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Walgreens Boots Alliance (WBA) Stock Sinks As Market Gains: What You Should Know

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In the latest trading session, Walgreens Boots Alliance (WBA - Free Report) closed at $37.85, marking a -0.99% move from the previous day. This change lagged the S&P 500's daily gain of 0.4%. At the same time, the Dow added 0.15%, and the tech-heavy Nasdaq gained 0.87%.

Prior to today's trading, shares of the largest U.S. drugstore chain had gained 2.25% over the past month. This has outpaced the Retail-Wholesale sector's loss of 2.5% and lagged the S&P 500's gain of 2.62% in that time.

WBA will be looking to display strength as it nears its next earnings release. In that report, analysts expect WBA to post earnings of $1.07 per share. This would mark a year-over-year decline of 21.9%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $34.89 billion, up 1.59% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $4.93 per share and revenue of $142.79 billion, which would represent changes of +4.01% and +2.33%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for WBA. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.

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 0.17% lower within the past month. WBA is holding a Zacks Rank of #3 (Hold) right now.

Investors should also note WBA's current valuation metrics, including its Forward P/E ratio of 7.76. This valuation marks a discount compared to its industry's average Forward P/E of 8.94.

It is also worth noting that WBA currently has a PEG ratio of 1.55. 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 1.54 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 131, putting it in the bottom 49% 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.

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