Walmart (WMT) Stock Sinks As Market Gains: Here's Why

Core Viewpoint - Walmart's stock performance has shown a slight decline recently, but it has outperformed the Retail-Wholesale sector and the S&P 500 over the past month, indicating resilience in its market position [1]. Financial Performance - Walmart is expected to report earnings of $0.64 per share on February 20, 2025, reflecting a year-over-year growth of 6.67$2.48 per share, representing an increase of 11.71%, with revenue expected to reach $679.45 billion, up 4.83% from the previous year [3]. Analyst Sentiment - Recent revisions in analyst estimates suggest optimism regarding Walmart's business and profitability, with a 0.05% rise in the Zacks Consensus EPS estimate over the past month [4][5]. - Walmart currently holds a Zacks Rank of 2 (Buy), indicating favorable analyst sentiment [5]. Valuation Metrics - Walmart's Forward P/E ratio stands at 39.35, significantly higher than the industry's Forward P/E of 13.55, suggesting a premium valuation [5]. - The company has a PEG ratio of 4.46, compared to the Retail-Supermarkets industry's average PEG ratio of 2.32, indicating higher expected earnings growth relative to its price [6]. Industry Context - The Retail-Supermarkets industry is currently ranked 213 in the Zacks Industry Rank, placing it within the bottom 16% of over 250 industries, which may impact overall investor sentiment [6][7].