Walgreens Boots Alliance (WBA) Stock Declines While Market Improves: Some Information for Investors
Walgreens Boots Alliance (WBA) ended the recent trading session at $20.89, demonstrating a -0.57% swing from the preceding day's closing price. This change lagged the S&P 500's 0.51% gain on the day. Elsewhere, the Dow saw an upswing of 0.2%, while the tech-heavy Nasdaq appreciated by 0.58%.
The the stock of largest U.S. drugstore chain has fallen by 9.09% in the past month, lagging the Retail-Wholesale sector's gain of 4.13% and the S&P 500's gain of 2.94%.
Analysts and investors alike will be keeping a close eye on the performance of Walgreens Boots Alliance in its upcoming earnings disclosure. The company's earnings report is set to go public on March 28, 2024. The company's upcoming EPS is projected at $0.84, signifying a 27.59% drop compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $36.48 billion, indicating a 4.65% upward movement from the same quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $3.25 per share and a revenue of $144.72 billion, signifying shifts of -18.34% and +4.05%, respectively, from the last year.
Investors should also note any recent changes to analyst estimates for Walgreens Boots Alliance. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.01% lower within the past month. At present, Walgreens Boots Alliance boasts a Zacks Rank of #3 (Hold).
In terms of valuation, Walgreens Boots Alliance is currently trading at a Forward P/E ratio of 6.47. This valuation marks no noticeable deviation compared to its industry's average Forward P/E of 6.47.
Also, we should mention that WBA has a PEG ratio of 1.29. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Retail - Pharmacies and Drug Stores industry had an average PEG ratio of 1.19.
The Retail - Pharmacies and Drug Stores industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 235, this industry ranks in the bottom 7% 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.
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
