Walgreens Boots Alliance (WBA) Wins But Lags Market: What You Need To Know

Walgreens Boots Alliance (WBA) closed at $ 50.48 in the last trading session, marking a movement of + 0.14% from the previous day. This change was smaller than the S&P 500’s 0.62% gain on the day. Elsewhere, the Dow Jones gained 0.55%, while the tech-rich Nasdaq lost 0.03%.

Prior to today’s session, shares of America’s largest drugstore chain had gained 8.28% over the past month. This exceeded the 4.49% loss of the retail and wholesale sector and the 0.87% gain of the S&P 500 during this period.

Wall Street will research the positivity of the Walgreens Boots Alliance as the date of its next earnings report approaches. That is expected to be January 6, 2022. On that day, the Walgreens Boots Alliance is expected to report earnings of $ 1.22 per share, which would not represent any growth from the previous year’s quarter. Our most recent consensus estimate projects quarterly revenue of $ 32.93 billion, down 9.31% from the previous year.

For the full year, our consensus estimates from Zacks suggest analysts expect earnings of $ 4.91 per share and revenue of $ 131.5 billion. These totals would mark changes of -7.53% and -4.28%, respectively, from a year ago.

It’s also important to note the recent changes to the Walgreens Boots Alliance analyst estimates. Recent revisions tend to reflect the latest short-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 short-term stock price dynamics. We have developed the Zacks Rank to capitalize on this phenomenon. Our system takes these rating changes into account and provides a clear and actionable scoring model.

Zacks’ ranking system ranges from # 1 (strong buy) to # 5 (strong sell). It has a remarkable track record of externally audited success, with the No.1 stocks generating an average annual return of + 25% since 1988. Over the past 30 days, our consensus projection on EPS has fallen by 0. 12%. Walgreens Boots Alliance currently holds a Zacks # 4 (sell) rank.

In view of its valuation, Walgreens Boots Alliance has a forward P / E ratio of 10.28. For comparison, its industry has an average futures P / E of 10.28, which means the Walgreens Boots Alliance is trading at a gap not noticeable to the group.

We can also see that WBA currently has a PEG ratio of 2.32. This metric is used similarly to the famous P / E ratio, but the PEG ratio also takes into account the expected growth rate of the stock’s earnings. Retail – Pharmacies and Pharmacies held an average PEG ratio of 2.1 at yesterday’s closing price.

The Retail trade – Pharmacies and pharmacies sector is part of the Retail-wholesale sector. This group has a Zacks Industry Rank of 115, which places it in the top 46% of 250+ industries.

The Zacks Industry Rankings include is ranked from best to worst in terms of the average Zacks rankings of individual companies in each of these industries. Our research shows that the top 50% of industries top the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock market metrics and more on Zacks.com.

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