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Walgreens Boots Alliance (WBA) Stock Dips While Market Gains: Key Facts

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Walgreens Boots Alliance (WBA - Free Report) closed at $21.03 in the latest trading session, marking a -0.9% move from the prior day. This move lagged the S&P 500's daily gain of 0.74%. Meanwhile, the Dow experienced a rise of 0.58%, and the technology-dominated Nasdaq saw an increase of 1.13%.

Market participants will be closely following the financial results of Walgreens Boots Alliance in its upcoming release. The company is expected to report EPS of $0.68, down 41.38% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $34.75 billion, indicating a 4.1% upward movement from the same quarter last year.

For the full year, the Zacks Consensus Estimates project earnings of $3.38 per share and a revenue of $142.8 billion, demonstrating changes of -15.08% and +2.67%, respectively, from the preceding year.

Investors should also pay attention to any latest changes in analyst estimates for Walgreens Boots Alliance. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.26% decrease. Walgreens Boots Alliance presently features a Zacks Rank of #4 (Sell).

Investors should also note Walgreens Boots Alliance's current valuation metrics, including its Forward P/E ratio of 6.28. Its industry sports an average Forward P/E of 6.39, so one might conclude that Walgreens Boots Alliance is trading at a discount comparatively.

Meanwhile, WBA's PEG ratio is currently 1.26. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Retail - Pharmacies and Drug Stores industry had an average PEG ratio of 1.53 as trading concluded yesterday.

The Retail - Pharmacies and Drug Stores industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 184, putting it in the bottom 27% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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