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

Walgreens Boots Alliance (WBA) closed the latest trading day at $17.82, indicating a -1.98% change from the previous session's end. This move lagged the S&P 500's daily gain of 0.09%. At the same time, the Dow lost 0.49%, and the tech-heavy Nasdaq gained 0.65%.

Shares of the largest U.S. drugstore chain witnessed a loss of 0.33% over the previous month, trailing the performance of the Retail-Wholesale sector with its gain of 5.59% and the S&P 500's gain of 5.78%.

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 upcoming EPS is projected at $0.68, signifying a 32% drop compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $36.02 billion, indicating a 1.69% upward movement from the same quarter last year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $3.23 per share and revenue of $145.98 billion, which would represent changes of -18.84% and +4.96%, respectively, from the prior year.

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Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Walgreens Boots Alliance. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. 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 5.63. This valuation marks a discount compared to its industry's average Forward P/E of 6.44.

Meanwhile, WBA's PEG ratio is currently 1.13. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. WBA's industry had an average PEG ratio of 0.83 as of yesterday's close.

The Retail - Pharmacies and Drug Stores industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 233, finds itself in the bottom 8% echelons of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within 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

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