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Walgreens Boots Alliance (WBA) Dips More Than Broader Markets: What You Should Know

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Walgreens Boots Alliance (WBA - Free Report) closed the most recent trading day at $51.29, moving -0.95% from the previous trading session. This change lagged the S&P 500's 0.03% loss on the day.

Coming into today, shares of the largest U.S. drugstore chain had gained 10.34% in the past month. In that same time, the Retail-Wholesale sector gained 1.29%, while the S&P 500 gained 3.59%.

Wall Street will be looking for positivity from WBA as it approaches its next earnings report date. On that day, WBA is projected to report earnings of $1.01 per share, which would represent a year-over-year decline of 0.98%. Meanwhile, our latest consensus estimate is calling for revenue of $33.18 billion, down 4.49% from the prior-year quarter.

Investors might also notice recent changes to analyst estimates for WBA. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.86% lower. WBA is currently a Zacks Rank #3 (Hold).

Looking at its valuation, WBA is holding a Forward P/E ratio of 10.16. For comparison, its industry has an average Forward P/E of 10.58, which means WBA is trading at a discount to the group.

Investors should also note that WBA has a PEG ratio of 1.48 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Retail - Pharmacies and Drug Stores was holding an average PEG ratio of 1.61 at yesterday's closing price.

The Retail - Pharmacies and Drug Stores industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 117, putting it in the top 47% 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.

To follow WBA in the coming trading sessions, be sure to utilize Zacks.com.


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