Company Performance - Walgreens Boots Alliance (WBA) stock closed at $11.20, reflecting a -0.44% change compared to the previous day, underperforming the S&P 500 which gained 0.41% [1] - Over the past month, WBA shares appreciated by 2.46%, lagging behind the Retail-Wholesale sector's gain of 5.64% and the S&P 500's gain of 6.13% [1] Earnings Report Expectations - The upcoming earnings report for WBA is projected to show earnings of $0.34 per share, indicating a year-over-year decline of 46.03% [2] - Revenue is anticipated to be $36.66 billion, representing a 0.85% increase from the same quarter last year [2] Full Year Projections - For the full year, earnings are estimated at $1.66 per share, reflecting a -42.36% change from the previous year, while revenue is projected at $151.49 billion, showing a +2.59% change [3] Analyst Estimates and Stock Performance - Recent changes to analyst estimates for WBA suggest evolving short-term business trends, with positive revisions indicating optimism about the company's outlook [3] - The Zacks Rank system, which incorporates estimate changes, currently ranks WBA at 3 (Hold) [5] Valuation Metrics - WBA has a Forward P/E ratio of 6.77, which is a premium compared to its industry's Forward P/E of 5.43 [6] - The PEG ratio for WBA stands at 1.35, while the average PEG ratio for Retail - Pharmacies and Drug Stores stocks is 0.79 [7] Industry Context - The Retail - Pharmacies and Drug Stores industry is part of the Retail-Wholesale sector and holds a Zacks Industry Rank of 3, placing it in the top 2% of over 250 industries [8]

Core Viewpoint - Walgreens Boots Alliance Inc (WBA) has been experiencing stagnant stock performance, particularly following the announcement of a $10 billion deal to take the company private by Sycamore Partners, with the stock currently priced at $11.21 [1] Group 1: Stock Performance - WBA has been identified as the worst-performing stock in the S&P 500 Index for the month of June over the past decade, averaging a loss of 3.7% and finishing lower 80% of the time [2] - The average return for WBA in June is -3.69%, with a median return of -1.63%, and only 20% of the time has it posted a positive return [3] Group 2: Analyst Sentiment - Among the 15 analysts covering WBA, only two have a "buy" rating, while 11 maintain a "hold" rating, indicating potential for downgrades that could negatively impact the stock [4] - The current call/put volume ratio for WBA is 4.57, which is higher than 84% of readings from the past year, suggesting a high level of optimism in the options market [4] Group 3: Options Market - The Schaeffer's Volatility Index (SVI) for WBA is at 23%, ranking in the low 12th percentile of its annual range, indicating that options traders are expecting low volatility [5] - Historically, WBA has outperformed these low volatility expectations, as reflected in its Schaeffer's Volatility Scorecard (SVS) score of 81 out of 100 [5]

Core Viewpoint - The article discusses the uncertainty surrounding earnings forecasts for 2025 among S&P 500 companies due to fluctuating tariff policies and economic conditions, highlighting the number of companies that have provided or updated their earnings guidance during the Q1 earnings season [1]. Group 1: Earnings Forecasts - As of April 10, 2023, 23 S&P 500 companies reported their Q1 earnings, with 16 companies (70%) commenting on their earnings expectations for the current or next fiscal year [3]. - Among these 16 companies, 14 provided earnings forecasts for FY2025 (or FY2026), with 3 companies lowering their previous earnings guidance, 6 maintaining their forecasts, and 4 raising their expectations [3]. Group 2: Withdrawals and Uncertainties - Two companies, Walgreens Boots Alliance and Delta Air Lines, announced the withdrawal of their previously issued earnings guidance for FY2025, citing reasons related to upcoming merger transactions and economic uncertainties, respectively [4]. - Walgreens explained that the withdrawal was due to an impending acquisition by Sycamore Partners, while Delta stated that it would not reaffirm its earnings guidance until the economic situation becomes clearer [4]. - The market is closely monitoring whether more S&P 500 companies will withdraw their earnings guidance for 2025, recalling a similar trend during the COVID-19 pandemic [4].

