What Makes Walmart (WMT) a New Buy Stock

Core Viewpoint - Walmart has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system tracks earnings estimates, which are crucial for predicting stock price movements, especially for individual investors who may struggle with subjective analyst ratings [2][4]. - The upgrade reflects an improvement in Walmart's earnings outlook, likely leading to increased buying pressure and a rise in stock price [3][5]. Earnings Estimate Revisions - For the fiscal year ending January 2025, Walmart is expected to earn $2.47 per share, representing an 11.3% increase from the previous year [8]. - Over the past three months, the Zacks Consensus Estimate for Walmart has risen by 1.5%, indicating a positive trend in earnings estimates [8]. Zacks Rank System - The Zacks Rank system categorizes stocks based on earnings estimate revisions, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have averaged a +25% annual return since 1988 [7]. - Walmart's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10].