Walgreens Boots Alliance (WBA) Stock Moves -0.69%: What You Should Know
In the latest market close, Walgreens Boots Alliance (WBA) reached $17.23, with a -0.69% movement compared to the previous day. Elsewhere, the Dow saw an upswing of 0.44%, while the tech-heavy Nasdaq depreciated by 0.18%.
Prior to today's trading, shares of the largest U.S. drugstore chain had lost 9.54% over the past month. This has lagged the Retail-Wholesale sector's gain of 0.94% and the S&P 500's loss of 0.22% in that time.
The investment community will be closely monitoring the performance of Walgreens Boots Alliance in its forthcoming earnings report. It is anticipated that the company will report an EPS of $0.68, marking a 32% fall compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $36.02 billion, up 1.69% from the prior-year quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $3.23 per share and a revenue of $145.98 billion, representing changes of -18.84% and +4.96%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Walgreens Boots Alliance. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.17% lower. Walgreens Boots Alliance is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Walgreens Boots Alliance has a Forward P/E ratio of 5.38 right now. For comparison, its industry has an average Forward P/E of 5.95, which means Walgreens Boots Alliance is trading at a discount to the group.
It is also worth noting that WBA currently has a PEG ratio of 1.08. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Retail - Pharmacies and Drug Stores industry was having an average PEG ratio of 0.96.
The Retail - Pharmacies and Drug Stores industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 234, placing it within the bottom 8% of over 250 industries.
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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Walgreens Boots Alliance, Inc. (WBA) : Free Stock Analysis Report