Company Overview - Walgreens Boots Alliance, Inc. (WBA) has opened a new micro-fulfillment center (MFC) in Brooklyn Park, MN, aimed at streamlining prescription processing and enhancing personalized care for patients [1] - The MFC will support nearly 200 Walgreens stores across the Midwest, processing approximately 13 million prescriptions annually and creating over 175 jobs in the area [2] Operational Efficiency - Walgreens operates a network of 12 MFCs that support over 5,000 stores in the U.S., fulfilling more than 3.5 million prescriptions weekly, resulting in a 24% year-over-year increase in shipped volumes [3] - Approximately 40% of a store's total prescription volume is managed by MFCs, which also implemented a recycling program that recycled 3.7 million pounds of materials in fiscal 2024 [4] Industry Prospects - The retail pharmacy market is projected to reach $640 billion by 2033, growing at a compound annual growth rate of 3.5% from 2026 to 2033, driven by an aging population and increased demand for healthcare services [5] Financial Performance - Year-to-date, WBA's shares have increased by 19.8%, outperforming the industry's growth of 18.3% and the S&P 500's rise of 0.2% during the same period [6] Market Position - Walgreens currently holds a Zacks Rank of 3 (Hold), indicating a stable market position [7]

Core Insights - Walgreens is increasing its investment in robotics with a new micro-fulfillment center in Minnesota, which will support nearly 200 locations and process approximately 13 million prescriptions annually [1][4] - The micro-fulfillment centers allow pharmacists to focus more on patient care rather than prescription filling, enhancing community health and patient experience [2][5] - The company operates a network of 12 micro-fulfillment centers that fulfill over 3.5 million prescriptions weekly, supporting more than 5,000 stores nationwide [3][4] Operational Efficiency - The micro-fulfillment centers have resulted in a 24% year-over-year increase in shipped volumes, with around 16 million prescriptions filled monthly [4][5] - In October 2023, these centers supported 4,300 locations, increasing to 4,800 by February 2024, handling 40% of the prescription volume at supported pharmacies [4][5] Industry Context - Other major retailers like Walmart and Amazon are also investing in robotics for fulfillment, with Amazon introducing a robot capable of sensing touch and Walmart utilizing robotic 3D printing technology for warehouse construction [6][7]

Core Insights - CVS Health is interested in acquiring the prescription files of Rite Aid customers as part of Rite Aid's strategic sale process following its Chapter 11 bankruptcy filing [1][6] - Rite Aid is selling pharmacy assets from over 1,000 stores to various operators, including CVS, Walgreens, and grocery chains [1][3] - This marks Rite Aid's second bankruptcy filing in less than two years, with the company previously emerging from bankruptcy less than seven months ago [6][7] Group 1: CVS Health's Acquisition Plans - CVS Health confirmed its intention to purchase prescription files and related pharmacy assets from Rite Aid's stores in the Pacific Northwestern U.S. [1] - The acquisition is part of a broader strategy to avoid taking on additional debt associated with physical store operations [3] Group 2: Rite Aid's Bankruptcy and Sale Process - Rite Aid has initiated a strategic sale process for substantially all of its assets, leading to voluntary Chapter 11 proceedings in New Jersey [6] - The company aims to ensure a smooth transition for customers and preserve jobs during the sale process [3] - Rite Aid's current operational status includes 1,240 stores, primarily located in California, Pennsylvania, and New York [7] Group 3: Industry Context - The acquisition of prescription files during bankruptcy proceedings is a common practice among pharmacy chains and retailers [3][4] - Previous instances include Walgreens and CVS acquiring assets from Shopko during its financial restructuring in 2019 [4][5]

Company Performance - Walgreens Boots Alliance (WBA) closed at $11.18, with a daily gain of +0.45%, outperforming the S&P 500's gain of 0.41% [1] - The stock has increased by 3.06% over the past month, but this is below the Retail-Wholesale sector's gain of 9.47% and the S&P 500's gain of 9% [1] Upcoming Earnings - The upcoming earnings release is expected to show an EPS of $0.34, reflecting a 46.03% decline compared to the same quarter last year [2] - Revenue is anticipated to be $36.66 billion, indicating a 0.85% increase from the same quarter last year [2] Fiscal Year Projections - For the entire fiscal year, earnings are projected at $1.66 per share, representing a -42.36% change from the prior year [3] - Revenue for the fiscal year is estimated at $151.49 billion, showing a +2.59% change from the previous year [3] Analyst Estimates - Recent changes to analyst estimates indicate positive short-term business trends, which are generally viewed as favorable for the company's outlook [4] - The Zacks Rank system, which incorporates estimate changes, suggests actionable ratings based on these revisions [5] Zacks Rank and Valuation - Walgreens Boots Alliance currently holds a Zacks Rank of 3 (Hold), with a 0.88% rise in the Zacks Consensus EPS estimate over the past month [6] - The company has a Forward P/E ratio of 6.7, which is a premium compared to the industry average of 5.11 [7] PEG Ratio - The PEG ratio for Walgreens Boots Alliance is 1.34, compared to the industry average PEG ratio of 0.77 [8] - The Retail - Pharmacies and Drug Stores industry is ranked in the top 1% of all industries according to the Zacks Industry Rank [8][9]

