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Walgreens Boots Alliance (WBA) Stock Drops Despite Market Gains: Important Facts to Note
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In the latest trading session, Walgreens Boots Alliance (WBA - Free Report) closed at $8.53, marking a -0.35% move from the previous day. The stock trailed the S&P 500, which registered a daily gain of 0.25%. Elsewhere, the Dow gained 0.2%, while the tech-heavy Nasdaq added 0.56%.
The largest U.S. drugstore chain's shares have seen a decrease of 17.53% over the last month, not keeping up with the Retail-Wholesale sector's gain of 5.28% and the S&P 500's gain of 1.65%.
The investment community will be closely monitoring the performance of Walgreens Boots Alliance in its forthcoming earnings report. The company is scheduled to release its earnings on October 15, 2024. The company is predicted to post an EPS of $0.36, indicating a 46.27% decline compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $35.8 billion, indicating a 1.08% increase compared to the same quarter of the previous year.
It is also important to note the recent changes to analyst estimates for Walgreens Boots Alliance. Such recent modifications usually signify the changing landscape of 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 exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been a 15.25% fall in the Zacks Consensus EPS estimate. As of now, Walgreens Boots Alliance holds a Zacks Rank of #4 (Sell).
In the context of valuation, Walgreens Boots Alliance is at present trading with a Forward P/E ratio of 4.85. This represents a discount compared to its industry's average Forward P/E of 5.63.
Meanwhile, WBA's PEG ratio is currently 0.97. 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. The Retail - Pharmacies and Drug Stores industry currently had an average PEG ratio of 0.89 as of yesterday's close.
The Retail - Pharmacies and Drug Stores industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 251, putting it in the bottom 1% 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) Stock Drops Despite Market Gains: Important Facts to Note
In the latest trading session, Walgreens Boots Alliance (WBA - Free Report) closed at $8.53, marking a -0.35% move from the previous day. The stock trailed the S&P 500, which registered a daily gain of 0.25%. Elsewhere, the Dow gained 0.2%, while the tech-heavy Nasdaq added 0.56%.
The largest U.S. drugstore chain's shares have seen a decrease of 17.53% over the last month, not keeping up with the Retail-Wholesale sector's gain of 5.28% and the S&P 500's gain of 1.65%.
The investment community will be closely monitoring the performance of Walgreens Boots Alliance in its forthcoming earnings report. The company is scheduled to release its earnings on October 15, 2024. The company is predicted to post an EPS of $0.36, indicating a 46.27% decline compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $35.8 billion, indicating a 1.08% increase compared to the same quarter of the previous year.
It is also important to note the recent changes to analyst estimates for Walgreens Boots Alliance. Such recent modifications usually signify the changing landscape of 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 exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been a 15.25% fall in the Zacks Consensus EPS estimate. As of now, Walgreens Boots Alliance holds a Zacks Rank of #4 (Sell).
In the context of valuation, Walgreens Boots Alliance is at present trading with a Forward P/E ratio of 4.85. This represents a discount compared to its industry's average Forward P/E of 5.63.
Meanwhile, WBA's PEG ratio is currently 0.97. 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. The Retail - Pharmacies and Drug Stores industry currently had an average PEG ratio of 0.89 as of yesterday's close.
The Retail - Pharmacies and Drug Stores industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 251, putting it in the bottom 1% 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.