The latest trading session saw Walgreens Boots Alliance (WBA) ending at $11.18, denoting a -0.73% adjustment from its last day's close. This move was narrower than the S&P 500's daily loss of 1.07%. Elsewhere, the Dow lost 0.62%, while the tech-heavy Nasdaq lost 1.71%.
The the stock of largest U.S. drugstore chain has risen by 16.08% in the past month, leading the Retail-Wholesale sector's loss of 10.64% and the S&P 500's loss of 7.03%.
Market participants will be closely following the financial results of Walgreens Boots Alliance in its upcoming release. In that report, analysts expect Walgreens Boots Alliance to post earnings of $0.53 per share. This would mark a year-over-year decline of 55.83%. Our most recent consensus estimate is calling for quarterly revenue of $37.92 billion, up 2.35% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $1.61 per share and a revenue of $151.51 billion, indicating changes of -44.1% and +2.61%, respectively, from the former year.
Investors might also notice recent changes to analyst estimates for Walgreens Boots Alliance. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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. Within the past 30 days, our consensus EPS projection has moved 0.53% higher. Walgreens Boots Alliance currently has a Zacks Rank of #2 (Buy).
From a valuation perspective, Walgreens Boots Alliance is currently exchanging hands at a Forward P/E ratio of 7. This valuation marks a premium compared to its industry's average Forward P/E of 5.93.
Also, we should mention that WBA has a PEG ratio of 1.4. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Retail - Pharmacies and Drug Stores industry had an average PEG ratio of 0.84 as trading concluded yesterday.
The Retail - Pharmacies and Drug Stores industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 3, putting it in the top 2% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow WBA in the coming trading sessions, be sure to utilize Zacks.com.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
