Walmart Raises Full-Year Guidance, but U.S. Comparable Sales Growth Slowed to Just 2.6%. Here's What Investors Need to Know.
Walmart stock tumbled on weak comp sales. Is the stock in trouble?
Overview
Shares of Walmart (NASDAQ:WMT) were down 9% on Thursday, as investors balked at weaker-than-expected comparable sales growth in the quarter. Its EPS guidance for the third quarter and full year was worse than the Wall Street consensus, even as the company raised its guidance for the year.
The decline showed in part how high Walmart stock had run earlier as the company has successfully reinvented itself as an omnichannel retailer, attracted more upscale customers, and beaten back the challenge from Amazon.
Details
However, investors may have overestimated the company's momentum as the stock was trading at a price-to-earnings ratio above 40 earlier this year, a level usually reserved for growth stocks, rather than defensive plays like Walmart.
Source
Originally published at www.fool.com.