Walgreens Boots Alliance (WBA) Stock Dips While Market Gains: Key Facts

Walgreens Boots Alliance (WBA) ended the recent trading session at $26.60, demonstrating a -0.15% swing from the preceding day's closing price. This move lagged the S&P 500's daily gain of 0.04%. At the same time, the Dow added 0.14%, and the tech-heavy Nasdaq lost 0.03%.

Prior to today's trading, shares of the largest U.S. drugstore chain had gained 33.33% over the past month. This has outpaced the Retail-Wholesale sector's gain of 6.63% and the S&P 500's gain of 5.28% in that time.

Investors will be eagerly watching for the performance of Walgreens Boots Alliance in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on January 4, 2024. On that day, Walgreens Boots Alliance is projected to report earnings of $0.66 per share, which would represent a year-over-year decline of 43.1%. In the meantime, our current consensus estimate forecasts the revenue to be $34.92 billion, indicating a 4.6% growth compared to the corresponding quarter of the prior year.

WBA's full-year Zacks Consensus Estimates are calling for earnings of $3.34 per share and revenue of $142.9 billion. These results would represent year-over-year changes of -16.08% and +2.75%, respectively.

Any recent changes to analyst estimates for Walgreens Boots Alliance should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there's been a 0.05% rise in the Zacks Consensus EPS estimate. Currently, Walgreens Boots Alliance is carrying a Zacks Rank of #4 (Sell).

Looking at its valuation, Walgreens Boots Alliance is holding a Forward P/E ratio of 7.98. Its industry sports an average Forward P/E of 7.98, so one might conclude that Walgreens Boots Alliance is trading at no noticeable deviation comparatively.

Investors should also note that WBA has a PEG ratio of 1.6 right now. 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. The Retail - Pharmacies and Drug Stores industry currently had an average PEG ratio of 1.89 as of yesterday's close.

The Retail - Pharmacies and Drug Stores industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 190, placing it within the bottom 25% of over 250 industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.

Zacks Naming Top 10 Stocks for 2024

Want to be tipped off early to our 10 top picks for the entirety of 2024?

History suggests their performance could be sensational.

From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2024. Don’t miss your chance to get in on these stocks when they’re released on January 2.

Be First to New Top 10 Stocks >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Walgreens Boots Alliance, Inc. (WBA) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

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

More Related Articles

Info icon

This data feed is not available at this time.

Sign up for Smart Investing to get the latest news, strategies and tips to help you invest smarter.