Walgreens Looks To Recover Losses After Fiscal Q2 Report

What's Happening With WBA View more about WBA >

Walgreens Boots Alliance, Inc. (WBA) will report its fiscal second-quarter numbers April 2. The company is expected to post earnings of $1.73 and show sales of $34.87 for the quarter. During the same period last year the company earned $1.73 on sales of $33 billion and the stock is down 7.1% on the year.

Technical Analysis

WBA was recently trading at $63.48 down $22.83 from its 12-month high and $4.41 above its 12-month low. InvestorsObserver’s Stock Score Report gives WBA a 31 long-term technical score and a 59 short-term technical score. The stock has recent support above $60 and recent resistance below $68. Of the 17 analysts who cover the stock 3 rate it Strong Buy, 1 rate it Buy, 11 rate it Hold, 1 rate it Sell, and 1 rate it Strong Sell, WBA gets a score of 53 from InvestorsObserver’s Stock Score Report.

Analysts' Thoughts

WBA is trading in the lower end of its 52-week range, but the stock does appear to have bottomed out at $60 and is trying to recover ahead of the upcoming quarterly report. The street expects to see a small earnings beat with a whisper number of $1.75 for the quarter which should help the stock recover some of its recent losses. The stock is trading at a reasonable price with a forward P/E of 16, and analysts expect to see earnings growth of 25% per annum over the next five years. Given the current valuation the downside is likely limited in WBA barring a huge earnings miss, and there is plenty of upside potential considering how much negativity has been priced into the stock. Analysts have an average price target of $72.93 on the stock.

WBA
About Walgreens Boots Alliance Inc.

Walgreens Boots Alliance (WBA) operates over 15,000 locations in 50 states and 25 countries. The core defensive positioning is primarily around the pharmacy that are placed in high traffic locations. Currently, the company has the largest retail pharmacy market share (around 20%, excluding mail) which provides significant cost advantages and scale. Annually, the company generates over $140 billion in revenue consisting of U.S. retail pharmacy (around 75%), International pharmacy (around 10%) and pharmaceutical wholesale (around 20%). WBA has established strategic partnerships to offer incremental services to increase average revenue per customer and has an equity stakes in AmerisourceBergen (26%) and Sinopharm Holding Guoda Drugstores Co, Ltd (40%).

  • Last Price:
    $52.90
  • Previous Close:
    $52.80
  • Change:
    $0.10 (0.19%)
  • Open:
    $52.99
  • Volume:
    4,886,780
  • Average Volume (100 Day):
    6,367,599
  • Market Capitalization:
    $48.4 B
  • Day's Range:
    $52.51 - $53.26
  • Dividend Yield:
    3.33%
  • 52-week Range:
    $86 - $49.31
  • P-E:
    9.90
  • EPS:
    $5.31
  • Earnings Date:
    6/27/19
  • Ex Dividend Date:
    5/17/19
  • Sector:
    Consumer Defensive
  • Industry:
    Pharmaceutical Retailers
  • Analyst Average Recommendation:
    Hold

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