The latest trading session saw Walgreens Boots Alliance (WBA) ending at $9.89, denoting a +1.33% adjustment from its last day's close. This change outpaced the S&P 500's 0.72% gain on the day. Elsewhere, the Dow gained 0.3%, while the tech-heavy Nasdaq added 1.35%.
Coming into today, shares of the largest U.S. drugstore chain had gained 3.06% in the past month. In that same time, the Retail-Wholesale sector gained 6.17%, while the S&P 500 gained 1.02%.
Market participants will be closely following the financial results of Walgreens Boots Alliance in its upcoming release. On that day, Walgreens Boots Alliance is projected to report earnings of $0.53 per share, which would represent a year-over-year decline of 55.83%. Alongside, our most recent consensus estimate is anticipating revenue of $38.07 billion, indicating a 2.75% upward movement from the same quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.60 per share and revenue of $151.57 billion, indicating changes of -44.44% and +2.65%, respectively, compared to the previous year.
Any recent changes to analyst estimates for Walgreens Boots Alliance should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
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 varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 5.59% higher. Right now, Walgreens Boots Alliance possesses a Zacks Rank of #3 (Hold).
Digging into valuation, Walgreens Boots Alliance currently has a Forward P/E ratio of 6.1. For comparison, its industry has an average Forward P/E of 6.1, which means Walgreens Boots Alliance is trading at no noticeable deviation to the group.
It is also worth noting that WBA currently has a PEG ratio of 1.22. 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. The Retail - Pharmacies and Drug Stores industry had an average PEG ratio of 0.62 as trading concluded yesterday.
The Retail - Pharmacies and Drug Stores industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 230, positioning it in the bottom 9% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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