Walgreens Boots Alliance (WBA) Stock Moves -0.05%: What You Should Know
In the latest trading session, Walgreens Boots Alliance (WBA) closed at $38.22, marking a -0.05% move from the previous day. This change was narrower than the S&P 500's daily loss of 1.29%. Meanwhile, the Dow lost 0.86%, and the Nasdaq, a tech-heavy index, lost 0.44%.
Heading into today, shares of the largest U.S. drugstore chain had lost 0.57% over the past month, lagging the Retail-Wholesale sector's gain of 12.9% and the S&P 500's gain of 11.99% in that time.
Investors will be hoping for strength from Walgreens Boots Alliance as it approaches its next earnings release. The company is expected to report EPS of $0.78, down 33.33% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $32.49 billion, down 5.17% from the prior-year quarter.
WBA's full-year Zacks Consensus Estimates are calling for earnings of $5.02 per share and revenue of $132.65 billion. These results would represent year-over-year changes of -5.46% and -3.44%, respectively.
Investors should also note any recent changes to analyst estimates for Walgreens Boots Alliance. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 0.11% lower. Walgreens Boots Alliance is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note Walgreens Boots Alliance's current valuation metrics, including its Forward P/E ratio of 7.61. Its industry sports an average Forward P/E of 9, so we one might conclude that Walgreens Boots Alliance is trading at a discount comparatively.
Investors should also note that WBA has a PEG ratio of 1.52 right now. 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. The Retail - Pharmacies and Drug Stores was holding an average PEG ratio of 1.55 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 97, which puts it in the top 39% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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Walgreens Boots Alliance, Inc. (WBA) : Free Stock Analysis Report
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