Markets

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

Walgreens Boots Alliance (WBA) closed at $52.80 in the latest trading session, marking a -0.02% move from the prior day. This move lagged the S&P 500's daily gain of 0.97%. At the same time, the Dow added 1.35%, and the tech-heavy Nasdaq gained 1.39%.

Prior to today's trading, shares of the largest U.S. drugstore chain had gained 1.05% over the past month. This has lagged the Retail-Wholesale sector's gain of 1.48% and outpaced the S&P 500's gain of 0.64% in that time.

WBA will be looking to display strength as it nears its next earnings release, which is expected to be June 27, 2019. In that report, analysts expect WBA to post earnings of $1.43 per share. This would mark a year-over-year decline of 6.54%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $34.53 billion, up 0.58% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $5.99 per share and revenue of $136.74 billion, which would represent changes of -0.5% and +3.96%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for WBA. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.02% lower. WBA currently has a Zacks Rank of #3 (Hold).

Looking at its valuation, WBA is holding a Forward P/E ratio of 8.81. This represents a no noticeable deviation compared to its industry's average Forward P/E of 8.81.

Also, we should mention that WBA has a PEG ratio of 1.08. 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 1.09 based on yesterday's closing prices.

The Retail - Pharmacies and Drug Stores industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 219, 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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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.