Close Menu
Fund Focus News
    Facebook X (Twitter) Instagram
    Trending
    • What is Expense Ratio in Mutual Funds? – Money Insights News
    • Billionaires Buy 2 Magnificent Index Funds That a Wall Street Analyst Says Could Soar 132%
    • not the FTSE 100 or S&P 500)
    • Five tell-tale signs that investing money is not for you
    • Big Brother star begs fans to help raise funds for hospital treatment
    • Is asking for honeymoon funds instead of a gift registry tacky? Millennials and boomers are having a heated debate
    • Four Types of Funds to Switch to Before Retirement
    • Ethereum ETFs Close Out August With $164 Million In Outflows
    Facebook X (Twitter) Instagram
    Fund Focus News
    • Home
    • Bonds
    • ETFs
    • Funds
    • Investments
    • Mutual Funds
    • Property Investments
    • SIP
    Fund Focus News
    Home»ETFs»ETFs to Watch as Walmart Looks Poised to Beat on Q4 Earnings
    ETFs

    ETFs to Watch as Walmart Looks Poised to Beat on Q4 Earnings

    February 19, 2025


    The world’s largest brick-and-mortar retailer — Walmart WMT — is scheduled to report its fourth-quarter fiscal 2025 results on Feb. 20, before market open. Let’s take a closer look at its fundamentals ahead of the earnings release.

    Walmart has gained 23.4% over the past three months, outperforming the Zacks industry average growth of 15.1%. The outperformance is likely to continue given that Walmart has higher chances of beating earnings estimates (read: Retail ETFs in Focus Ahead of Big-Box Q4 Earnings). 

    This has put ETFs having a substantial allocation to the retailer like Consumer Staples Select Sector SPDR Fund XLP, Vanguard Consumer Staples ETF VDC, Fidelity MSCI Consumer Staples Index ETF FSTA, VanEck Vectors Retail ETF RTH and iShares Evolved U.S. Discretionary Spending ETF IEDI in focus ahead of its quarterly earnings.

    Walmart has an Earnings ESP of +2.15% and a Zacks Rank #2 (Buy). According to our methodology, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 or 3 (Hold) increases the chances of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter. 

    The retailer saw no earnings estimate revision over the past 30 days for the to-be-reported quarter. The Zacks Consensus Estimate for the fiscal fourth quarter indicates substantial year-over-year growth of 6.7% in earnings and 3.3% in revenues. The company’s earnings track record is robust. It delivered a four-quarter average earnings surprise of 9.25%.

    Walmart relies more on groceries and essential products, which tend to maintain stable demand throughout economic cycles. Its value-driven approach and well-executed digital strategy have helped the retailer capture more grocery market share, particularly by attracting higher-income households.

    Despite this shift, Walmart still has significant exposure to lower-income consumers, many of whom remain under financial strain due to persistent inflation. However, the company has successfully offset this weakness by drawing in more affluent shoppers through its efficient digital offerings.

    Beyond attracting higher-income consumers, Walmart’s expanding e-commerce business is also unlocking new revenue streams. Its digital platform supports higher-margin opportunities such as advertising and third-party fulfillment, further strengthening its long-term growth prospects.

    Analysts are bullish on Walmart, with an average brokerage recommendation (ABR) of 1.25 made by 38 brokerage firms. Out of them, 31 are Strong Buy and four are Buy. Strong Buy and Buy, respectively, account for 81.58% and 10.53% of all recommendations. The average price target for Walmart comes to $103.11, ranging from a low of $80.00 to a high of $120.00.

    Several analysts have lifted their price target on Walmart ahead of earnings, citing expectations of market share gains and outperformance. Morgan Stanley and Deutsche Bank analysts each recently lifted their price target to $115, while analysts from JPMorgan and Bank of America lifted their targets to $112 and $120, respectively.

    On its last earnings call, the mega-retailer lifted its fiscal 2025 guidance. It expects revenues to increase 4.8-5.1% compared with the previously mentioned 3.75-4.75% rise. The company anticipates earnings per share of $2.42-$2.47, up from the prior stated $2.35-$2.43.

    Consumer Staples Select Sector SPDR Fund (XLP)

    Consumer Staples Select Sector SPDR Fund targets the broad consumer staples space and follows the Consumer Staples Select Sector Index. It holds about 38 securities in its basket, with Walmart taking the second spot at 10.8%. XLP has the largest allocation in consumer staples distribution & retail at 32.6%, while household products, beverages, and food products account for a double-digit allocation each. Consumer Staples Select Sector SPDR Fund is the most popular consumer staples ETF with AUM of $17 billion and an average daily volume of 9 million shares. XLP charges 8 bps in fees per year and has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook (read: 4 Safe ETFs to Play as Tariff Tensions Heat Up).

    Vanguard Consumer Staples ETF (VDC)

    Vanguard Consumer Staples ETF also targets the broad consumer staples space by tracking the MSCI US Investable Market Consumer Staples 25/50 Index. It holds 103 stocks in its basket, with Walmart occupying the second position, with a 13.6% allocation. Vanguard Consumer Staples ETF manages a $7.4 billion asset base and charges a fee of 9 bps per year. VDC trades in a good average volume of around 108,000 shares per day and has a Zacks ETF Rank #3 with a Medium risk outlook.

