Walgreens Boots Alliance (WBA) closed at $43.55 in the latest trading session, marking a +0.58% move from the prior day. The stock lagged the S&P 500’s daily gain of 0.82%. At the same time, the Dow added 1.05%, and the tech-heavy Nasdaq gained 0.59%.
Wall Street will be looking for positivity from WBA as it approaches its next earnings report date. The company is expected to report EPS of $1.19, down 19.05% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $34.23 billion, down 1.03% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.48 per share and revenue of $138.47 billion. These totals would mark changes of -8.51% and +1.17%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for WBA. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.86% lower. WBA is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note WBA’s current valuation metrics, including its Forward P/E ratio of 7.9. Its industry sports an average Forward P/E of 9.31, so we one might conclude that WBA is trading at a discount comparatively.
Also, we should mention that WBA has a PEG ratio of 2.01. 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. Retail – Pharmacies and Drug Stores stocks are, on average, holding a PEG ratio of 1.75 based on yesterday’s closing prices.
The Retail – Pharmacies and Drug Stores industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 155, putting it in the bottom 39% 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.
You can find more information on all of these metrics, and much more, on 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.