Latest news with #WalgreensBootsAlliance
Yahoo
7 days ago
- Business
- Yahoo
Where Will Walgreens Be in 1 Year?
Key Points Walgreens has agreed to be taken private for $11.45 per share. The deal has been approved by shareholders, and the stock is trading for slightly more than the takeover price. There's a nuance to the buyout story that could lead to an additional payout of as much as $3 per share. 10 stocks we like better than Walgreens Boots Alliance › Walgreens Boots Alliance (NASDAQ: WBA) has been a difficult stock to love for a few years, thanks to multiple corporate missteps. It got so bad that the board decided the best course of action was to effect a turnaround under private hands. That deal means that Walgreens won't be a publicly traded company a year from now. But that isn't the whole story, and more aggressive investors might still be interested in the stock because of a unique nuance of the take-private transaction. Here's what you need to know. From industry giant to going private There are only a handful of large pharmacy retailers, and Walgreens is one of them. For many years it was a growth business, but eventually the market became saturated. Often there was a Walgreens on one corner and one of its competitors just across the street. It's not shocking that growth stalled out throughout the sector. What happened next was that Walgreens looked for other ways to keep growing its business. It tried to buy into the pharmacy benefits management business, but that didn't go as well as hoped. And then it started to build out a healthcare clinic operation, but that didn't go as well as hoped. This company, which was on track to become a Dividend King, ended up cutting and then eliminating its dividend (the elimination came after the take-private agreement came about). Walgreens had recently been working to right-size its business, including closing locations. However, the revamp is likely to be a large undertaking that will be difficult to effect in the public markets. Investors don't like it when companies shrink, and that's exactly what Walgreens is in the process of doing. So, in early March, it agreed to be taken private by Sycamore Partners Management for $11.45 per share. The transaction is likely to close sometime in the second half of 2025. Why is Walgreens trading for more than the deal price? Normally in a takeover situation, the stock of the company being acquired trades for slightly less than the takeover price. That's because there is always a risk that the deal falls apart. However, Walgreens' shares are trading hands for slightly more than the takeover price, which suggests that there is something odd going on here. The wrinkle is that Sycamore Partners is planning on selling Walgreens' medical clinic business. And it will give Walgreens shareholders a chit that could be worth up to $3 per share, depending on the sales price it gets for the clinic business. So investors that are paying over $11.45 per share for Walgreens right now are, essentially, buying that chit, since they are locking in a loss on the Walgreens shares. There's just one problem. There is no timeline for the sale of the clinic business. And there is no guarantee on the price that Sycamore Partners will extract from the buyer. So the $3 chit could be worthless or, conversely, the length of time it takes to see any money could be very long, reducing the time value of the potential profit. There's just no way to tell what the outcome will be. And, as such, buying Walgreens today is not something that most investors should do, particularly if they are conservative by nature. More aggressive types that like special situations may like it, since the clinic business probably does have some value. But it is still a high-risk play that has a maximum upside of around 25%. That sounds like a lot, and it is, but only if the cash arrives quickly. Walgreens will be gone in a year, but not forgotten In one year, Walgreens will no longer be a public company. But it will linger in the minds of investors because of the $3 chit tied to the sale of the medical clinic business. That said, in the long term, it seems highly likely that Walgreens will eventually go public again -- with completely different shares -- hopefully with a better industry position. However, only aggressive investors should be looking at Walgreens right now. Should you buy stock in Walgreens Boots Alliance right now? Before you buy stock in Walgreens Boots Alliance, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Walgreens Boots Alliance wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $653,427!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,119,863!* Now, it's worth noting Stock Advisor's total average return is 1,060% — a market-crushing outperformance compared to 182% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of August 4, 2025 Reuben Gregg Brewer has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Where Will Walgreens Be in 1 Year? was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
31-07-2025
- Business
- Yahoo
Is Wall Street Bullish or Bearish on Walgreens Boots Alliance Stock?
