Walgreens Boots Alliance(WBA)

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Here's Why Walgreens Boots Alliance (WBA) Fell More Than Broader Market
ZACKS· 2024-12-12 23:50
Company Performance - Walgreens Boots Alliance (WBA) closed at $9.73, reflecting a -1.12% change from the previous session, which is less than the S&P 500's daily loss of 0.54% [1] - Over the last month, WBA's shares increased by 8.97%, outperforming the Retail-Wholesale sector's gain of 6.47% and the S&P 500's gain of 1.5% [1] Upcoming Earnings Report - The company is set to release its earnings report on January 9, 2025, with expected earnings of $0.39 per share, indicating a year-over-year decline of 40.91% [2] - The consensus estimate for revenue is $37.2 billion, representing a 1.35% increase compared to the same quarter of the previous year [2] Full Year Estimates - For the full year, the Zacks Consensus Estimates project earnings of $1.53 per share and revenue of $149.06 billion, showing changes of -46.88% and +0.95% respectively from the previous year [3] Analyst Estimates and Market Sentiment - Recent changes to analyst estimates for WBA reflect shifting business dynamics, with positive revisions indicating a favorable outlook on the company's health and profitability [4] - The Zacks Rank system, which assesses stock performance based on estimate changes, currently ranks WBA at 3 (Hold) [6] Valuation Metrics - WBA has a Forward P/E ratio of 6.45, which is in line with the industry average [7] - The PEG ratio for WBA is 1.29, compared to the industry average PEG ratio of 0.89, indicating a higher expected earnings growth trajectory [8] Industry Context - The Retail - Pharmacies and Drug Stores industry, to which WBA belongs, has a Zacks Industry Rank of 224, placing it in the bottom 11% of over 250 industries [8] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [9]
Why Walgreens Stock's Latest Rally Could Backfire
Schaeffers Investment Research· 2024-12-12 20:09
Walgreens Boots Alliance Inc (NASDAQ:WBA) stock has been in a world of hurt ever since losing its spot on the Dow Jones Industrial Average (DJI) this year. The equity has been trying to distance itself from its Nov. 21, record low of $8.08, but carries a hefty 62.2% year-to-date deficit. Plus, the stock's latest rally following reports the pharmacy company may get taken private sent WBA right into a trendline with historically bearish implications.According to a study from Schaeffer’s Senior Quantitative An ...
If Walgreens Sells To Private Equity, Deal May Join Others Under Fire
Forbes· 2024-12-12 05:00
If Walgreens Boots Alliance follows through with a sale to private equity, the company can expect to ... [+] join other healthcare deals under scrutiny for selling out to such investors. In this photo, Walgreens signage is seen at a store on Court Street on January 05, 2023 in the Brooklyn Heights neighborhood of the Brooklyn borough in New York City. (Photo by Michael M. Santiago/Getty Images)Getty ImagesIf Walgreens Boots Alliance follows through with a sale to private equity, the company might join other ...
Walgreens could 'aggressively' cut costs if privately owned, analyst says
Fox Business· 2024-12-11 13:51
Core Viewpoint - Walgreens Boots Alliance Inc. is in discussions to be acquired by private equity firm Sycamore Partners, which could provide the company with greater flexibility to implement aggressive cost-cutting measures to address ongoing industry challenges [1][2]. Company Summary - The potential acquisition by Sycamore Partners may allow Walgreens to make significant changes to its business model, particularly in response to declining pharmacy operating margins and increased competition from online retailers [2]. - Walgreens has been experiencing a substantial decline in its stock price, down approximately 60% year-to-date, leading to a "hold" opinion from analysts [3]. - The company is reportedly in talks to finalize a deal by early next year, while also exploring other potential buyers [4]. - Walgreens is currently undergoing operational revamps under new leadership due to profitability challenges and declining margins [5]. - In October, Walgreens announced plans to close at least 1,200 stores over the next three years as part of a strategy to eliminate underperforming locations in the U.S. [6]. - The retail pharmacy business remains central to Walgreens' strategy, but the company faces increased regulatory and reimbursement pressures that impact its operational costs [7]. Industry Summary - The pharmacy industry is facing significant challenges, with analysts predicting further closures as companies attempt to rightsize their operations [7]. - There are approximately 60,000 retail pharmacies in the U.S., but industry experts suggest that the optimal number may be closer to 35,000 to 40,000 [8].
What's Happening With Walgreens Stock?
Forbes· 2024-12-11 12:06
MILL VALLEY, CALIFORNIA - OCTOBER 15: A sign is posted on the exterior of a Walgreens store on ... [+] October 15, 2024 in Mill Valley, California. Walgreens announced plans to close 1,200 stores over the next three years. (Photo by Justin Sullivan/Getty Images)Getty ImagesWalgreens stock surged 18% on December 10 after reports emerged that it was being sold to a private equity investor. Walgreens is likely discussing a deal with New York-based Sycamore Partners that could close early next year. Sycamore sp ...
Is Walgreens' High-Yielding Dividend Safe?
The Motley Fool· 2024-11-22 09:10
If the dividend yield for a stock you are considering exceeds 10%, you should be taking a long, hard look at the business to determine whether that payout is safe. If it's safe, the odds are good other investors would be buying up such a deal (and reducing the yield as a result). A dividend that high generates significant income, which boosts overall returns offers a great buffer during challenging market conditions.Walgreens Boots Alliance (WBA 0.73%) slashed its dividend earlier this year. However, becaus ...
Walgreens: 11.9% Dividend Yield Still On Unsteady Legs
Seeking Alpha· 2024-11-18 12:32
As a dividend investor who plans to live solely off dividends in the next 5 - 7 years, I'm often more critical of a company's ability to pay its dividend. And although Walgreens Boots Alliance (Contributing analyst to the iREIT+Hoya Capital investment group. The Dividend Collectuh is not a registered investment professional nor financial advisor and these articles should not be taken as financial advice. This is for educational purposes only and I encourage everyone to do their own due diligence. I'm a Navy ...
Walgreens: Deep Value? Or Massive Value Trap?
Seeking Alpha· 2024-11-08 08:46
About a year ago, Altria ( MO ) was trading below $40 a share, giving them a starting dividend yield of around 9.5%. Since then, the company has a total return of close to 44%! The same wasI believe value dividend investing has proven to be one of the most effect forms of investing as it allows you to buy quality companies at great prices while receiving cash flow, without selling your position in a stock. I went to school for finance and have worked in finance my entire career, and am currently building a ...
Walgreens Is Closing 1,200 Stores and Investors Should Expect Even More Big Moves in the Future
The Motley Fool· 2024-11-07 13:30
The struggling pharmacy retailer still has a tough road ahead.Walgreens Boots Alliance (WBA -4.05%) is in the midst of a significant turnaround. New CEO Tim Wentworth is trying to improve the company's financials and make the stock a much more appealing option for long-term investors. It won't be easy amid rising costs and heightened competition.By becoming leaner and shedding unprofitable stores, Walgreens can hopefully make strides in getting back to breakeven and being in a better position to consistentl ...
Walgreens Q4: 2 Signs Of A Dividend Trap
Seeking Alpha· 2024-10-29 18:53
I last wrote on Walgreens Boots Alliance, Inc. (NASDAQ: WBA ) about two months ago. That article was entitled "Walgreens: Short Interest Surge Indicates It's Time To Cut Your Losses." The article concentrated on the following As you can tell, our core style is to provide actionable and unambiguous ideas from our independent research. If your share this investment style, check out Envision Early Retirement. It provides at least 1x in-depth articles per week on such ideas.We have helped our members not only t ...