Walgreens Boots Alliance (WBA) Gains But Lags Market: What You Should Know

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This story originally appeared on Zacks

Walgreens Boots Alliance (WBA) closed the most recent trading day at $ 49.99, moving + 0.4% from the previous trading session. This change lagged the S&P 500’s 1.45% gain on the day. At the same time, the Dow added 0.86%, and the tech-heavy Nasdaq gained 0.44%.

– Zacks

Prior to today’s trading, shares of the largest US drugstore chain had lost 8.36% over the past month. This has lagged the Retail-Wholesale sector’s loss of 3.6% and the S&P 500’s loss of 3.26% in that time.

Wall Street will be looking for positivity from Walgreens Boots Alliance as it approaches its next earnings report date. On that day, Walgreens Boots Alliance is projected to report earnings of $ 1.37 per share, which would represent a year-over-year decline of 2.14%. Our most recent consensus estimate is calling for quarterly revenue of $ 33.54 billion, up 2.31% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $ 5.06 per share and revenue of $ 132.12 billion, which would represent changes of -4.71% and -3.83%, respectively, from the prior year.

Any recent changes to analyst estimates for Walgreens Boots Alliance should also be noted by investors. These revisions help to show the ever-changing nature of 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. 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, the Zacks Consensus EPS estimate has moved 0.12% lower. Walgreens Boots Alliance is currently sporting a Zacks Rank of # 3 (Hold).

In terms of valuation, Walgreens Boots Alliance is currently trading at a Forward P / E ratio of 9.83. This represents a no noticeable deviation compared to its industry’s average Forward P / E of 9.83.

It is also worth noting that WBA currently has a PEG ratio of 2.19. 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. WBA’s industry had an average PEG ratio of 1.96 as of yesterday’s close.

The Retail – Pharmacies and Drug Stores industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 101, which puts 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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