In the latest trading session, Walgreens Boots Alliance (WBA) closed at $62.79, marking a -1.54% move from the previous day. This change lagged the S&P 500's daily loss of 0.29%. Meanwhile, the Dow lost 0.55%, and the Nasdaq, a tech-heavy index, added 0.07%.
Prior to today's trading, shares of the largest U.S. drugstore chain had lost 14.32% over the past month. This has lagged the Retail-Wholesale sector's gain of 2.23% and the S&P 500's gain of 2.14% in that time.
Wall Street will be looking for positivity from WBA as it approaches its nex t earnings report date. This is expected to be April 2, 2019. The company is expected to report EPS of $1.70, down 1.73% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $34.90 billion, up 5.7% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.42 per share and revenue of $137.27 billion. These totals would mark changes of +6.64% and +4.36%, respectively, from last year.
Any recent changes to analyst estimates for WBA should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.81% lower. WBA is currently a Zacks Rank #4 (Sell).
Looking at its valuation, WBA is holding a Forward P/E ratio of 9.93. For comparison, its industry has an average Forward P/E of 11.55, which means WBA is trading at a discount to the group.
It is also worth noting that WBA currently has a PEG ratio of 1.04. 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. WBA's industry had an average PEG ratio of 1.11 as of yesterday's close.
The Retail - Pharmacies and Drug Stores industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 218, which puts it in the bottom 15% 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.
To follow WBA in the coming trading sessions, be sure to utilize Zacks.com.
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