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Headquartered in Deerfield, Illinois, Walgreens Boots Alliance, Inc. (WBA) is a global pharmacy and healthcare company with a market cap of $8 billion. Walgreens Boots Alliance provides a wide range of health and wellness products and services, serving millions of customers across various countries through its extensive retail and online presence.
Shares of Walgreens Boots have significantly underperformed the broader market over the past year. WBA has declined 57.2% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 36.4%. In 2024 alone, the stock is down 64.5%, compared to the SPX’s 25.3% rise on a YTD basis.
Narrowing the focus, WBA has significantly underperformed the Vanguard Health Care Index Fund ETF Shares (VHT). The stock has lagged behind the exchange-traded fund’s 9.8% YTD returns.
On Oct. 22, Walgreens Boots Alliance’s shares dropped 7.2% after Walmart announced same-day prescription delivery, raising competitive concerns for Walgreens as it faces increasing pressure from online and tech-forward retailers like Walmart and Amazon.
However, WBA stock surged over 15% on Oct. 15 after reporting Q4 sales of $37.55 billion, beating the expectations of $35.56 billion. The company also projected 2025 sales between $147 billion to $151 billion, exceeding the consensus estimate of $146.9 billion.
For the current fiscal year, ending in August 2025, analysts expect WBA’s EPS to decline 46.9% year over year to $1.53 on a diluted basis. The company's earnings surprise history is mixed. It beat the consensus estimate in three of the last four quarters while missing the forecast on another occasion.
Among the 15 analysts covering WBA stock, the consensus rating is a “Hold.” That’s based on two “Strong Buy” ratings, ten “Holds,” one “Moderate Sell,” and two “Strong Sells.”
This configuration has been almost consistent over the past month.
On Oct. 23, Jefferies analyst Brian Tanquilut lowered the Walgreens Boots Alliance's price target to $9 from $19, citing ongoing fundamental challenges despite some recent stock gains, while noting potential asset sales could still benefit the company’s cash flow and value.
The mean price target is $10.23, representing a premium of 10.4% compared to WBA’s current price levels. The Street-high price target of $15 suggests an upside potential of 61.8%.
On the date of publication, Rashmi Kumari 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. For more information please view the Barchart Disclosure Policy here.
