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Walgreens Boots Alliance (WBA) closed at $40.20 in the latest trading session, marking a -0.2% move from the prior day. This change was narrower than the S&P 500's 0.38% loss on the day. Meanwhile, the Dow lost 0.5%, and the Nasdaq, a tech-heavy index, lost 0.5%.
Heading into today, shares of the largest U.S. drugstore chain had lost 8.77% over the past month, lagging the Retail-Wholesale sector's loss of 6.99% and the S&P 500's loss of 6.69% in that time.
Walgreens Boots Alliance will be looking to display strength as it nears its next earnings release, which is expected to be June 30, 2022. On that day, Walgreens Boots Alliance is projected to report earnings of $0.97 per share, which would represent a year-over-year decline of 35.76%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $32.74 billion, down 3.8% from the year-ago period.
WBA's full-year Zacks Consensus Estimates are calling for earnings of $5.06 per share and revenue of $132.74 billion. These results would represent year-over-year changes of -4.71% and -3.38%, respectively.
It is also important to note the recent changes to analyst estimates for Walgreens Boots Alliance. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.02% lower. Walgreens Boots Alliance is currently a Zacks Rank #4 (Sell).
Valuation is also important, so investors should note that Walgreens Boots Alliance has a Forward P/E ratio of 7.97 right now. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 7.97.
Also, we should mention that WBA has a PEG ratio of 2.19. 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. Retail - Pharmacies and Drug Stores stocks are, on average, holding a PEG ratio of 1.82 based on yesterday's closing prices.
The Retail - Pharmacies and Drug Stores industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 244, putting it in the bottom 4% 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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