Yahoo Finance Walgreens Boots Alliance (WBA) Outperforms Broader Market: What You Need to Know
In the latest market close, Walgreens Boots Alliance (WBA) reached $18.35, with a +1.27% movement compared to the previous day. The stock exceeded the S&P 500, which registered a gain of 0.48% for the day. On the other hand, the Dow registered a gain of 0.32%, and the technology-centric Nasdaq increased by 0.75%.
Shares of the largest U.S. drugstore chain witnessed a gain of 2.66% over the previous month, beating the performance of the Retail-Wholesale sector with its gain of 2.45% and the S&P 500's gain of 2%.
Market participants will be closely following the financial results of Walgreens Boots Alliance in its upcoming release. The company is expected to report EPS of $0.68, down 32% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $36.02 billion, up 1.69% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $3.23 per share and a revenue of $145.98 billion, indicating changes of -18.84% and +4.96%, respectively, from the former year.
Investors should also pay attention to any latest changes in analyst estimates for Walgreens Boots Alliance. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.17% decrease. Walgreens Boots Alliance is holding a Zacks Rank of #3 (Hold) right now.
From a valuation perspective, Walgreens Boots Alliance is currently exchanging hands at a Forward P/E ratio of 5.61. This represents a discount compared to its industry's average Forward P/E of 6.43.
It is also worth noting that WBA currently has a PEG ratio of 1.12. 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 0.99 at yesterday's closing price.
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 strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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