Walgreens Boots Alliance, Inc. (WBA), headquartered in Deerfield, Illinois, operates as a healthcare, pharmacy, and retail company. Valued at $10.1 billion by market cap, the company offers a wide variety of prescription and non-prescription drugs, as well as primary and acute care, wellness, pharmacy, and disease management services, and health and fitness. Invest in Gold Thor Metals Group: Best Overall Gold IRA Priority Gold: Up to $15k in Free Silver + Zero Account Fees on Qualifying Purchase American Hartford Gold: #1 Precious Metals Dealer in the Nation Shares of this retail pharmacy giant have underperformed the broader market over the past year. WBA has declined 4.4% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 17%. However, in 2025, WBA stock is up 24.7%, surpassing the SPX's 8.2% rise on a YTD basis. More News from Barchart Morgan Stanley Says Nvidia Has 'Exceptional' Strength. Should You Buy NVDA Stock Here? Dear MicroStrategy Stock Fans, Mark Your Calendars for July 31 2 Growth Stocks Wall Street Predicts Will Soar 74% to 159% Get exclusive insights with the FREE Barchart Brief newsletter. Subscribe now for quick, incisive midday market analysis you won't find anywhere else. Zooming in further, WBA's outperformance is also apparent compared to the Health Care Select Sector SPDR Fund (XLV). The exchange-traded fund has declined about 10.7% over the past year. Moreover, WBA's double-digit gains on a YTD basis outshine the ETF's 2.5% dip over the same time frame. On Jun. 26, WBA shares closed up marginally after reporting its Q3 results. Its adjusted EPS of $0.38 surpassed Wall Street's expectations of $0.34. The company's revenue was $39 billion, beating Wall Street forecasts of $36.6 billion. For the current fiscal year, ending in August, analysts expect WBA's EPS to decline 41% to $1.70 on a diluted basis. The company's earnings surprise history is impressive. It beat the consensus estimate in each of the last four quarters. Among the 13 analysts covering WBA stock, the consensus is a 'Hold.' That's based on one 'Strong Buy' rating, 11 'Holds,' and one 'Moderate Sell.' The configuration has been consistent over the past three months. On Jun. 26, Evercore ISI analyst Elizabeth Anderson CFA reiterated a 'Hold' rating on WBA with a price target of $11.45. While WBA currently trades above its mean price target of $11.54, the Street-high price target of $15 suggests a 29% upside potential. On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on
Yahoo
29-07-2025
- Business
- Yahoo
Walgreens Boots Alliance's Quarterly Earnings Preview: What You Need to Know
With a market cap of $10.1 billion, Walgreens Boots Alliance, Inc. (WBA) is a global healthcare, pharmacy, and retail company operating in the United States and internationally. The company provides a broad range of services through its U.S. Retail Pharmacy, International, and U.S. Healthcare segments, including prescription and non-prescription drugs, health and wellness products, and value-based medical care. Analysts expect the Deerfield, Illinois-based company to report adjusted earnings of $0.25 per share in Q4 2025, down 35.9% from $0.39 per share in the year-ago quarter. However, the company has surpassed Wall Street's earnings estimates in the last four quarters. More News from Barchart Tesla Just Signed a Chip Supply Deal with Samsung. What Does That Mean for TSLA Stock? Here's What Happened the Last Time Novo Nordisk Stock Was This Oversold Dear Microsoft Stock Fans, Mark Your Calendars for Aug. 1 Get exclusive insights with the FREE Barchart Brief newsletter. Subscribe now for quick, incisive midday market analysis you won't find anywhere else. For fiscal 2025, analysts expect the largest U.S. drugstore chain to report an adjusted EPS of $1.70, a decrease of nearly 41% from $2.88 in fiscal 2024. Shares of Walgreens Boots Alliance have dropped 2.6% over the past 52 weeks, lagging behind both the S&P 500 Index's ($SPX) 16.8% return and the Consumer Staples Select Sector SPDR Fund's (XLP) 3.6% gain over the same period. Shares of Walgreens Boots Alliance recovered marginally following its Q3 2025 results on Jun. 26 due to better-than-expected adjusted EPS of $0.38 and revenue of around $39 billion, driven by aggressive cost-cutting measures, including executive reductions and store closures. Key contributors included an 8% rise in U.S. retail pharmacy sales to $30.7 billion and a 10.3% increase in same-store sales, reflecting the management's $1 billion cost-reduction plan and strategic store closures. Analysts' consensus view on WBA stock is cautious, with a "Hold" rating overall. Among 13 analysts covering the stock, one recommends "Strong Buy," 11 suggest "Hold," and one advises "Moderate Sell." As of writing, the stock is trading above the average analyst price target of $11.54. On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Sign in to access your portfolio
Yahoo
11-07-2025
- Business
- Yahoo
3 Things You Need to Know If You Buy Walgreens Today
Walgreens is a special situations stock. The upside for investors is limited, but there's potential downside risk. There's an odd situation that could increase the upside, but it is an uncertain outcome. 10 stocks we like better than Walgreens Boots Alliance › Walgreens Boots Alliance (NASDAQ: WBA) is one of the largest pharmacy retailers in the United States. Over the past several years, the company has made a number of poor investment decisions. As management looks to turn the business around, Walgreens has become a special situation stock. There are very important implications to consider before you buy the shares today. Here are three things you need to know if you are considering buying Walgreens stock today. The term "special situations" covers a lot of ground on Wall Street. In the case of Walgreens, the situation that is special is that the company is being taken private. Essentially, it is being bought by Sycamore Partners, which describes itself as a private equity firm specializing in retail, consumer, and distribution-related investments. There are implications for the stock, which are discussed below, but