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Walgreens Boots Alliance (WBA) Stock Moves -0.27%: What You Should Know

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Walgreens Boots Alliance (WBA - Free Report) closed the most recent trading day at $22.42, moving -0.27% from the previous trading session. This change was narrower than the S&P 500's daily loss of 1.22%. At the same time, the Dow lost 0.83%, and the tech-heavy Nasdaq lost 1.56%.

Coming into today, shares of the largest U.S. drugstore chain had lost 17.23% in the past month. In that same time, the Retail-Wholesale sector gained 0.22%, while the S&P 500 gained 0.54%.

Investors will be hoping for strength from Walgreens Boots Alliance as it approaches its next earnings release, which is expected to be October 12, 2023. On that day, Walgreens Boots Alliance is projected to report earnings of $0.69 per share, which would represent a year-over-year decline of 13.75%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $34.61 billion, up 6.67% from the year-ago period.

Any recent changes to analyst estimates for Walgreens Boots Alliance should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-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. 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.

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 0.41% lower. Walgreens Boots Alliance is currently a Zacks Rank #4 (Sell).

Valuation is also important, so investors should note that Walgreens Boots Alliance has a Forward P/E ratio of 5.85 right now. This valuation marks a discount compared to its industry's average Forward P/E of 6.54.

Meanwhile, WBA's PEG ratio is currently 1.17. 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 was holding an average PEG ratio of 1.25 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 196, putting it in the bottom 23% 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.

To follow WBA in the coming trading sessions, be sure to utilize Zacks.com.


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