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Walgreens Boots Alliance (WBA) Outpaces Stock Market Gains: What You Should Know

In the latest trading session, Walgreens Boots Alliance (WBA) closed at $82.44, marking a +0.77% move from the previous day. This move outpaced the S&P 500's daily gain of 0.54%. Elsewhere, the Dow gained 0.64%, while the tech-heavy Nasdaq added 0.95%.

Coming into today, shares of the largest U.S. drugstore chain had lost 0.13% in the past month. In that same time, the Retail-Wholesale sector lost 5%, while the S&P 500 lost 4.97%.

Investors will be hoping for strength from WBA as it approaches its next earnings release, which is expected to be January 3, 2019. The company is expected to report EPS of $1.43, up 11.72% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $33.61 billion, up 9.32% from the year-ago period.

WBA's full-year Zacks Consensus Estimates are calling for earnings of $6.54 per share and revenue of $137.49 billion. These results would represent year-over-year changes of +8.64% and +4.52%, respectively.

It is also important to note the recent changes to analyst estimates for WBA. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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.

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. Within the past 30 days, our consensus EPS projection has moved 0.13% lower. WBA currently has a Zacks Rank of #3 (Hold).

Digging into valuation, WBA currently has a Forward P/E ratio of 12.52. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 12.52.

Also, we should mention that WBA has a PEG ratio of 1.28. 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 1.15 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 109, which puts it in the top 42% 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.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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