Walgreens Boots Alliance (WBA) Gains As Market Dips: What You Should Know
Walgreens Boots Alliance (WBA) closed the most recent trading day at $39.32, moving +0.69% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.9%. At the same time, the Dow lost 0.5%, and the tech-heavy Nasdaq lost 0.27%.
Coming into today, shares of the largest U.S. drugstore chain had lost 1.76% in the past month. In that same time, the Retail-Wholesale sector lost 2.94%, while the S&P 500 lost 2.66%.
Walgreens Boots Alliance will be looking to display strength as it nears its next earnings release, which is expected to be January 5, 2023. In that report, analysts expect Walgreens Boots Alliance to post earnings of $1.14 per share. This would mark a year-over-year decline of 32.14%. Meanwhile, our latest consensus estimate is calling for revenue of $33 billion, down 2.65% from the prior-year quarter.
WBA's full-year Zacks Consensus Estimates are calling for earnings of $4.51 per share and revenue of $133.12 billion. These results would represent year-over-year changes of -10.52% and +0.31%, respectively.
Investors might also notice recent changes to analyst estimates for Walgreens Boots Alliance. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.26% higher. Walgreens Boots Alliance is currently a Zacks Rank #3 (Hold).
Digging into valuation, Walgreens Boots Alliance currently has a Forward P/E ratio of 8.66. For comparison, its industry has an average Forward P/E of 8.66, which means Walgreens Boots Alliance is trading at a no noticeable deviation to the group.
It is also worth noting that WBA currently has a PEG ratio of 2.86. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Retail - Pharmacies and Drug Stores was holding an average PEG ratio of 2.18 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 213, putting it in the bottom 16% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Walgreens Boots Alliance, Inc. (WBA) : Free Stock Analysis Report
