Walgreens Boots Alliance (WBA - Free Report) closed the most recent trading day at $53.56, moving +0.11% from the previous trading session. This change outpaced the S&P 500's 0.3% loss on the day. Meanwhile, the Dow lost 0.54%, and the Nasdaq, a tech-heavy index, lost 0.41%.
Coming into today, shares of the largest U.S. drugstore chain had lost 1.85% in the past month. In that same time, the Retail-Wholesale sector lost 0.26%, while the S&P 500 lost 0.43%.
Investors will be hoping for strength from WBA as it approaches its next earnings release. The company is expected to report EPS of $1.43, down 6.54% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $34.54 billion, up 0.61% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.99 per share and revenue of $136.77 billion. These totals would mark changes of -0.5% and +3.98%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for WBA. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 remained stagnant within the past month. WBA is currently a Zacks Rank #4 (Sell).
Investors should also note WBA's current valuation metrics, including its Forward P/E ratio of 8.93. Its industry sports an average Forward P/E of 11.97, so we one might conclude that WBA is trading at a discount comparatively.
Meanwhile, WBA's PEG ratio is currently 1.09. 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 Retail - Pharmacies and Drug Stores was holding an average PEG ratio of 1.09 at yesterday's closing price.
The Retail - Pharmacies and Drug Stores industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 231, which puts it in the bottom 10% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.