Walgreens Boots Alliance (WBA) closed the most recent trading day at $41.70, moving +0.06% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.01%. Elsewhere, the Dow lost 0.45%, while the tech-heavy Nasdaq added 0.78%.
Wall Street will be looking for positivity from WBA as it approaches its next earnings report date. In that report, analysts expect WBA to post earnings of $1.18 per share. This would mark a year-over-year decline of 19.73%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $34.23 billion, down 1.03% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $5.53 per share and revenue of $138.47 billion, which would represent changes of -7.68% and +1.17%, respectively, from the prior year.
Any recent changes to analyst estimates for WBA should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. WBA currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that WBA has a Forward P/E ratio of 7.53 right now. Its industry sports an average Forward P/E of 8.91, so we one might conclude that WBA is trading at a discount comparatively.
Investors should also note that WBA has a PEG ratio of 1.92 right now. 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 1.67 at yesterday's closing price.
The Retail - Pharmacies and Drug Stores industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 194, which puts it in the bottom 24% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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