Walgreens Boots Alliance (WBA) closed the most recent trading day at $52.28, moving -0.91% from the previous trading session. This move was narrower than the S&P 500's daily loss of 1.56%. Meanwhile, the Dow lost 1.19%, and the Nasdaq, a tech-heavy index, lost 1.67%.
Prior to today's trading, shares of the largest U.S. drugstore chain had lost 5.09% over the past month. This has lagged the Retail-Wholesale sector's loss of 3.42% and the S&P 500's loss of 1.22% in that time.
WBA will be looking to display strength as it nears its next earnings release, which is expected to be October 28, 2019. On that day, WBA is projected to report earnings of $1.41 per share, which would represent a year-over-year decline of 4.73%. Our most recent consensus estimate is calling for quarterly revenue of $33.90 billion, up 1.38% from the year-ago period.
Investors should also note any recent changes to analyst estimates for WBA. 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.
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. Over the past month, the Zacks Consensus EPS estimate has moved 1.08% lower. WBA is holding a Zacks Rank of #4 (Sell) right now.
Digging into valuation, WBA currently has a Forward P/E ratio of 8.9. Its industry sports an average Forward P/E of 8.9, so we one might conclude that WBA is trading at a no noticeable deviation comparatively.
Investors should also note that WBA has a PEG ratio of 1.34 right now. 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. WBA's industry had an average PEG ratio of 1.34 as of yesterday's close.
The Retail - Pharmacies and Drug Stores industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 177, putting it in the bottom 31% 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.
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
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