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Walgreens Boots Alliance (WBA) Stock Sinks As Market Gains: What You Should Know
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Walgreens Boots Alliance (WBA - Free Report) closed the most recent trading day at $25.17, moving -0.36% from the previous trading session. This move lagged the S&P 500's daily gain of 0.63%. Meanwhile, the Dow gained 0.62%, and the Nasdaq, a tech-heavy index, added 0.84%.
Heading into today, shares of the largest U.S. drugstore chain had lost 15.24% over the past month, lagging the Retail-Wholesale sector's loss of 1.91% and the S&P 500's loss of 3.37% in that time.
Walgreens Boots Alliance will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.69, down 13.75% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $34.57 billion, up 6.54% from the year-ago period.
WBA's full-year Zacks Consensus Estimates are calling for earnings of $4 per share and revenue of $138.16 billion. These results would represent year-over-year changes of -20.63% and +4.12%, respectively.
Investors should also note any recent changes to analyst estimates for Walgreens Boots Alliance. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.02% lower. Walgreens Boots Alliance is currently a Zacks Rank #4 (Sell).
Digging into valuation, Walgreens Boots Alliance currently has a Forward P/E ratio of 6.31. For comparison, its industry has an average Forward P/E of 6.74, which means Walgreens Boots Alliance is trading at a discount to the group.
Meanwhile, WBA's PEG ratio is currently 1.26. 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 1.27 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 197, putting it in the bottom 22% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Walgreens Boots Alliance (WBA) Stock Sinks As Market Gains: What You Should Know
Walgreens Boots Alliance (WBA - Free Report) closed the most recent trading day at $25.17, moving -0.36% from the previous trading session. This move lagged the S&P 500's daily gain of 0.63%. Meanwhile, the Dow gained 0.62%, and the Nasdaq, a tech-heavy index, added 0.84%.
Heading into today, shares of the largest U.S. drugstore chain had lost 15.24% over the past month, lagging the Retail-Wholesale sector's loss of 1.91% and the S&P 500's loss of 3.37% in that time.
Walgreens Boots Alliance will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.69, down 13.75% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $34.57 billion, up 6.54% from the year-ago period.
WBA's full-year Zacks Consensus Estimates are calling for earnings of $4 per share and revenue of $138.16 billion. These results would represent year-over-year changes of -20.63% and +4.12%, respectively.
Investors should also note any recent changes to analyst estimates for Walgreens Boots Alliance. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.02% lower. Walgreens Boots Alliance is currently a Zacks Rank #4 (Sell).
Digging into valuation, Walgreens Boots Alliance currently has a Forward P/E ratio of 6.31. For comparison, its industry has an average Forward P/E of 6.74, which means Walgreens Boots Alliance is trading at a discount to the group.
Meanwhile, WBA's PEG ratio is currently 1.26. 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 1.27 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 197, putting it in the bottom 22% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.