Can CBD Sales Help Walgreens Boots Alliance (WBA) Stock Recover?

 

Walgreens Boots Alliance (WBA) stock is slightly up Thursday after an announcement that the company will begin selling CBD products in up to 1,500 stores in 9 states. Cannabidiol, also known as CBD, is derived from the hemp plant, but does not contain the psychoactive components of cannabis. CBD is widely believed to hold medical properties, treating a wide variety of ailments that range from pain management to anxiety.

Walgreens will begin selling CBD creams, patches and sprays, joining fellow competitor CVS Health Corp (CVS), which began selling CBD products earlier in March. The 1,500 store locations that will begin selling CBD products are in Colorado, Illinois, Indiana, Kentucky, New Mexico, Oregon, South Carolina, Tennessee, and Vermont.

WBA stock is lower by -5.15% over the last 12 months, and the average rating from Wall Street analysts is a Hold. In addition to the average rating from Wall Street analysts, WBA stock has a mean target price of $73.53. This means analysts expect the stock to rise 17.54% over the next 12 months.

Walgreens Boots Alliance stock is trading at $62.56 as of 3:32 PM on Thursday, Mar 28, a rise of $0.33, or 0.52% from the previous closing price of $62.23. Volume today is light. So far 3,985,983 shares have traded compared to average volume of 6,553,658 shares. The stock has traded between $62.29 and $63.45 so far today.

Stock Score Report, InvestorsObserver’s proprietary scoring system, gives WBA stock a score of 44 out of a possible 100. That score is based on three component scores. A fundamental score of 70, a long-term technical score of 27 and a short-term technical score of 36. Our proprietary system combines short and long-term technical factors, Wall Street’s opinion, and other fundamental factors into an overall score that measures a stock’s suitability for investment.

The major indices are rallying. The Dow Jones Industrial Average is up 0.31%. The S&P 500 is higher by 0.3%. The NASDAQ is higher by 0.28%.

Get more analysis and trade ideas on Walgreens Boots Alliance Inc (WBA) stock.

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Symbols: CVS WBA

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