Walgreens Boots Alliance (WBA) Gains But Lags Market: What You Should Know
Walgreens Boots Alliance (WBA) closed at $50.48 in the latest trading session, marking a +0.14% move from the prior day.
Walgreens Boots Alliance (WBA) closed at $50.48 in the latest trading session, marking a +0.14% move from the prior day. This change lagged the S&P 500's 0.62% gain on the day. Elsewhere, the Dow gained 0.55%, while the tech-heavy Nasdaq lost 0.03%.
Prior to today's trading, shares of the largest U.S. drugstore chain had gained 8.28% over the past month. This has outpaced the Retail-Wholesale sector's loss of 4.49% and the S&P 500's gain of 0.87% in that time.
Wall Street will be looking for positivity from Walgreens Boots Alliance as it approaches its next earnings report date. This is expected to be January 6, 2022. On that day, Walgreens Boots Alliance is projected to report earnings of $1.22 per share, which would represent no growth from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $32.93 billion, down 9.31% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.91 per share and revenue of $131.5 billion. These totals would mark changes of -7.53% and -4.28%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Walgreens Boots Alliance. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.12% lower. Walgreens Boots Alliance is holding a Zacks Rank of #4 (Sell) right now.
Looking at its valuation, Walgreens Boots Alliance is holding a Forward P/E ratio of 10.28. For comparison, its industry has an average Forward P/E of 10.28, which means Walgreens Boots Alliance is trading at a no noticeable deviation to the group.
We can also see that WBA currently has a PEG ratio of 2.32. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Retail - Pharmacies and Drug Stores was holding an average PEG ratio of 2.1 at yesterday's closing price.
The Retail - Pharmacies and Drug Stores industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 115, putting it in the top 46% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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