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Why the Market Dipped But Walgreens Boots Alliance (WBA) Gained Today

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In the latest trading session, Walgreens Boots Alliance (WBA - Free Report) closed at $15.97, marking a +0.63% move from the previous day. This move outpaced the S&P 500's daily loss of 0.16%. At the same time, the Dow added 0.04%, and the tech-heavy Nasdaq lost 0.18%.

The largest U.S. drugstore chain's stock has dropped by 0.5% in the past month, falling short of the Retail-Wholesale sector's gain of 1% and the S&P 500's gain of 3.15%.

The upcoming earnings release of Walgreens Boots Alliance will be of great interest to investors. The company's earnings report is expected on June 27, 2024. In that report, analysts expect Walgreens Boots Alliance to post earnings of $0.68 per share. This would mark a year-over-year decline of 32%. Simultaneously, our latest consensus estimate expects the revenue to be $35.96 billion, showing a 1.55% escalation compared to the year-ago quarter.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $3.21 per share and a revenue of $145.92 billion, signifying shifts of -19.35% and +4.91%, respectively, from the last year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Walgreens Boots Alliance. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.41% lower. Walgreens Boots Alliance is currently sporting a Zacks Rank of #3 (Hold).

From a valuation perspective, Walgreens Boots Alliance is currently exchanging hands at a Forward P/E ratio of 4.94. Its industry sports an average Forward P/E of 7.69, so one might conclude that Walgreens Boots Alliance is trading at a discount comparatively.

Also, we should mention that WBA has a PEG ratio of 0.99. 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 average PEG ratio for the Retail - Pharmacies and Drug Stores industry stood at 0.79 at the close of the market yesterday.

The Retail - Pharmacies and Drug Stores industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 234, this industry ranks in the bottom 8% of all industries, numbering over 250.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.

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