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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 $54.71, moving +1.05% from the previous trading session. This move lagged the S&P 500's daily gain of 1.49%.
Prior to today's trading, shares of the largest U.S. drugstore chain had gained 0.78% over the past month. This has outpaced the Retail-Wholesale sector's loss of 5.6% and the S&P 500's loss of 0.62% in that time.
Investors will be hoping for strength from WBA as it approaches its next earnings release. The company is expected to report EPS of $1.15, up 38.55% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $33.65 billion, down 2.82% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.89 per share and revenue of $133.38 billion, which would represent changes of +3.16% and -4.41%, respectively, from the prior year.
Any recent changes to analyst estimates for WBA should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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.
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. The Zacks Consensus EPS estimate has moved 1.84% lower within the past month. WBA is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, WBA is holding a Forward P/E ratio of 11.08. This valuation marks a premium compared to its industry's average Forward P/E of 11.06.
We can also see that WBA currently has a PEG ratio of 1.62. 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 1.64 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 128, which puts it in the top 50% of all 250+ industries.
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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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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 $54.71, moving +1.05% from the previous trading session. This move lagged the S&P 500's daily gain of 1.49%.
Prior to today's trading, shares of the largest U.S. drugstore chain had gained 0.78% over the past month. This has outpaced the Retail-Wholesale sector's loss of 5.6% and the S&P 500's loss of 0.62% in that time.
Investors will be hoping for strength from WBA as it approaches its next earnings release. The company is expected to report EPS of $1.15, up 38.55% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $33.65 billion, down 2.82% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.89 per share and revenue of $133.38 billion, which would represent changes of +3.16% and -4.41%, respectively, from the prior year.
Any recent changes to analyst estimates for WBA should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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.
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. The Zacks Consensus EPS estimate has moved 1.84% lower within the past month. WBA is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, WBA is holding a Forward P/E ratio of 11.08. This valuation marks a premium compared to its industry's average Forward P/E of 11.06.
We can also see that WBA currently has a PEG ratio of 1.62. 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 1.64 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 128, which puts it in the top 50% of all 250+ industries.
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.
You can find more information on all of these metrics, and much more, on Zacks.com.