Walgreens Boots Alliance (WBA) closed at $47.32 in the latest trading session, marking a +0.72% move from the prior day. This move outpaced the S&P 500’s daily loss of 0.46%. At the same time, the Dow lost 0.7%, and the tech-heavy Nasdaq lost 0.68%.
Heading into today, shares of the largest U.S. drugstore chain had lost 4.12% over the past month, lagging the Retail-Wholesale sector’s gain of 2.35% and the S&P 500’s gain of 4.05% in that time.
Wall Street will be looking for positivity from Walgreens Boots Alliance as it approaches its next earnings report date. In that report, analysts expect Walgreens Boots Alliance to post earnings of $1.22 per share. This would mark no growth from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $32.93 billion, down 9.31% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.92 per share and revenue of $131.38 billion, which would represent changes of -7.34% and -4.37%, respectively, from the prior year.
Investors should also note any 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, 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 has moved 1.16% lower within the past month. Walgreens Boots Alliance currently has a Zacks Rank of #4 (Sell).
Digging into valuation, Walgreens Boots Alliance currently has a Forward P/E ratio of 9.56. Its industry sports an average Forward P/E of 9.56, so we one might conclude that Walgreens Boots Alliance is trading at a no noticeable deviation comparatively.
It is also worth noting that WBA currently has a PEG ratio of 2.16. 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 1.95 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 191, putting it in the bottom 25% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.