65.60 -0.03 (-0.05%)
Pre-market: 8:03AM EDT
|Bid||65.50 x 1300|
|Ask||65.69 x 800|
|Day's range||64.80 - 65.67|
|52-week range||59.07 - 83.89|
|PE ratio (TTM)||15.45|
|Earnings date||27 Jun 2018 - 2 Jul 2018|
|Forward dividend & yield||1.76 (2.78%)|
|1y target est||71.32|
Shares of Walgreens Boots Alliance (WBA) are down 16.5% over the last year based mostly on Amazon (AMZN) fears. There is no doubt that online selling and delivery have altered the retail world, but does that mean Walgreens can no longer compete? Let's dive into some of WBA's fundamentals to see what to do with the stock.
Donald Trump met with business people from both sides of the Atlantic Ocean Thursday evening as his host Theresa May aimed to impress the U.S. president with Blenheim Palace, the opulent 300-year-old birthplace of World War II leader Winston Churchill. “Mr. President, Sir Winston Churchill once said that ‘to have the United States at our side was, to me, the greatest joy,”’ May told Trump at the dinner, according to her office. Fresh from a NATO summit in Brussels in which he demanded other Western nations double their defense contributions to 4 percent of gross domestic product, May is organizing the formal dinner -- tuxedo and black tie a must -- to talk up trade prospects with the U.S. following Brexit next year.
On July 10, Walgreens Boots Alliance (WBA) was downgraded to “in-line” from “outperform” by Ross Muken, an analyst at Evercore ISI, according to a report from CNBC. Walgreens fell 0.8% to $63.20 on July 10. Walgreens has fallen ~13% year-to-date.
Walgreens isn't the only one feeling the pressure of Amazon's PillPack acquisition, as one analyst copped to incorrectly calculating how the e-commerce giant would be able to compete with drugstores.
MARKET PULSE Shares of Walgreens Boots Alliance Inc. (wba) dropped 0.5% in morning trade Tuesday, enough to pace the Dow Jones Industrial Average's (djia) decliners, after Evercore ISI downgraded the drug store chain citing a "long litany" of potential headwinds.
Evercore ISI analyst Ross Muken was the latter, by his own admission, with his lengthy support of Walgreens Boots Alliance. “Everyone makes mistakes (I think my mom taught me this?),” wrote Evercore ISI analyst Ross Muken in a note to clients on Tuesday. In the past 12 months, shares of Walgreens have dropped 18 percent, propelled by a 10 percent nosedive two weeks ago after Amazon.com Inc. announced its purchase of online pharmacy PillPack, putting it in direct competition with Jeff Bezos’s megalith.
Walgreens received the top-score of 100 percent on the 2018 Disability Equality Index® (DEI), a national benchmarking survey and report on corporate policies and practices related to disability inclusion and workplace equality, administered by the American Association of People with Disabilities (AAPD) and the U.S. Business Leadership Network (USLBN). This marks the second consecutive year Walgreens has earned a 100 percent score from the DEI and named one of the DEI Best Places to Work for Disability Inclusion.
While convenience is still a high priority, meal-kit companies are adapting to Amazon's possible entrance to the market and offering more ways for consumers to purchase their products.
Median prices for over-the-counter, private-brand medicine sold by Walgreens Boots Alliance Inc. and CVS Health Corp. were about 20 percent higher than Basic Care, the over-the-counter drug line sold exclusively by Amazon, according to a report Friday by Jefferies Group analysts. Last week, Amazon announced that it was buying PillPack, a pharmacy company that will give it an entry point into the U.S.’s $328.6 billion market for prescription drugs. Shares of CVS and Walgreens plunged on the news, as investors bet Amazon could lure pharmacy customers with lower prices, and give them one less reason to go to the corner drugstore.
Analysts found CVS' products were 20 percent more expensive than Amazon's at the median, while Walgreen's were 22 percent higher than Amazon's.
Amazon to blame? Walgreens Boots Alliance (WBA) stock fell 17.4% in the first six months of 2018, and the reason is Amazon (AMZN). On June 28, the e-commerce giant announced the acquisition of online pharmacy PillPack, and the stocks of Walgreens Boots Alliance, Rite Aid (RAD), and CVS Health (CVS) fell 9.9%, 11.1%, and 6.1%, respectively.
Rite Aid (RAD) gathers momentum on pending merger with Albertsons, the sale of assets to Walgreens, lesser debt burden and a robust outlook.
For $1 billion, the e-commerce giant got an instant large-scale entry into prescription drug sales.
The Dow Jones Industrial Average cited the industrials sector waning significance to the economy in dropping GE, but it is the DJIA itself that is irrelevant. Adding Walgreens as General Electric's replacement two days before Amazon entered the pharmacy business helps prove it.
Walgreens Boots Alliance, Inc. (WBA) today announced that, following receipt of regulatory approvals, it has completed the previously announced agreement to acquire a 40 percent minority stake in Sinopharm Holding GuoDa Drugstores Co., Ltd. (“GuoDa”), a leading retail pharmacy chain in China. Walgreens Boots Alliance acquired the minority stake in GuoDa through a capital increase worth RMB2.767 billion (around $416 million), and will account for the stake as an equity method investment. Executive Vice Chairman and CEO Stefano Pessina commented: “We are delighted that we have received regulatory approvals and our investment agreement has now been completed.
Earlier, we discussed how Amazon’s (AMZN) purchase of PillPack is expected to pose a threat to existing players in the pharmaceutical space. It’s very likely that these concerns have been picked up by the market, as the stocks of all major players in the space have lost considerable value.
Walgreens Boots Alliance (WBA) reported its Q3 2018 results on June 28 before the market opened. The company reported a 14% YoY (year-over-year) increase in revenue to $34.3 billion. EPS rose 15% YoY (year-over-year) to $1.53. Revenue and EPS surpassed estimates by 0.8% and 3.4%, respectively. Despite strong results, Walgreens stock plummeted 11.2% last week after Amazon (AMZN) announced its PillPack acquisition deal. CVS Health (CVS) stock also fell 10.8% after the announcement.
Companies announced $433.6 billion in share repurchases during the period, nearly doubling the previous record of $242.1 billion in the first quarter. At the same time, investors dumped $23.7 billion in stock market-focused funds in June, also a new record.
As we’ve seen in this series, Walgreens Boots Alliance (WBA) posted better-than-expected fiscal third-quarter results before the market opened on June 28. Management also raised the lower end of the company’s fiscal 2018 earnings guidance and announced plans to repurchase up to $10 billion of its shares and increase its dividends by 10% to $0.44.