Back to top

Image: Bigstock

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

Read MoreHide Full Article

Walgreens Boots Alliance (WBA - Free Report) closed the most recent trading day at $51.17, moving -1.01% from the previous trading session. This change lagged the S&P 500's 0.69% loss on the day. Meanwhile, the Dow lost 0.87%, and the Nasdaq, a tech-heavy index, lost 0.79%.

Heading into today, shares of the largest U.S. drugstore chain had lost 3.51% over the past month, outpacing the Retail-Wholesale sector's loss of 6.9% and the S&P 500's loss of 4.53% in that time.

Wall Street will be looking for positivity from WBA as it approaches its next earnings report date. In that report, analysts expect WBA to post earnings of $1.43 per share. This would mark a year-over-year decline of 6.54%. Meanwhile, our latest consensus estimate is calling for revenue of $34.54 billion, up 0.61% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.99 per share and revenue of $136.77 billion. These totals would mark changes of -0.5% and +3.98%, respectively, from last year.

Investors might also notice 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.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. WBA currently has a Zacks Rank of #4 (Sell).

In terms of valuation, WBA is currently trading at a Forward P/E ratio of 8.63. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 8.63.

Investors should also note that WBA has a PEG ratio of 1.05 right now. 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. The Retail - Pharmacies and Drug Stores industry currently had an average PEG ratio of 1.04 as of yesterday's close.

The Retail - Pharmacies and Drug Stores industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 246, putting it in the bottom 4% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Walgreens Boots Alliance, Inc. (WBA) - free report >>

Published in