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The most recent trading session ended with Walgreens Boots Alliance (WBA) standing at $11.21, reflecting a -0.62% shift from the previouse trading day's closing. This move was narrower than the S&P 500's daily loss of 0.76%. At the same time, the Dow lost 1.14%, and the tech-heavy Nasdaq lost 0.18%.
Shares of the largest U.S. drugstore chain witnessed a gain of 13.14% over the previous month, beating the performance of the Retail-Wholesale sector with its loss of 10.64% and the S&P 500's loss of 7.29%.
Market participants will be closely following the financial results of Walgreens Boots Alliance in its upcoming release. The company's earnings per share (EPS) are projected to be $0.53, reflecting a 55.83% decrease from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $37.92 billion, indicating a 2.35% upward movement from the same quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.61 per share and revenue of $151.51 billion. These totals would mark changes of -44.1% and +2.61%, respectively, from last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Walgreens Boots Alliance. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate has moved 0.53% higher within the past month. Walgreens Boots Alliance is currently sporting a Zacks Rank of #2 (Buy).
From a valuation perspective, Walgreens Boots Alliance is currently exchanging hands at a Forward P/E ratio of 7.01. For comparison, its industry has an average Forward P/E of 6.07, which means Walgreens Boots Alliance is trading at a premium to the group.
It is also worth noting that WBA currently has a PEG ratio of 1.4. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Retail - Pharmacies and Drug Stores stocks are, on average, holding a PEG ratio of 0.85 based on yesterday's closing prices.