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Walgreens Boots Alliance (WBA) Dips More Than Broader Markets: What You Should Know

Walgreens Boots Alliance (WBA) closed the most recent trading day at $37.09, moving -1.64% from the previous trading session. This move lagged the S&P 500's daily loss of 1.04%. Meanwhile, the Dow lost 0.38%, and the Nasdaq, a tech-heavy index, lost 5.88%.

Heading into today, shares of the largest U.S. drugstore chain had gained 7.16% over the past month, lagging the Retail-Wholesale sector's gain of 15.74% and the S&P 500's gain of 8.97% 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 $1.10 per share. This would mark a year-over-year decline of 30.82%. Our most recent consensus estimate is calling for quarterly revenue of $33.45 billion, down 0.92% from the year-ago period.

WBA's full-year Zacks Consensus Estimates are calling for earnings of $4.50 per share and revenue of $134.51 billion. These results would represent year-over-year changes of -10.71% and +1.36%, respectively.

Investors should also note any recent changes to analyst estimates for Walgreens Boots Alliance. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

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. Over the past month, the Zacks Consensus EPS estimate has moved 0.17% lower. Walgreens Boots Alliance is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, Walgreens Boots Alliance is currently trading at a Forward P/E ratio of 8.38. For comparison, its industry has an average Forward P/E of 8.38, 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 1.68. 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 1.51 based on yesterday's closing prices.

The Retail - Pharmacies and Drug Stores industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 100, which puts it in the top 40% 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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