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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 $47.43, moving +0.11% from the previous trading session. The stock lagged the S&P 500's daily gain of 1.13%. Elsewhere, the Dow gained 0.74%, while the tech-heavy Nasdaq added 0.87%.

Prior to today's trading, shares of the largest U.S. drugstore chain had gained 1.65% over the past month. This has outpaced the Retail-Wholesale sector's gain of 0.3% and lagged the S&P 500's gain of 2.65% in that time.

Walgreens Boots Alliance will be looking to display strength as it nears its next earnings release, which 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%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $33.65 billion, up 2.67% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.03 per share and revenue of $132.41 billion. These totals would mark changes of -5.27% and -3.62%, respectively, from last year.

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 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.33% lower. Walgreens Boots Alliance is currently sporting 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 9.43 right now. This valuation marks a discount compared to its industry's average Forward P/E of 11.21.

Investors should also note that WBA has a PEG ratio of 2.21 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Retail - Pharmacies and Drug Stores was holding an average PEG ratio of 1.91 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 196, which puts it in the bottom 23% 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.

Make sure to utilize to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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