    Fidelity MSCI Consumer Staples Index ETF (FSTA)

    Fidelity MSCI Consumer Staples Index ETF offers broad exposure to the consumer staples sector by tracking the MSCI USA IMI Consumer Staples Index and holds 105 stocks in its basket. Of these, Walmart takes the top spot with a 13.5% share. Fidelity MSCI Consumer Staples Index ETF has amassed $1.3 billion in its asset base while trading in a good volume of around 119,000 shares a day, on average. FSTA charges 8 bps in annual fees from investors and has a Zacks ETF Rank #3 with a Medium risk outlook (see: all Consumer Staples ETFs here).

    VanEck Vectors Retail ETF (RTH)

    VanEck Vectors Retail ETF provides exposure to the 26 largest retail firms by tracking the MVIS US Listed Retail 25 Index, which measures the performance of the companies involved in retail distribution, wholesalers, online, direct mail and TV retailers, multi-line retailers, specialty retailers and food and other staples retailers. Walmart takes the second spot with a 9.4% share. VanEck Vectors Retail ETF has amassed $242.3 million in its asset base and charges 35 bps in annual fees. It trades in a lower volume of 5,000 shares a day on average. VanEck Vectors Retail ETF has a Zacks ETF Rank #3 with a Medium risk outlook.

    iShares U.S. Consumer Focused ETF (IEDI)

    iShares U.S. Consumer Focused ETF is an actively managed ETF that provides exposure to U.S. companies with a focus on consumer spending and consumer goods. It holds 178 stocks in its basket, with Walmart occupying the fourth position at 8.7% share. iShares U.S. Consumer Focused ETF has accumulated $34.4 million in its asset base and charges 18 bps in fees per year. Volume is paltry for IEDI as it exchanges 6,000 shares a day, on average.

    Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

    Walmart Inc. (WMT) : Free Stock Analysis Report

    Consumer Staples Select Sector SPDR ETF (XLP): ETF Research Reports

    VanEck Retail ETF (RTH): ETF Research Reports

    Vanguard Consumer Staples ETF (VDC): ETF Research Reports

    Fidelity MSCI Consumer Staples Index ETF (FSTA): ETF Research Reports

    iShares U.S. Consumer Focused ETF (IEDI): ETF Research Reports

    To read this article on Zacks.com click here.

    Zacks Investment Research



    Source link

    Share. Facebook Twitter Pinterest LinkedIn Tumblr Telegram Email

    Related Posts

    not the FTSE 100 or S&P 500)

    August 30, 2025

    Ethereum ETFs Close Out August With $164 Million In Outflows

    August 30, 2025

    Bitcoin ETFs See Heavy Outflows as Amdax Launches $23M BTC Treasury Bid

    August 30, 2025
    Leave A Reply Cancel Reply

    Top Posts

    not the FTSE 100 or S&P 500)

    August 30, 2025

    The Shifting Landscape of Art Investment and the Rise of Accessibility: The London Art Exchange

    September 11, 2023

    The Unyielding Resilience of the Art Market: A Historical and Contemporary Perspective

    November 19, 2023

    The Evolution of Art and Art Investments: A Historical Perspective on Fruitful Returns and Wealth Management

    August 21, 2023
    Don't Miss
    Mutual Funds

    What is Expense Ratio in Mutual Funds? – Money Insights News

    August 31, 2025

    ‘Mutual Funds Sahi Hai’ is now a well-known truth among investors. This is evident in…

    Billionaires Buy 2 Magnificent Index Funds That a Wall Street Analyst Says Could Soar 132%

    August 31, 2025

    not the FTSE 100 or S&P 500)

    August 30, 2025

    Five tell-tale signs that investing money is not for you

    August 30, 2025
    Stay In Touch
    • Facebook
    • Twitter
    • Pinterest
    • Instagram
    • YouTube
    • Vimeo
    EDITOR'S PICK

    How To Find The Best Sector ETFs 1Q25

    February 12, 2025

    Commercial Vs Residential Real Estate Investing – Forbes Advisor INDIA

    June 27, 2024

    Best Mutual Fund SIP Portfolios to Invest in 2025

    May 4, 2025
    Our Picks

    What is Expense Ratio in Mutual Funds? – Money Insights News

    August 31, 2025

    Billionaires Buy 2 Magnificent Index Funds That a Wall Street Analyst Says Could Soar 132%

    August 31, 2025

    not the FTSE 100 or S&P 500)

    August 30, 2025
    Most Popular

    🔥Juve target Chukwuemeka, Inter raise funds, Elmas bid in play 🤑

    August 20, 2025

    ₹10,000 monthly SIP in this debt mutual fund has grown to over ₹70 lakh in 23 years

    June 13, 2025

    ₹1 lakh investment in these 2 ELSS mutual funds at launch would have grown to over ₹5 lakh. Check details

    April 25, 2025
    © 2025 Fund Focus News
    • Get In Touch
    • Privacy Policy
    • Terms and Conditions

    Type above and press Enter to search. Press Esc to cancel.