The most recent trading session ended with Walgreens Boots Alliance (WBA – Free Report) standing at $10.12, reflecting a +0.7% shift from the previouse trading day’s closing. This move outpaced the S&P 500’s daily loss of 0.95%. At the same time, the Dow lost 0.99%, and the tech-heavy Nasdaq lost 1.36%.
The largest U.S. drugstore chain’s stock has climbed by 9% in the past month, exceeding the Retail-Wholesale sector’s gain of 7.69% and the S&P 500’s gain of 1.86%.
The investment community will be paying close attention to the earnings performance of Walgreens Boots Alliance in its upcoming release. The company is forecasted to report an EPS of $0.53, showcasing a 55.83% downward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $38.07 billion, up 2.75% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.60 per share and a revenue of $151.57 billion, signifying shifts of -44.44% and +2.65%, respectively, from the last year.
Investors should also take note of any recent adjustments to analyst estimates for Walgreens Boots Alliance. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts’ confidence in the company’s business performance and profit potential.
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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there’s been a 5.59% rise in the Zacks Consensus EPS estimate. Walgreens Boots Alliance is currently a Zacks Rank #3 (Hold).
Investors should also note Walgreens Boots Alliance’s current valuation metrics, including its Forward P/E ratio of 6.28. For comparison, its industry has an average Forward P/E of 4.72, which means Walgreens Boots Alliance is trading at a premium to the group.
Investors should also note that WBA has a PEG ratio of 1.26 right now. 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. WBA’s industry had an average PEG ratio of 0.72 as of yesterday’s close.
The Retail – Pharmacies and Drug Stores industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 87, positioning it in the top 35% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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.
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