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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 $37.17, moving +1.12% from the previous trading session. The stock lagged the S&P 500's daily gain of 1.54%. Meanwhile, the Dow gained 1.59%, and the Nasdaq, a tech-heavy index, added 0.98%.

Prior to today's trading, shares of the largest U.S. drugstore chain had lost 10.19% over the past month. This has lagged the Retail-Wholesale sector's gain of 11.47% and the S&P 500's gain of 8% in that time.

Wall Street will be looking for positivity from WBA as it approaches its next earnings report date. The company is expected to report EPS of $0.96, down 32.87% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $34.44 billion, up 1.44% from the year-ago period.

Investors might also notice recent changes to analyst estimates for WBA. These revisions help to show the ever-changing nature of 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 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. The Zacks Consensus EPS estimate has moved 3.91% lower within the past month. WBA currently has a Zacks Rank of #4 (Sell).

Investors should also note WBA's current valuation metrics, including its Forward P/E ratio of 7.16. Its industry sports an average Forward P/E of 11.36, so we one might conclude that WBA is trading at a discount comparatively.

Meanwhile, WBA's PEG ratio is currently 1.43. 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 1.46 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 123, putting it in the top 49% 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.


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