Walgreens shares drop as S&P 500 edges higher

NEW YORK – Shares of Walgreens Boots Alliance (NASDAQ:) Inc. took a downturn on Thursday, ending a two-day streak of gains amid a mixed trading session. The pharmacy chain’s stock declined by 3.71% to close at $20.75, significantly trailing its year-high of $42.29 set last December.

The broader market saw a modest uptick, with the S&P 500 Index inching up by 0.12% to finish at 4,508.24. Meanwhile, the slightly retreated, closing down 0.13% at 34,945.47.

Walgreens’ performance stood out on a day where its peers and competitors, including Amazon.com Inc (NASDAQ:)., CVS Health Corp (NYSE:)., and McKesson Corp (NYSE:)., did not face similar declines. The trading volume for Walgreens was notably lower than average, with only 10.7 million shares changing hands compared to its usual volume, falling short by approximately 2 million shares.

Investors are reflecting on Walgreens’ current market position as it fell $21.54 below its peak from the previous year, signaling a period of underperformance relative to the sector. This comes during a time when the retail pharmacy industry faces challenges and increased competition from both brick-and-mortar and online entities.

InvestingPro Insights

Based on real-time data from InvestingPro, Walgreens Boots Alliance Inc. (WBA) has a market capitalization of 17.93 billion USD. The company’s Price/Earnings ratio is currently at -5.81, indicating that the market has been pricing the stock below its earnings potential. However, the adjusted P/E ratio as of Q4 2023 is 10.15, suggesting an anticipated improvement in earnings. Moreover, the company’s revenue growth for Q4 2023 is projected at 4.81%.

Two key InvestingPro Tips to consider are: Walgreens has a history of consistent dividend payments, having raised its dividend for 48 consecutive years. This is a positive sign for investors seeking steady income. Moreover, despite the recent downturn, Walgreens remains a prominent player in the Consumer Staples Distribution & Retail industry, which could indicate potential for recovery.

For more in-depth analysis and additional tips, consider exploring InvestingPro’s comprehensive suite of investing tools. There are 13 additional tips available for Walgreens on the platform, providing a more holistic view of the company’s performance and future prospects.

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