Walgreens Boots Alliance (WBA) Declines More Than Market: Some Information for Investors
Walgreens Boots Alliance (WBA) closed the latest trading day at $20.58, indicating a -1.06% change from the previous session's end. This change lagged the S&P 500's daily loss of 0.14%. Elsewhere, the Dow lost 0.77%, while the tech-heavy Nasdaq added 0.17%.
The largest U.S. drugstore chain's shares have seen a decrease of 3.57% over the last month, not keeping up with the Retail-Wholesale sector's gain of 5.09% and the S&P 500's gain of 5.34%.
Investors will be eagerly watching for the performance of Walgreens Boots Alliance in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on March 28, 2024. In that report, analysts expect Walgreens Boots Alliance to post earnings of $0.82 per share. This would mark a year-over-year decline of 29.31%. Meanwhile, our latest consensus estimate is calling for revenue of $36.48 billion, up 4.65% from the prior-year quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $3.24 per share and a revenue of $144.72 billion, representing changes of -18.59% and +4.05%, respectively, from the prior year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Walgreens Boots Alliance. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.1% lower. As of now, Walgreens Boots Alliance holds a Zacks Rank of #4 (Sell).
Looking at its valuation, Walgreens Boots Alliance is holding a Forward P/E ratio of 6.42. This indicates no noticeable deviation in contrast to its industry's Forward P/E of 6.42.
Investors should also note that WBA has a PEG ratio of 1.28 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Retail - Pharmacies and Drug Stores stocks are, on average, holding a PEG ratio of 1.16 based on yesterday's closing prices.
The Retail - Pharmacies and Drug Stores industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 241, positioning it in the bottom 5% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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
Walgreens Boots Alliance, Inc. (WBA) : Free Stock Analysis Report
