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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 $61.92, moving +0.37% from the previous trading session. This move lagged the S&P 500's daily gain of 0.72%. At the same time, the Dow added 0.55%, and the tech-heavy Nasdaq gained 0.71%.
Heading into today, shares of the largest U.S. drugstore chain had lost 13.49% over the past month, lagging the Retail-Wholesale sector's gain of 1.76% and the S&P 500's gain of 0.28% in that time.
WBA will be looking to display strength as it nears its next earnings release, which is expected to be April 2, 2019. On that day, WBA is projected to report earnings of $1.70 per share, which would represent a year-over-year decline of 1.73%. Our most recent consensus estimate is calling for quarterly revenue of $34.87 billion, up 5.58% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.42 per share and revenue of $137.16 billion. These totals would mark changes of +6.64% and +4.28%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for WBA. 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Within the past 30 days, our consensus EPS projection has moved 1.81% lower. WBA currently has a Zacks Rank of #4 (Sell).
Valuation is also important, so investors should note that WBA has a Forward P/E ratio of 9.61 right now. For comparison, its industry has an average Forward P/E of 12.87, which means WBA is trading at a discount to the group.
Investors should also note that WBA has a PEG ratio of 1.01 right now. 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. Retail - Pharmacies and Drug Stores stocks are, on average, holding a PEG ratio of 1.06 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 234, which puts it in the bottom 9% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
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 $61.92, moving +0.37% from the previous trading session. This move lagged the S&P 500's daily gain of 0.72%. At the same time, the Dow added 0.55%, and the tech-heavy Nasdaq gained 0.71%.
Heading into today, shares of the largest U.S. drugstore chain had lost 13.49% over the past month, lagging the Retail-Wholesale sector's gain of 1.76% and the S&P 500's gain of 0.28% in that time.
WBA will be looking to display strength as it nears its next earnings release, which is expected to be April 2, 2019. On that day, WBA is projected to report earnings of $1.70 per share, which would represent a year-over-year decline of 1.73%. Our most recent consensus estimate is calling for quarterly revenue of $34.87 billion, up 5.58% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.42 per share and revenue of $137.16 billion. These totals would mark changes of +6.64% and +4.28%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for WBA. 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Within the past 30 days, our consensus EPS projection has moved 1.81% lower. WBA currently has a Zacks Rank of #4 (Sell).
Valuation is also important, so investors should note that WBA has a Forward P/E ratio of 9.61 right now. For comparison, its industry has an average Forward P/E of 12.87, which means WBA is trading at a discount to the group.
Investors should also note that WBA has a PEG ratio of 1.01 right now. 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. Retail - Pharmacies and Drug Stores stocks are, on average, holding a PEG ratio of 1.06 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 234, which puts it in the bottom 9% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.