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Walgreens Boots Alliance (WBA) Stock Sinks As Market Gains: What You Should Know

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The most recent trading session ended with Walgreens Boots Alliance (WBA - Free Report) standing at $8.96, reflecting a -1.1% shift from the previouse trading day's closing. This change lagged the S&P 500's daily gain of 0.42%. Elsewhere, the Dow gained 0.04%, while the tech-heavy Nasdaq added 0.38%.

The the stock of largest U.S. drugstore chain has fallen by 2.05% in the past month, lagging the Retail-Wholesale sector's gain of 6.34% and the S&P 500's gain of 2.06%.

The investment community will be closely monitoring the performance of Walgreens Boots Alliance in its forthcoming earnings report. The company is scheduled to release its earnings on October 15, 2024. The company is predicted to post an EPS of $0.36, indicating a 46.27% decline compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $35.8 billion, indicating a 1.08% increase compared to the same quarter of the previous year.

Any recent changes to analyst estimates for Walgreens Boots Alliance should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.

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 past month, there's been a 15.25% fall in the Zacks Consensus EPS estimate. Walgreens Boots Alliance presently features a Zacks Rank of #4 (Sell).

Looking at valuation, Walgreens Boots Alliance is presently trading at a Forward P/E ratio of 5.13. This indicates a discount in contrast to its industry's Forward P/E of 5.53.

It is also worth noting that WBA currently has a PEG ratio of 1.03. 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 0.95 based on yesterday's closing prices.

The Retail - Pharmacies and Drug Stores industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 239, this industry ranks in the bottom 6% of all industries, numbering over 250.

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.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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