Walgreens in the stock market
Walgreens Boots Alliance (WBA) stock rose 3.1% after it reported better-than-expected results on March 28, 2018. The stock closed at $67.59, which was 2.5% above the previous day’s closing price.
The company’s performance has not been good so far this year. It has already lost 7% year-to-date (or YTD) and is trading 30% below its 52-week high. However, it has performed better than rivals CVS Health (CVS) and Rite Aid (RAD), which have fallen 13.5% and 15.2%, respectively, YTD.
WBA also outperformed the seven-company S&P 500 Food & Staples Retail Index, which has fallen 8.5% YTD. In comparison, the S&P 500 Index has fallen 2.6% YTD.
Analysts’ actions after fiscal 2Q18 results
Analysts maintained their recommendations for WBA after the fiscal 2Q18 results. However, some of them revised their price targets. Barclays increased its price target from $76 to $77, RBC Capital lowered its target price from $94 to $88, and Evercore ISI lowered its target price from $85 to $76.
WBA now has an average price target of $83.58 from 27 Wall Street analysts. The current price target indicates an upside potential of 24% over the next 12 months. In comparison, CVS Health’s share price has a stronger upside of 41%.
WBA is rated a 2.3 on a scale of 1 for “strong buy” to 5 for “sell.” About 56% of the analysts are recommending a “buy” for the stock, and 44% are recommending a “hold.” There are no “sell” recommendations.
Barclays, Morgan Stanley, and Deutsche Bank are among the brokers who are recommending a “hold” for WBA. Evercore ISI, Citigroup, and Loop Capital are recommending a “buy.”
Investors looking for exposure to WBA through ETFs can consider the Consumer Staples Select Sector SPDR ETF (XLP). WBA makes up 3.6% of XLP.