Core Insights - Walgreens is focusing on automation to enhance efficiency and improve patient interaction as it navigates challenges in the drugstore industry [1][2][5] Group 1: Automation and Micro-Fulfillment Centers - Walgreens is expanding its micro-fulfillment centers, which utilize robots to fill prescriptions, aiming to serve over 5,000 stores by year-end, up from 4,800 in February 2023 [4] - The micro-fulfillment centers currently handle an average of 40% of prescription volume at supported pharmacies, equating to approximately 16 million prescriptions filled monthly [4][7] - The investment in robotic pharmacy fills has generated around $500 million in savings by reducing excess inventory and increasing efficiency [7] Group 2: Operational Changes and Market Position - The company is transitioning from opening new stores to closing underperforming locations to improve profitability amid competition from CVS Health, Amazon, and others [5][6] - Walgreens aims to alleviate the workload of pharmacy staff, allowing them to focus more on clinical services like vaccinations and testing [2][8] - The automation strategy provides Walgreens with a competitive edge over independent pharmacies and some rivals that lack centralized support [9] Group 3: Industry Context and Challenges - The drugstore industry is facing challenges such as declining pharmacy reimbursement rates, reduced consumer spending, and increased competition from online retailers [5][6] - The shift towards automation is partly a response to staff burnout and chronic understaffing issues highlighted by nationwide walkouts in 2023 [6] - While micro-fulfillment centers offer cost savings and efficiency, they also come with risks related to reliance on advanced robotics [10]

Group 1 - Walgreens Boots Alliance (WBA) closed at $11.16, with a +0.95% change from the previous day, outperforming the S&P 500's gain of 0.58% [1] - The stock has increased by 2.5% over the past month, which is below the Retail-Wholesale sector's gain of 10.56% and the S&P 500's gain of 11.33% [1] Group 2 - Analysts expect Walgreens Boots Alliance to report earnings of $0.34 per share, reflecting a year-over-year decline of 46.03%, with projected revenue of $36.66 billion, a 0.85% increase from the same quarter last year [2] - For the full year, earnings are expected to be $1.66 per share and revenue at $151.49 billion, indicating changes of -42.36% and +2.59% respectively from the previous year [3] Group 3 - Recent revisions to analyst forecasts for Walgreens Boots Alliance are important as they reflect near-term business trends, with positive revisions indicating analyst optimism about the company's profitability [4] - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), has shown that 1 stocks have returned an average annual gain of +25% since 1988, with Walgreens Boots Alliance currently holding a Zacks Rank of 3 (Hold) [6] Group 4 - Walgreens Boots Alliance is trading at a Forward P/E ratio of 6.65, which is a premium compared to the industry's average Forward P/E of 5.11, and has a PEG ratio of 1.33, compared to the industry average of 0.77 [7] Group 5 - The Retail - Pharmacies and Drug Stores industry, part of the Retail-Wholesale sector, has a Zacks Industry Rank of 4, placing it in the top 2% of over 250 industries, with the top 50% rated industries outperforming the bottom half by a factor of 2 to 1 [8]

Core Viewpoint - Walgreens Boots Alliance (WBA) shares have increased by approximately 2.5% since the last earnings report, which is underperforming compared to the S&P 500 [1] Group 1: Earnings Report Insights - The consensus estimate for Walgreens has shifted by 7.08% over the past month, indicating a flatlining of estimates revisions [2] Group 2: VGM Scores - Walgreens has a poor Growth Score of F, while its Momentum Score is rated B, and it has a Value Score of B, placing it in the top 40% for this investment strategy [3] - The overall aggregate VGM Score for Walgreens is D, which is relevant for investors not focused on a single strategy [3] Group 3: Outlook - Walgreens holds a Zacks Rank of 3 (Hold), suggesting an expectation of an in-line return from the stock in the upcoming months [4]