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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 $79.90, moving +0.16% from the previous trading session. This move lagged the S&P 500's daily gain of 0.65%. Elsewhere, the Dow gained 0.79%, while the tech-heavy Nasdaq added 1.01%.
Coming into today, shares of the largest U.S. drugstore chain had gained 8.09% in the past month. In that same time, the Retail-Wholesale sector lost 12.48%, while the S&P 500 lost 6.82%.
WBA will be looking to display strength as it nears its next earnings release, which is expected to be January 3, 2019. On that day, WBA is projected to report earnings of $1.43 per share, which would represent year-over-year growth of 11.72%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $33.64 billion, up 9.44% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.54 per share and revenue of $137.65 billion. These totals would mark changes of +8.64% and +4.65%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for WBA. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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.
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. Within the past 30 days, our consensus EPS projection has moved 1.55% higher. WBA is currently a Zacks Rank #2 (Buy).
Digging into valuation, WBA currently has a Forward P/E ratio of 12.19. This represents a no noticeable deviation compared to its industry's average Forward P/E of 12.19.
Meanwhile, WBA's PEG ratio is currently 1.24. 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 1.07 based on yesterday's closing prices.
The Retail - Pharmacies and Drug Stores industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 11, putting it in the top 4% 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.
To follow WBA in the coming trading sessions, be sure to utilize Zacks.com.
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Walgreens Boots Alliance (WBA) Gains But Lags Market: What You Should Know
Walgreens Boots Alliance (WBA - Free Report) closed the most recent trading day at $79.90, moving +0.16% from the previous trading session. This move lagged the S&P 500's daily gain of 0.65%. Elsewhere, the Dow gained 0.79%, while the tech-heavy Nasdaq added 1.01%.
Coming into today, shares of the largest U.S. drugstore chain had gained 8.09% in the past month. In that same time, the Retail-Wholesale sector lost 12.48%, while the S&P 500 lost 6.82%.
WBA will be looking to display strength as it nears its next earnings release, which is expected to be January 3, 2019. On that day, WBA is projected to report earnings of $1.43 per share, which would represent year-over-year growth of 11.72%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $33.64 billion, up 9.44% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.54 per share and revenue of $137.65 billion. These totals would mark changes of +8.64% and +4.65%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for WBA. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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.
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. Within the past 30 days, our consensus EPS projection has moved 1.55% higher. WBA is currently a Zacks Rank #2 (Buy).
Digging into valuation, WBA currently has a Forward P/E ratio of 12.19. This represents a no noticeable deviation compared to its industry's average Forward P/E of 12.19.
Meanwhile, WBA's PEG ratio is currently 1.24. 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 1.07 based on yesterday's closing prices.
The Retail - Pharmacies and Drug Stores industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 11, putting it in the top 4% 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.
To follow WBA in the coming trading sessions, be sure to utilize Zacks.com.