Walgreens Boots Alliance (WBA) closed the most recent trading day at $62.25, moving -0.75% from the previous trading session. This change lagged the S&P 500's daily gain of 0.07%. Meanwhile, the Dow gained 0.33%, and the Nasdaq, a tech-heavy index, lost 0.05%.
Prior to today's trading, shares of the largest U.S. drugstore chain had gained 15.05% over the past month. This has outpaced the Retail-Wholesale sector's gain of 2.17% and the S&P 500's gain of 4.3% in that time.
Investors will be hoping for strength from WBA as it approaches its next earnings release. In that report, analysts expect WBA to post earnings of $1.39 per share. This would mark a year-over-year decline of 4.79%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $34.59 billion, up 2.36% from the year-ago period.
WBA's full-year Zacks Consensus Estimates are calling for earnings of $5.93 per share and revenue of $139.86 billion. These results would represent year-over-year changes of -1% and +2.19%, respectively.
Investors might also notice recent changes to analyst estimates for WBA. These revisions help to show the ever-changing nature of 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.
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 0.1% higher. WBA is currently sporting a Zacks Rank of #4 (Sell).
Looking at its valuation, WBA is holding a Forward P/E ratio of 10.57. Its industry sports an average Forward P/E of 11.26, so we one might conclude that WBA is trading at a discount comparatively.
Meanwhile, WBA's PEG ratio is currently 1.56. 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 1.56 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 177, which puts it in the bottom 31% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Walgreens Boots Alliance, Inc. (WBA) : Free Stock Analysis Report
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