Walgreens Boots Alliance (WBA) closed at $33.43 in the latest trading session, marking a -1.65% move from the prior day. This change was narrower than the S&P 500's daily loss of 1.71%. At the same time, the Dow lost 1.7%, and the tech-heavy Nasdaq lost 0.07%.
Coming into today, shares of the largest U.S. drugstore chain had lost 9.21% in the past month. In that same time, the Retail-Wholesale sector lost 7.43%, while the S&P 500 lost 8.68%.
Investors will be hoping for strength from Walgreens Boots Alliance as it approaches its next earnings release, which is expected to be October 13, 2022. The company is expected to report EPS of $0.78, down 33.33% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $32.49 billion, down 5.17% from the year-ago period.
It is also important to note the recent changes to 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.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. Walgreens Boots Alliance currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, Walgreens Boots Alliance is holding a Forward P/E ratio of 7.34. This represents a no noticeable deviation compared to its industry's average Forward P/E of 7.34.
Meanwhile, WBA's PEG ratio is currently 1.47. 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 1.51 at yesterday's closing price.
The Retail - Pharmacies and Drug Stores industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 95, which puts it in the top 38% 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.
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Walgreens Boots Alliance, Inc. (WBA) : Free Stock Analysis Report
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