Walgreens Boots Alliance (WBA) Stock Sinks As Market Gains: What You Should Know

·3 min read

In the latest trading session, Walgreens Boots Alliance (WBA) closed at $33.29, marking a -0.83% move from the previous day. This change lagged the S&P 500's 1.68% gain on the day. At the same time, the Dow added 1.06%, and the tech-heavy Nasdaq lost 1.7%.

Coming into today, shares of the largest U.S. drugstore chain had lost 9.54% in the past month. In that same time, the Retail-Wholesale sector lost 8.24%, while the S&P 500 lost 6.68%.

Investors will be hoping for strength from Walgreens Boots Alliance as it approaches its next earnings release, which is expected to be March 28, 2023. In that report, analysts expect Walgreens Boots Alliance to post earnings of $1.10 per share. This would mark a year-over-year decline of 30.82%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $33.45 billion, down 0.92% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.50 per share and revenue of $134.51 billion. These totals would mark changes of -10.71% and +1.36%, respectively, from last year.

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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Walgreens Boots Alliance is currently a Zacks Rank #3 (Hold).

Valuation is also important, so investors should note that Walgreens Boots Alliance has a Forward P/E ratio of 7.46 right now. Its industry sports an average Forward P/E of 7.46, so we one might conclude that Walgreens Boots Alliance is trading at a no noticeable deviation comparatively.

It is also worth noting that WBA currently has a PEG ratio of 1.49. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. 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 industry currently has a Zacks Industry Rank of 23, which puts it in the top 10% 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.

To follow WBA in the coming trading sessions, be sure to utilize Zacks.com.

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