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Walgreens Boots Alliance (WBA) Gains But Lags Market: What You Should Know
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Walgreens Boots Alliance (WBA - Free Report) closed the most recent trading day at $36.80, moving +0.08% from the previous trading session. This move lagged the S&P 500's daily gain of 1.41%. At the same time, the Dow added 0.98%, and the tech-heavy Nasdaq lost 0.08%.
Coming into today, shares of the largest U.S. drugstore chain had lost 6.25% in the past month. In that same time, the Retail-Wholesale sector gained 4.43%, while the S&P 500 gained 4.68%.
Investors will be hoping for strength from Walgreens Boots Alliance as it approaches its next earnings release. On that day, Walgreens Boots Alliance is projected to report earnings of $0.78 per share, which would represent a year-over-year decline of 33.33%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $32.49 billion, down 5.17% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.02 per share and revenue of $132.65 billion. These totals would mark changes of -5.46% and -3.44%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Walgreens Boots Alliance. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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. Within the past 30 days, our consensus EPS projection remained stagnant. Walgreens Boots Alliance is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Walgreens Boots Alliance currently has a Forward P/E ratio of 7.32. This represents a discount compared to its industry's average Forward P/E of 7.97.
We can also see that WBA currently has a PEG ratio of 1.46. 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 1.5 at yesterday's closing price.
The Retail - Pharmacies and Drug Stores industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 99, putting it in the top 40% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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 (WBA) Gains But Lags Market: What You Should Know
Walgreens Boots Alliance (WBA - Free Report) closed the most recent trading day at $36.80, moving +0.08% from the previous trading session. This move lagged the S&P 500's daily gain of 1.41%. At the same time, the Dow added 0.98%, and the tech-heavy Nasdaq lost 0.08%.
Coming into today, shares of the largest U.S. drugstore chain had lost 6.25% in the past month. In that same time, the Retail-Wholesale sector gained 4.43%, while the S&P 500 gained 4.68%.
Investors will be hoping for strength from Walgreens Boots Alliance as it approaches its next earnings release. On that day, Walgreens Boots Alliance is projected to report earnings of $0.78 per share, which would represent a year-over-year decline of 33.33%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $32.49 billion, down 5.17% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.02 per share and revenue of $132.65 billion. These totals would mark changes of -5.46% and -3.44%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Walgreens Boots Alliance. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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. Within the past 30 days, our consensus EPS projection remained stagnant. Walgreens Boots Alliance is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Walgreens Boots Alliance currently has a Forward P/E ratio of 7.32. This represents a discount compared to its industry's average Forward P/E of 7.97.
We can also see that WBA currently has a PEG ratio of 1.46. 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 1.5 at yesterday's closing price.
The Retail - Pharmacies and Drug Stores industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 99, putting it in the top 40% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.