Walmart (WMT) Exceeds Market Returns: Some Facts to Consider
Walmart (WMT) closed at $107.20 in the latest trading session, marking a +2.03% move from the prior day. This change outpaced the S&P 500's 0.58% gain on the day. Meanwhile, the Dow gained 0.49%, and the Nasdaq, a tech-heavy index, added 0.45%.
The world's largest retailer's stock has dropped by 1.93% in the past month, exceeding the Retail-Wholesale sector's loss of 4.5% and lagging the S&P 500's gain of 0.84%.
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 November 19, 2026. The company is expected to report EPS of $0.63, up 1.61% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $186.47 billion, up 3.88% from the year-ago period.
WMT's full-year Zacks Consensus Estimates are calling for earnings of $2.87 per share and revenue of $751.39 billion. These results would represent year-over-year changes of +8.71% and +5.36%, respectively.
It's also important for investors to be aware of any recent modifications to analyst estimates for Walmart. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.06% higher. Walmart presently features a Zacks Rank of #3 (Hold).
Looking at its valuation, Walmart is holding a Forward P/E ratio of 36.56. This valuation marks a premium compared to its industry average Forward P/E of 13.13.
We can also see that WMT currently has a PEG ratio of 4.01. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Retail - Supermarkets industry was having an average PEG ratio of 1.77.
The Retail - Supermarkets industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 183, placing it within the bottom 26% of over 250 industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within 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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This article originally published on Zacks Investment Research (zacks.com).
