Walgreens Boots Alliance (WBA) closed at $53.57 in the latest trading session, marking a -1.65% move from the prior day. This change lagged the S&P 500's 0.16% loss on the day. Elsewhere, the Dow lost 0.43%, while the tech-heavy Nasdaq lost 0.14%.
Prior to today's trading, shares of the largest U.S. drugstore chain had gained 0.07% over the past month. This has lagged the Retail-Wholesale sector's gain of 4.24% and the S&P 500's gain of 3.63% in that time.
Wall Street will be looking for positivity from WBA as it approaches its next earnings report date. On that day, WBA is projected to report earnings of $1.47 per share, which would represent a year-over-year decline of 10.37%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $35.30 billion, up 2.23% from the year-ago period.
WBA's full-year Zacks Consensus Estimates are calling for earnings of $5.86 per share and revenue of $139.90 billion. These results would represent year-over-year changes of -2.17% and +2.21%, respectively.
Investors might also notice recent changes to analyst estimates for WBA. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.17% lower within the past month. WBA is currently a Zacks Rank #4 (Sell).
Investors should also note WBA's current valuation metrics, including its Forward P/E ratio of 9.29. This valuation marks a discount compared to its industry's average Forward P/E of 10.32.
It is also worth noting that WBA currently has a PEG ratio of 1.42. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Retail - Pharmacies and Drug Stores was holding an average PEG ratio of 1.42 at yesterday's closing price.
The Retail - Pharmacies and Drug Stores industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 58, putting it in the top 23% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.