Walgreens Stock Buy Hold or Sell Recommendation

WBA
 Stock
  

USD 40.59  0.52  1.30%   

Considering the 90-day investment horizon and your highly speculative risk level, our recommendation regarding Walgreens Boots Alliance is 'Strong Buy'. Macroaxis provides Walgreens Boots buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding WBA positions. The advice algorithm takes into account all of Walgreens Boots' available fundamental, technical, and predictive indicators you will find on this site.
  
The advice is provided from Walgreens Boots' buy-and-hold perspective. Check out Walgreens Boots Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. We conduct extensive research on individual companies such as Walgreens and provide practical buy, sell, or hold advice based on selected investing horizon and risk tolerance towards Walgreens Boots Alliance.

Execute Walgreens Boots Buy or Sell Advice

The Walgreens recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Walgreens Boots Alliance. Macroaxis does not own or have any residual interests in Walgreens Boots Alliance or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Walgreens Boots' advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell Walgreens BootsBuy Walgreens Boots
Strong Buy

Volatility

Very steadyDetails

Hype Condition

Low keyDetails

Current Valuation

UndervaluedDetails

Odds of Distress

Below AverageDetails

Economic Sensitivity

Almost mirrors the marketDetails

Analyst Consensus

SellDetails

Financial Strenth (F Score)

HealthyDetails

Financial Leverage

Not RatedDetails

Reporting Quality (M-Score)

Unlikely ManipulatorDetails
For the selected time horizon Walgreens Boots Alliance has a Risk Adjusted Performance of (0.037349), Jensen Alpha of (0.15), Total Risk Alpha of (0.18) and Treynor Ratio of (0.07)
Walgreens Boots Alliance trade recommendation module can be used to check and cross-verify current trade advice provided by analysts examining the company's potential to grow using all of fundamental, technical, data market data available at the time. To make sure Walgreens Boots Alliance is not overpriced, please check out all Walgreens Boots Alliance fundamentals, including its net income, book value per share, and the relationship between the revenue and total debt . Given that Walgreens Boots Alliance has a price to earning of 13.60 X, we strongly advise you to confirm Walgreens Boots Alliance market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your prevalent risk tolerance and investing horizon.

Walgreens Boots Trading Alerts and Improvement Suggestions

Walgreens Boots generated a negative expected return over the last 90 days
The company has 38.23 B in debt with debt to equity (D/E) ratio of 1.23, which is OK given its current industry classification. Walgreens Boots Alliance has a current ratio of 0.76, suggesting that it has not enough short term capital to pay financial commitments when the payables are due. Debt can assist Walgreens Boots until it has trouble settling it off, either with new capital or with free cash flow. So, Walgreens Boots' shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like Walgreens Boots Alliance sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Walgreens to invest in growth at high rates of return. When we think about Walgreens Boots' use of debt, we should always consider it together with cash and equity.
About 60.0% of Walgreens Boots outstanding shares are owned by institutional investors
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Walgreens Boots current analysts advice

We track the performance of the top 100 financial experts across various large and mid-size financial boutiques. Walgreens analyst recommendations are determined by taking all analyst recommendations and averaging them as Strong Buy, Buy, Hold, Strong Sell or Sell. There is no one specific way to measure analysis performance other than comparing it to the past results via a very sophisticated attribution analysis. Walgreens analyst consensus and target price projections should be used in combination with other traditional techniques such as stock price forecasting, technical analysis, earnings estimate, and various momentum models.
Target Mean Price41.83
Target Median Price42.00
Target High Price49.00
Recommendation Mean3.10
Number Of Analyst Opinions15
Target Low Price35.00
Average Consensus Sell
The consensus estimates and target price estimation comprises individual analyst assessments, and may or may not mutch the Macroaxis buy or sell advice. It is determined by taking an average of all analyst recommendations and classifying them as Strong Buy, Buy, Hold, or Sell.

