Walgreens Boots Alliance (WBA) closed at $35.32 in the latest trading session, marking a +0.14% move from the prior day. This move outpaced the S&P 500's daily loss of 0.41%.
Heading into today, shares of the largest U.S. drugstore chain had lost 10.66% over the past month, lagging the Retail-Wholesale sector's loss of 4.15% and the S&P 500's loss of 5.13% in that time.
Walgreens Boots Alliance will be looking to display strength as it nears its next earnings release. On that day, Walgreens Boots Alliance is projected to report earnings of $0.78 per share, which would represent a year-over-year decline of 33.33%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $32.49 billion, down 5.17% from the year-ago period.
Any recent changes to analyst estimates for Walgreens Boots Alliance should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Within the past 30 days, our consensus EPS projection remained stagnant. Walgreens Boots Alliance is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, Walgreens Boots Alliance currently has a Forward P/E ratio of 7.61. For comparison, its industry has an average Forward P/E of 7.61, which means Walgreens Boots Alliance is trading at a no noticeable deviation to the group.
Meanwhile, WBA's PEG ratio is currently 1.52. 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. Retail - Pharmacies and Drug Stores stocks are, on average, holding a PEG ratio of 1.52 based on yesterday's closing prices.
The Retail - Pharmacies and Drug Stores industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 93, which puts it in the top 37% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Walgreens Boots Alliance, Inc. (WBA) : Free Stock Analysis Report
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