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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 at $36.24 in the latest trading session, marking a +0.78% move from the prior day. This change lagged the S&P 500's 1.53% gain on the day. At the same time, the Dow added 1.19%, and the tech-heavy Nasdaq gained 0.14%.
Heading into today, shares of the largest U.S. drugstore chain had lost 10.26% over the past month, lagging the Retail-Wholesale sector's loss of 2.1% and the S&P 500's loss of 3.1% in that time.
Investors will be hoping for strength from Walgreens Boots Alliance as it approaches its next earnings release. The company is expected to report EPS of $0.78, down 33.33% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $32.49 billion, down 5.17% from the year-ago period.
Investors should also note any recent changes to analyst estimates for Walgreens Boots Alliance. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. Walgreens Boots Alliance is currently a Zacks Rank #3 (Hold).
Investors should also note Walgreens Boots Alliance's current valuation metrics, including its Forward P/E ratio of 7.76. Its industry sports an average Forward P/E of 7.76, so we one might conclude that Walgreens Boots Alliance is trading at a no noticeable deviation comparatively.
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. Retail - Pharmacies and Drug Stores stocks are, on average, holding a PEG ratio of 1.56 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 97, which puts it in the top 39% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Walgreens Boots Alliance (WBA) Gains But Lags Market: What You Should Know
Walgreens Boots Alliance (WBA - Free Report) closed at $36.24 in the latest trading session, marking a +0.78% move from the prior day. This change lagged the S&P 500's 1.53% gain on the day. At the same time, the Dow added 1.19%, and the tech-heavy Nasdaq gained 0.14%.
Heading into today, shares of the largest U.S. drugstore chain had lost 10.26% over the past month, lagging the Retail-Wholesale sector's loss of 2.1% and the S&P 500's loss of 3.1% in that time.
Investors will be hoping for strength from Walgreens Boots Alliance as it approaches its next earnings release. The company is expected to report EPS of $0.78, down 33.33% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $32.49 billion, down 5.17% from the year-ago period.
Investors should also note any recent changes to analyst estimates for Walgreens Boots Alliance. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. Walgreens Boots Alliance is currently a Zacks Rank #3 (Hold).
Investors should also note Walgreens Boots Alliance's current valuation metrics, including its Forward P/E ratio of 7.76. Its industry sports an average Forward P/E of 7.76, so we one might conclude that Walgreens Boots Alliance is trading at a no noticeable deviation comparatively.
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. Retail - Pharmacies and Drug Stores stocks are, on average, holding a PEG ratio of 1.56 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 97, which puts it in the top 39% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.