Goldman Sachs Believes Wal-Mart Could Pop On Earnings News (WMT)

In a company note, Goldman Sachs analysts wrote that Wal-Mart WMT "could get a lift on 3Q guidance given negative sentiment." Consensus estimates are that WMT will earn $0.97 per share in the third quarter. The company will report earnings tomorrow morning prior to the opening bell. The analysts further said that, "We believe inline with consensus. Despite our reduction, we believe Wal-Mart shares could bounce given muted expectations as investors are increasingly worried about an earnings miss, as evidenced by the company trading at a trough multiple of less than 12x our 2011 estimate. Given a low bar heading into the quarter, we look for an inline 2Q and decent 3Q guidance ($0.90-$0.95 versus $0.91 consensus) to be enough to lift shares." During today's trading session, WMT has gained 0.04% to $50.42. Get free trades at tradeMONSTER!