Hope for Recovery: Walgreens Boots Alliance in Crisis
- Analysts remain optimistic and see profit growth with attractive return opportunities in the medium term despite the profit decline.
- Walgreens Boots Alliance struggles with a 90% stock price loss and seeks a turnaround through restructuring measures.
Eulerpool News·
The Walgreens Boots Alliance, known in the healthcare industry and as a go-to source for pharmaceutical products, is facing a challenging phase. Failed expansion efforts have burdened the balance sheet and led to a dramatic 90% drop in the stock's value from its peak. To initiate a turnaround, the company is now implementing tough restructuring measures. By reducing debt and closing unprofitable stores, a shift towards profit growth is targeted. Currently, the stock offers a high dividend yield of 11% and, if the recovery succeeds, could become a revenue driver for investors. However, competition from mail-order and online pharmacies increases the pressure and challenges Walgreens' traditional position. While CVS Health has entered the health insurance market by acquiring Aetna, Walgreens pursued a less successful path in the care sector. Analysts are optimistic: Although Walgreens expects a decline in earnings, medium-term forecasts predict an average profit growth of 5%. This outlook is encouraging given the attractive valuation metrics: The stock is traded with a P/E ratio of 6 and a PEG of 1.1, offering prospects of considerable returns including dividend payouts. Modern Financial Markets Data
Eulerpool Data & Analytics
Modern Financial Markets Data
Better · Faster · Cheaper
The highest-quality data scrubbed, verified and continually updated.
- 10m securities worldwide: equities, ETFs, bonds
- 100 % realtime data: 100k+ updates/day
- Full 50-year history and 10-year estimates
- World's leading ESG data w/ 50 billion stats
- Europe's #1 news agency w/ 10.000+ sources
Save up to 68 % compared to legacy data vendors
New
Dec 16, 2024