The charts, the sell-side activity, and the outlook for a rebound have Walgreens Boots Alliance (NASDAQ: WBA) stock tracking for a rebound that will likely begin this year. Trading at only 6x earnings, this high-yielding deep-value has headwinds to bear and hurdles to cross, but there is nowhere for its stock price to go but up.
Details from 2024 include slowing growth, warnings, and plans for store closures that impacted the near-term outlook but improved the long-term. Store closures and trimming other cumbersome assets is not a surprise; management bit the bullet when it decided, and it was the smart thing to do. The impact is that the consensus forecast is for earnings contraction to bottom this year, hold steady in 2026, and revert to growth soon after.
