Until recently, many Walgreens Boots Alliance (WBA -2.62%) investors were desperately hungry for good news to boost the company's languishing stock price. On Dec. 10 they got some, in the form of a news report detailing a potential buyout deal. That gave the shares a bit of a bump, but overall, investors remain cautious.Should they be so guarded, or is this an opportunity to snap up an underappreciated stock at a serious discount?Going private with a private equity player?That Dec. 11 report was published b ...

One of my most controversial articles of the year was no doubt a contrarian long idea on shares of Walgreens Boots Alliance, Inc. (NASDAQ: WBA ). In September, I called out a key technical development amid dreadful sentiment on theFreelance Financial Writer | Investments | Markets | Personal Finance | RetirementI create written content used in various formats including articles, blogs, emails, and social media for financial advisors and investment firms in a cost-efficient way. My passion is putting a narra ...

Walgreens Boots Alliance (WBA 0.95%) stock looks to have finally received some much-needed bullishness from investors. The stock was jumping last week on rumors that a private equity firm may be buying the company. While Walgreens stock is still down more than 60% this year (as of the end of last week), it is showing signs of life of late.But before you jump in and decide to take a chance on this beaten-down stock, there are some things to consider.An acquisition is not a surefire guarantee of a huge gainAc ...

BLOOMINGTON, Minn. and ATLANTA, Dec. 18, 2024 /PRNewswire/ -- CaringBridge, a nonprofit health platform, and Walgreens, an integrated healthcare, pharmacy and retail leader, are proud to announce a two-day campaign when Walgreens will match donations on CaringBridge up to $50,000 on December 17 and 18. The campaign complements a year-round initiative on CaringBridge.TheGiftCardShop.com, an e-commerce website where consumers can purchase and send gift cards directly to caregivers. Since launching gift card o ...

Core Viewpoint - Walgreens Boots Alliance is facing significant challenges but is attempting a turnaround, with potential for earnings growth and an attractive dividend yield of 11% for investors [1][2]. Company Performance - Walgreens generated nearly $116 billion in revenue in 2024 but only achieved $2.1 billion in operating income, reflecting a slim margin of 1.5% [3]. - The company earned $2.88 per share in 2024, with guidance for a decline to $1.40 in 2025, but analysts project an average earnings growth of 5% annually over the next three to five years [4]. Strategic Changes - Management is actively reducing debt and costs by closing unprofitable stores, indicating a focus on improving the balance sheet [4]. - The company is shifting its business model to adapt to competition from e-commerce and mail-order services, which have pressured traditional pharmacies [4]. Valuation Metrics - Walgreens has a forward P/E ratio of approximately 6 and a PEG ratio of 1.1, suggesting that the stock is undervalued relative to expected earnings growth [5]. - The investment thesis is appealing, with potential annualized returns estimated at about 16% when considering both earnings growth and dividend yield [5]. Dividend Concerns - The current dividend of $1.00 per share represents 70% of the company's projected earnings for 2025, raising questions about its sustainability [7]. - Analysts have expressed concerns regarding the dividend during earnings calls, with management not committing to maintaining the current payout [7]. Industry Context - The traditional brick-and-mortar pharmacy model is seen as outdated, with competitors increasingly able to deliver directly to consumers [9]. - Walgreens' credit rating has been downgraded to speculative status, which may necessitate a dividend cut as the company seeks to stabilize its financials [9]. Potential Outcomes - There are reports that Walgreens is considering a sale to a private equity firm, which could require a premium over its current valuation, but substantial payoffs for shareholders are not anticipated [10]. - While Walgreens could be viewed as a deep value stock, the potential for significant upside appears limited, suggesting caution for investors [8].

With its shares falling more than 80% over the last three years alone, investors are likely eager for a major shakeup in the way that Walgreens Boots Alliance (WBA 6.78%) does business. If the rumors are to be believed, that shakeup could be coming very soon, and it would affect every shareholder.But does that make the stock worth buying? Let's look at what's possible here and figure it out.Why this potential big change could be for the betterBefore addressing the rumor in question, it's worth taking a minu ...

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]

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 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 ...

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].