Walgreens Boots Alliance (WBA) closed at $54.45 in the latest trading session, marking a -0.2% move from the prior day. This move lagged the S&P 500's daily gain of 0.19%. At the same time, the Dow lost 0.11%, and the tech-heavy Nasdaq gained 0.81%.
Prior to today's trading, shares of the largest U.S. drugstore chain had gained 0.37% over the past month. This has outpaced the Retail-Wholesale sector's loss of 0.29% and lagged the S&P 500's gain of 0.56% in that time.
WBA will be looking to display strength as it nears its next earnings release, which is expected to be October 28, 2019. In that report, analysts expect WBA to post earnings of $1.41 per share. This would mark a year-over-year decline of 4.73%. Our most recent consensus estimate is calling for quarterly revenue of $33.90 billion, up 1.38% from the year-ago period.
Investors might also notice recent changes to analyst estimates for WBA. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 1% lower within the past month. WBA currently has a Zacks Rank of #4 (Sell).
Digging into valuation, WBA currently has a Forward P/E ratio of 9.21. For comparison, its industry has an average Forward P/E of 9.4, which means WBA is trading at a discount to the group.
Also, we should mention that WBA has a PEG ratio of 1.4. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Retail - Pharmacies and Drug Stores was holding an average PEG ratio of 1.4 at yesterday's closing price.
The Retail - Pharmacies and Drug Stores industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 98, putting it in the top 39% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
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