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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 $48.17, moving +0.54% from the previous trading session. The stock lagged the S&P 500's daily gain of 2.14%. Meanwhile, the Dow gained 1.82%, and the Nasdaq, a tech-heavy index, lost 0.01%.

Heading into today, shares of the largest U.S. drugstore chain had gained 1.16% over the past month, outpacing the Retail-Wholesale sector's loss of 7.49% and the S&P 500's loss of 5.01% in that time.

Wall Street will be looking for positivity from Walgreens Boots Alliance as it approaches its next earnings report date. This is expected to be March 31, 2022. In that report, analysts expect Walgreens Boots Alliance to post earnings of $1.38 per share. This would mark a year-over-year decline of 1.43%. Our most recent consensus estimate is calling for quarterly revenue of $33.65 billion, up 2.67% from the year-ago period.

WBA's full-year Zacks Consensus Estimates are calling for earnings of $5.04 per share and revenue of $132.41 billion. These results would represent year-over-year changes of -5.08% and -3.62%, respectively.

Investors might also notice recent changes to analyst estimates for Walgreens Boots Alliance. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

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.

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. Within the past 30 days, our consensus EPS projection remained stagnant. Walgreens Boots Alliance is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, Walgreens Boots Alliance is holding a Forward P/E ratio of 9.5. This represents a discount compared to its industry's average Forward P/E of 11.07.

Meanwhile, WBA's PEG ratio is currently 2.12. 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 1.84 at yesterday's closing price.

The Retail - Pharmacies and Drug Stores industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 200, which puts it in the bottom 22% 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.

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


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