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Walgreens Boots Alliance (WBA) Outpaces Stock Market Gains: What You Should Know
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Walgreens Boots Alliance (WBA - Free Report) closed the most recent trading day at $32.17, moving +1.97% from the previous trading session. This move outpaced the S&P 500's daily gain of 1.85%. At the same time, the Dow added 1.65%, and the tech-heavy Nasdaq gained 13.7%.
Coming into today, shares of the largest U.S. drugstore chain had lost 11.82% in the past month. In that same time, the Retail-Wholesale sector lost 1.1%, while the S&P 500 lost 0.87%.
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 $1.10 per share, which would represent year-over-year growth of 14.58%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $33.84 billion, up 3.83% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.50 per share and revenue of $136.18 billion, which would represent changes of -10.71% and +2.62%, respectively, from the prior year.
It is also important to note the 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. 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.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.06% higher within the past month. Walgreens Boots Alliance is currently a Zacks Rank #3 (Hold).
In terms of valuation, Walgreens Boots Alliance is currently trading at a Forward P/E ratio of 7.02. This represents a no noticeable deviation compared to its industry's average Forward P/E of 7.02.
Investors should also note that WBA has a PEG ratio of 2.32 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. WBA's industry had an average PEG ratio of 1.7 as of yesterday's close.
The Retail - Pharmacies and Drug Stores industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 235, which puts it in the bottom 7% 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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Walgreens Boots Alliance (WBA) Outpaces Stock Market Gains: What You Should Know
Walgreens Boots Alliance (WBA - Free Report) closed the most recent trading day at $32.17, moving +1.97% from the previous trading session. This move outpaced the S&P 500's daily gain of 1.85%. At the same time, the Dow added 1.65%, and the tech-heavy Nasdaq gained 13.7%.
Coming into today, shares of the largest U.S. drugstore chain had lost 11.82% in the past month. In that same time, the Retail-Wholesale sector lost 1.1%, while the S&P 500 lost 0.87%.
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 $1.10 per share, which would represent year-over-year growth of 14.58%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $33.84 billion, up 3.83% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.50 per share and revenue of $136.18 billion, which would represent changes of -10.71% and +2.62%, respectively, from the prior year.
It is also important to note the 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. 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.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.06% higher within the past month. Walgreens Boots Alliance is currently a Zacks Rank #3 (Hold).
In terms of valuation, Walgreens Boots Alliance is currently trading at a Forward P/E ratio of 7.02. This represents a no noticeable deviation compared to its industry's average Forward P/E of 7.02.
Investors should also note that WBA has a PEG ratio of 2.32 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. WBA's industry had an average PEG ratio of 1.7 as of yesterday's close.
The Retail - Pharmacies and Drug Stores industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 235, which puts it in the bottom 7% 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.