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

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Walgreens Boots Alliance (WBA - Free Report) closed the most recent trading day at $51.77, moving -0.31% from the previous trading session. This change lagged the S&P 500's 0.51% gain on the day.

Prior to today's trading, shares of the largest U.S. drugstore chain had lost 5.29% over the past month. This has lagged the Retail-Wholesale sector's gain of 2.15% and the S&P 500's gain of 1.75% 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. On that day, WBA is projected to report earnings of $1.15 per share, which would represent year-over-year growth of 38.55%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $33.65 billion, down 2.82% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.89 per share and revenue of $133.38 billion. These totals would mark changes of +3.16% and -4.41%, respectively, from last year.

Any recent changes to analyst estimates for WBA should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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. Within the past 30 days, our consensus EPS projection remained stagnant. WBA is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, WBA is holding a Forward P/E ratio of 10.63. This represents a discount compared to its industry's average Forward P/E of 10.81.

Investors should also note that WBA has a PEG ratio of 1.55 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. The Retail - Pharmacies and Drug Stores was holding an average PEG ratio of 1.6 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 133, putting it in the bottom 48% 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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