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Walgreens Boots Alliance (WBA) Gains As Market Dips: What You Should Know

In the latest trading session, Walgreens Boots Alliance (WBA) closed at $41.08, marking a +0.66% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.16%. Meanwhile, the Dow gained 0.01%, and the Nasdaq, a tech-heavy index, lost 0.02%.

Heading into today, shares of the largest U.S. drugstore chain had gained 11.81% over the past month, outpacing the Retail-Wholesale sector's gain of 3.13% and the S&P 500's gain of 1.83% in that time.

Investors will be hoping for strength from Walgreens Boots Alliance as it approaches its next earnings release. In that report, analysts expect Walgreens Boots Alliance to post earnings of $1.14 per share. This would mark a year-over-year decline of 32.14%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $33 billion, down 2.65% from the year-ago period.

WBA's full-year Zacks Consensus Estimates are calling for earnings of $4.50 per share and revenue of $132.98 billion. These results would represent year-over-year changes of -10.71% and +0.21%, respectively.

Investors should also note any recent changes to analyst estimates for Walgreens Boots Alliance. These revisions typically reflect the latest short-term business trends, which can change frequently. 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.

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 0.62% higher within the past month. Walgreens Boots Alliance is holding a Zacks Rank of #3 (Hold) right now.

Investors should also note Walgreens Boots Alliance's current valuation metrics, including its Forward P/E ratio of 9.06. For comparison, its industry has an average Forward P/E of 9.06, which means Walgreens Boots Alliance is trading at a no noticeable deviation to the group.

We can also see that WBA currently has a PEG ratio of 1.81. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Retail - Pharmacies and Drug Stores stocks are, on average, holding a PEG ratio of 1.69 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 208, putting it in the bottom 18% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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Walgreens Boots Alliance, Inc. (WBA) : Free Stock Analysis Report

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