/E ratio of 36.52, which is a considerable premium compared to the industry average Forward P/E of 13.73.

Moreover, Walmart holds a PEG ratio of 4.29. This metric is similar to the commonly used P/E ratio but additionally considers the expected earnings growth rate. The average PEG ratio in the Retail - Supermarkets sector stood at 2.11 at the close of the previous trading session.

The Retail - Supermarkets industry is categorized under the broader Retail-Wholesale sector. As of now, this industry has a Zacks Industry Rank of 153, placing it within the bottom 40% of over 250 evaluated industries.

The Zacks Industry Rank assesses the strength of different industry groups by analyzing the average Zacks Rank of individual stocks within those groups. Historically, industries in the top 50% have outperformed those in the lower half by a factor of 2 to 1.

Investors are encouraged to utilize available resources to stay informed on stock-related metrics and trends as trading sessions progress.

Walmart, Market, Analysis