the big question that should be on an investor's mind is "Why is this happening?" The answer is that Walgreens operates in a mature market -- drug stores -- that is highly competitive. Looking for a way to continue growing, management attempted to reach beyond the retail sector. It tried being a drug distributor, and it didn't work out. It tried opening health clinics, and that didn't work out. Meanwhile, the core retail business has struggled. At this point, it appears as if Walgreens needs a material overhaul that will be better handled outside of the public markets. This will allow decisions to be made that investors might not like, such as shrinking the business. Simply put, if you buy Walgreens today, you are buying a business that is struggling. When a company is bought out, like the plan is for Walgreens, there is an offer price. The offer price here, to which Walgreens has agreed, is $11.45 per share in cash. If the deal goes through, that is all that a shareholder can be confident in collecting. Today Walgreens' share price is just a few cents below that price. So, basically, buying today will leave you with, at best, a couple of percent of guaranteed upside (or less) if the deal is consummated as expected. But what about the downside? The 52-week low for Walgreens' stock was a little over $8 per share. You can argue about whether or not that's a reasonable price, but if the deal falls through, the stock will almost certainly decline. And $8 is a fair assessment of the downside risk, given that the stock traded at that level not too long ago. Essentially, if you buy Walgreens today, you are buying a stock where the downside risk could be much larger than the upside opportunity. To be fair, the upside is potentially larger than point two suggests. That's because there is an earn-out provision that could be worth up to $3 per share. That is not a guarantee; the number could be anywhere from zero to $3. And there's no time frame attached to that payment, either. It could happen in one day or much, much longer. The earn-out provision is tied to the proceeds that Sycamore Partners may generate from selling Walgreens' health clinic business. There is likely some value in the business, but how much and how long it takes to realize that value is not clear. So investors buying Walgreens today are really betting that they will get that $3 fairly quickly. The full amount would represent a roughly 25% gain over the buyout price, which is material. But the return falls materially if less than $3 is the outcome, and as time goes on, given the time value of money. In essence, you are gambling that there will be a quick and positive outcome with regard to the $3 earn-out provision with Sycamore Partners if you buy Walgreens today. Just go in recognizing that there's no way to actually predict what happens. The guaranteed upside is basically gone if you buy Walgreens, a troubled retailer, today. Investors buying it are effectively trying to play for that $3 earn-out, which isn't really the type of investment approach that most people use to create long-term wealth. If you are an aggressive and very active investor, Walgreens stock might interest you. But recognize the risks you are taking. For most, there are better investment choices for building long-term wealth. Before you buy stock in Walgreens Boots Alliance, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Walgreens Boots Alliance wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $697,627!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $939,655!* Now, it's worth noting Stock Advisor's total average return is 1,045% — a market-crushing outperformance compared to 178% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 30, 2025 Reuben Gregg Brewer has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. 3 Things You Need to Know If You Buy Walgreens Today was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Forbes
27-06-2025
- Business
- Forbes
Best Buy Appoints Neal Sample As New Technology Chief To Boost Digital Strategy
A Best Buy retail store Best Buy has named Neal Sample as its new chief digital and technology officer, bringing in a seasoned executive with a wide-ranging background to accelerate the company's digital transformation. He will start on July 14, 2025 Sample most recently served as executive vice president and CIO at Walgreens Boots Alliance, where he held the role for just under two years. That was proceeded by the CIO post at Northwestern Mutual and being promoted from CIO to COO of Express Scripts prior to its purchase by Cigna. He is also a past Group President of Enterprise Growth at American Express. Sample also has a PhD in Computer Science from Stanford University. Neal Sample He succeeds Brian Tilzer, who joined Best Buy in 2018 and carried the title of Chief Digital, Analytics, and Technology Officer of the company. He joined Best Buy after having been the Chief Digital Officer of CVS Health. In a note to employees, CEO Corie Barry praised Sample's breadth of experience across both traditional and tech-driven organizations. 'Neal has a unique background, having spent time in legacy businesses as well as in high-tech and digitally native companies,' Barry wrote, the latter referring to Sample's stints at the likes of eBay and Yahoo!. She also noted that his leadership approach is expected to help Best Buy move 'with greater speed, clarity and conviction.' 'I'm thrilled to join Best Buy at such a pivotal moment,' Sample underscored. 'It's a brand I've long admired with a strong foundation and a clear commitment to innovation. I'm excited to partner with the team to accelerate digital initiative and deliver increasing value to customers.' The leadership change comes as Best Buy works to sharpen its digital edge in an increasingly competitive consumer electronics landscape. Peter High is President of Metis Strategy, a business and IT advisory firm. He has written three bestselling books, including his latest Getting to Nimble. He also moderates the Technovation podcast series and speaks at conferences around the world. Follow him on Twitter @PeterAHigh.
