Aditya Sarawgi
2 min read
In This Article:
Deerfield, Illinois-based Walgreens Boots Alliance, Inc. (WBA) operates as a healthcare, pharmacy, and retail company in the United States and internationally. With a market cap of $9.8 billion, the company operates through U.S. Retail Pharmacy, International, and U.S. Healthcare segments.
Companies worth $2 billion to $10 billion are typically referred to as "mid-cap stocks." WBA fits right into that category, with its market cap exceeding this threshold, reflecting its substantial size and influence in the pharmaceutical retailers industry. The company benefits from selling a wide range of prescription and non-prescription drugs, as well as general merchandise products through drugstores, mail, by telephone, and online.
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WBA currently trades 30.2% below its 52-week high of $16.25 recorded on Jun. 24, 2024. WBA's stock has gained 2.3% over the past three months, notably underperforming the Nasdaq Composite’s ($NASX) 10.4% uptick during the same time frame.
In the long term, WBA stock has surged 21.7% on a YTD basis, outperforming the Nasdaq’s 1.7% increase. However, shares of WBA declined 28.9% over the past 52 weeks, underperforming Nasdaq’s 11% returns over the same period.
To confirm its recent bullish trend, WBA has been trading above its 200-day moving average since early March and also above its 50-day moving average since late February, with some fluctuations.
WBA stock declined 1.1% following the release of its mixed Q2 earnings on Apr. 8. The company reported a 4.1% year-over-year increase in its net sales to $38.6 billion and successfully surpassed the Street’s estimates. However, its adjusted gross profit fell 1.5% from the previous year’s quarter to $7 billion. Additionally, the company’s adjusted operating income declined 12.8% from the year-ago quarter to $785 million. Despite a 47.5% year-over-year drop in its adjusted earnings to $0.63, the company successfully surpassed the consensus estimates by 18.9%. Following the initial drop in its shares, WBA stock rose 1.8% in the following trading session.