Walgreens Boots Alliance (WBA) Stock Sinks As Market Gains: What You Should Know
In the latest market close, Walgreens Boots Alliance (WBA) reached $21.57, with a -0.83% movement compared to the previous day. This move lagged the S&P 500's daily gain of 2.11%. On the other hand, the Dow registered a gain of 1.18%, and the technology-centric Nasdaq increased by 2.96%.
Shares of the largest U.S. drugstore chain have depreciated by 2.77% over the course of the past month, underperforming the Retail-Wholesale sector's gain of 4.94% and the S&P 500's gain of 3.08%.
The upcoming earnings release of Walgreens Boots Alliance will be of great interest to investors. The company's earnings per share (EPS) are projected to be $0.84, reflecting a 27.59% decrease from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $36.41 billion, up 4.44% from the prior-year quarter.
WBA's full-year Zacks Consensus Estimates are calling for earnings of $3.24 per share and revenue of $144.34 billion. These results would represent year-over-year changes of -18.59% and +3.78%, respectively.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Walgreens Boots Alliance. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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. The Zacks Consensus EPS estimate has moved 1.06% lower within the past month. Currently, Walgreens Boots Alliance is carrying a Zacks Rank of #3 (Hold).
From a valuation perspective, Walgreens Boots Alliance is currently exchanging hands at a Forward P/E ratio of 6.71. This denotes no noticeable deviation relative to the industry's average Forward P/E of 6.71.
It is also worth noting that WBA currently has a PEG ratio of 1.34. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Retail - Pharmacies and Drug Stores industry was having an average PEG ratio of 1.55.
The Retail - Pharmacies and Drug Stores industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 232, this industry ranks in the bottom 8% of all industries, numbering over 250.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Walgreens Boots Alliance, Inc. (WBA) : Free Stock Analysis Report
