In the latest trading session, Walgreens Boots Alliance (WBA - Free Report) closed at $79.76, marking a -0.04% move from the previous day. This move lagged the S&P 500's daily gain of 0.3%. At the same time, the Dow 0%, and the tech-heavy Nasdaq gained 0.92%.
Coming into today, shares of the largest U.S. drugstore chain had gained 7.49% in the past month. In that same time, the Retail-Wholesale sector lost 3.96%, while the S&P 500 lost 4.06%.
Investors will be hoping for strength from WBA as it approaches 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, our latest consensus estimate is calling for revenue of $33.64 billion, up 9.44% from the prior-year quarter.
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.
Any recent changes to analyst estimates for WBA should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Within the past 30 days, our consensus EPS projection has moved 0.29% higher. WBA is currently a Zacks Rank #2 (Buy).
Valuation is also important, so investors should note that WBA has a Forward P/E ratio of 12.19 right now. Its industry sports an average Forward P/E of 12.19, so we one might conclude that WBA is trading at a no noticeable deviation comparatively.
Investors should also note that WBA has a PEG ratio of 1.27 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 1.09 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 10, 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.