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

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In the latest trading session, Walgreens Boots Alliance (WBA - Free Report) closed at $46.72, marking a +1.24% move from the previous day. This move outpaced the S&P 500's daily loss of 0.53%. At the same time, the Dow lost 0.29%, and the tech-heavy Nasdaq lost 0.1%.

Coming into today, shares of the largest U.S. drugstore chain had lost 8.45% in the past month. In that same time, the Retail-Wholesale sector lost 3.16%, while the S&P 500 lost 4.24%.

Investors will be hoping for strength from Walgreens Boots Alliance as it approaches its next earnings release. On that day, Walgreens Boots Alliance is projected to report earnings of $1.38 per share, which would represent a year-over-year decline of 1.43%. Meanwhile, our latest consensus estimate is calling for revenue of $33.65 billion, up 2.67% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $5.04 per share and revenue of $132.41 billion, which would represent changes of -5.08% and -3.62%, respectively, from the prior year.

Any recent changes to analyst estimates for Walgreens Boots Alliance should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 0.4% lower within the past month. Walgreens Boots Alliance currently has a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Walgreens Boots Alliance has a Forward P/E ratio of 9.15 right now. This valuation marks a discount compared to its industry's average Forward P/E of 10.9.

It is also worth noting that WBA currently has a PEG ratio of 2.04. 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. Retail - Pharmacies and Drug Stores stocks are, on average, holding a PEG ratio of 1.8 based on yesterday's closing prices.

The Retail - Pharmacies and Drug Stores industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 187, which puts it in the bottom 27% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

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


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