WBA - Walgreens: Beware The Value Trap Ahead Of Earnings
2024-06-24 08:40:04 ET
Summary
- Walgreens Boots Alliance shares have cratered following the stock being removed from the Dow Jones Industrial Average.
- While Q2 2024 adjusted operating EPS beat expectations, its management team was not all that optimistic about the rest of the year.
- Shares are expected to be volatile after this week's earnings release.
- I highlight key price levels to monitor along with putting forward a valuation assessment.
Walgreens Boots Alliance ( WBA ) was ‘booted’ from the Dow Jones Industrial Average earlier this year. Since the news broke, shares are down close to 30%, dividends included on the $14 billion market cap Drug Retail industry company. While getting cut from the DJIA roster is sometimes seen as a contrarian buy signal, that old Wall Street wisdom has not held true for WBA. And with meager EPS growth in the coming quarters and troubles regarding Boots, its drugstore that has been whispered to be an IPO candidate , there are clearly fundamental headwinds. ...
Walgreens: Beware The Value Trap Ahead Of Earnings