Walgreens Boots Alliance (WBA) closed at $31.17 in the latest trading session, marking a -1.33% move from the prior day. This change lagged the S&P 500's daily loss of 0.17%. Meanwhile, the Dow lost 0.66%, and the Nasdaq, a tech-heavy index, lost 6.09%.
Prior to today's trading, shares of the largest U.S. drugstore chain had lost 11.49% over the past month. This has lagged the Retail-Wholesale sector's gain of 1.02% and the S&P 500's gain of 0.75% in that time.
Investors will be hoping for strength from Walgreens Boots Alliance as it approaches its next earnings release. On that day, Walgreens Boots Alliance is projected to report earnings of $1.10 per share, which would represent year-over-year growth of 14.58%. Our most recent consensus estimate is calling for quarterly revenue of $33.84 billion, up 3.83% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.50 per share and revenue of $136.18 billion, which would represent changes of -10.71% and +2.62%, respectively, from the prior year.
Investors should also note any 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.11% lower. Walgreens Boots Alliance is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note Walgreens Boots Alliance's current valuation metrics, including its Forward P/E ratio of 7.03. Its industry sports an average Forward P/E of 7.03, so we one might conclude that Walgreens Boots Alliance is trading at a no noticeable deviation comparatively.
It is also worth noting that WBA currently has a PEG ratio of 2.32. 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. WBA's industry had an average PEG ratio of 1.71 as of yesterday's close.
The Retail - Pharmacies and Drug Stores industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 237, putting it in the bottom 6% 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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