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

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In the latest trading session, Walgreens Boots Alliance (WBA - Free Report) closed at $53.43, marking a -1.06% move from the previous day. This change lagged the S&P 500's 0.18% loss on the day.

Prior to today's trading, shares of the largest U.S. drugstore chain had lost 0.44% over the past month. This has was narrower than the Retail-Wholesale sector's loss of 2.01% and lagged the S&P 500's gain of 0.04% in that time.

Investors will be hoping for strength from WBA as it approaches its next earnings release, which is expected to be July 1, 2021. The company is expected to report EPS of $1.15, up 38.55% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $33.65 billion, down 2.82% from the prior-year quarter.

WBA's full-year Zacks Consensus Estimates are calling for earnings of $4.89 per share and revenue of $133.38 billion. These results would represent year-over-year changes of +3.16% and -4.41%, respectively.

It is also important to note the recent changes to analyst estimates for WBA. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. The Zacks Consensus EPS estimate remained stagnant 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 11.05. This valuation marks a discount compared to its industry's average Forward P/E of 11.19.

Investors should also note that WBA has a PEG ratio of 1.62 right now. 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 1.65 based on yesterday's closing prices.

The Retail - Pharmacies and Drug Stores industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 92, putting it in the top 37% 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.

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


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