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The most recent trading session ended with Walgreens Boots Alliance (WBA) standing at $9.70, reflecting a -0.51% shift from the previouse trading day's closing. This change lagged the S&P 500's daily loss of 0.01%. At the same time, the Dow lost 0.37%, and the tech-heavy Nasdaq gained 0.41%.
Shares of the largest U.S. drugstore chain have depreciated by 24.59% over the course of the past month, underperforming the Retail-Wholesale sector's gain of 9.64% and the S&P 500's gain of 4.88%.
The upcoming earnings release of Walgreens Boots Alliance will be of great interest to investors. The company is forecasted to report an EPS of $0.53, showcasing a 55.83% downward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $38.07 billion, up 2.75% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.60 per share and a revenue of $151.57 billion, representing changes of -44.44% and +2.65%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Walgreens Boots Alliance. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. Over the past month, there's been a 0.76% rise in the Zacks Consensus EPS estimate. Walgreens Boots Alliance is currently a Zacks Rank #3 (Hold).
In the context of valuation, Walgreens Boots Alliance is at present trading with a Forward P/E ratio of 6.09. This signifies a premium in comparison to the average Forward P/E of 4.58 for its industry.
It's also important to note that WBA currently trades at a PEG ratio of 1.22. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Retail - Pharmacies and Drug Stores industry was having an average PEG ratio of 0.7.
The Retail - Pharmacies and Drug Stores industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 89, putting it in the top 36% of all 250+ industries.