Walgreens Boots Returns Distribution Density

The distribution of Walgreens Boots' historical returns is an attempt to chart the future uncertainty of Walgreens Boots' future price movements. The chart of the probability distribution of Walgreens Boots stock daily returns describes the distribution of returns around its average expected value. We use Walgreens Boots Alliance price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Walgreens Boots returns is essential to provide solid investment advice for Walgreens Boots stock.
Mean Return-0.06Value At Risk-2.92
Potential Upside1.97Standard Deviation1.91
   Return Density   
       Distribution  
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Walgreens Boots historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

Walgreens Boots Cash Flow Accounts

201720182019202020212022 (projected)
Net Cash Flow from Financing(5.29 B)(3.05 B)(4.65 B)(9.04 B)(10.39 B)(11.21 B)
Net Cash Flow from Investing(5.5 B)(2.31 B)(1.3 B)4.07 B3.66 B3.95 B
Net Cash Flow from Operations8.27 B5.59 B5.48 B5.55 B5 B5.2 B

Walgreens Boots Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Walgreens Boots or Healthcare sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Walgreens Boots stock's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Walgreens stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over DOW
-0.15
β
Beta against DOW1.09
σ
Overall volatility
1.96
Ir
Information ratio -0.08

Walgreens Boots Volatility Alert

Walgreens Boots Alliance exhibits very low volatility with skewness of -2.12 and kurtosis of 7.13. However, we advise investors to further study Walgreens Boots Alliance technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Walgreens Boots' stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Walgreens Boots' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Walgreens Boots Implied Volatility

Walgreens Boots' implied volatility" href="/stock-options/WBA/Walgreens-Boots-Alliance">Walgreens Boots' implied volatility exposes the market's sentiment of Walgreens Boots Alliance stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Walgreens Boots' implied volatility" href="/stock-options/WBA/Walgreens-Boots-Alliance">Walgreens Boots' implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Walgreens Boots stock will not fluctuate a lot when Walgreens Boots' options" href="/stock-options/WBA/Walgreens-Boots-Alliance">Walgreens Boots' options are near their expiration.

Walgreens Boots Fundamentals Vs Peers

Comparing Walgreens Boots' fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Walgreens Boots' direct or indirect competition across all of the common fundamentals between Walgreens Boots and the related equities. This way, we can detect undervalued stocks with similar characteristics as Walgreens Boots or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Walgreens Boots' fundamental indicators could also be used in its relative valuation, which is a method of valuing Walgreens Boots by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare Walgreens Boots to competition
FundamentalsWalgreens BootsPeer Average
Return On Equity18.17 %(0.31) %
Return On Asset1.95 %(0.14) %
Profit Margin4.00 %(1.27) %
Operating Margin3.43 %(5.51) %
Current Valuation72.92 B16.62 B
Shares Outstanding863.95 M571.82 M
Shares Owned by Insiders17.31 %10.09 %
Shares Owned by Institutions59.94 %39.21 %
Number of Shares Shorted27.27 M4.71 M
Price to Earning13.60 X28.72 X
Price to Book1.47 X9.51 X
Price to Sales0.26 X11.42 X
Revenue134.52 B9.43 B
Gross Profit28.07 B27.38 B
EBITDA4.61 B3.9 B
Net Income5.11 B570.98 M
Cash and Equivalents4.46 B2.7 B
Cash per Share5.16 X5.01 X
Total Debt38.23 B5.32 B
Debt to Equity1.23 %48.70 %
Current Ratio0.78 X2.16 X
Book Value Per Share27.06 X1.93 K
Cash Flow from Operations5.06 B971.22 M
Short Ratio3.61 X4.00 X
Earnings Per Share2.93 X3.12 X
Price to Earnings To Growth8.94 X4.89 X
Number of Employees315 K18.84 K
Beta0.59-0.15
Market Capitalization34.47 B19.03 B
Total Asset72.69 B29.47 B
Retained Earnings26.88 B9.33 B
Working Capital8.87 B1.48 B
Current Asset25.88 B9.34 B
   Acquisition by Dominic Murphy of 671 shares of Walgreens Boots subject to Rule 16b-3 [view details]

About Walgreens Boots Buy or Sell Advice

When is the right time to buy or sell Walgreens Boots Alliance? Buying financial instruments such as Walgreens Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the stock market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Although Walgreens Boots investors may find it confusing at the beginning, most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
 2019 2020 2021 2022 (projected)
Receivables7.13 B5.66 B5.1 B5.3 B
Inventories9.45 B8.16 B7.34 B7.51 B

Use Investing Ideas to Build Portfolios

In addition to having Walgreens Boots in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Rubber and Plastic
Rubber and Plastic Theme
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Rubber and Plastic theme has 56 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Rubber and Plastic Theme or any other thematic opportunities.
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Check out Walgreens Boots Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. Note that the Walgreens Boots Alliance information on this page should be used as a complementary analysis to other Walgreens Boots' statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.

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Is Walgreens Boots' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Walgreens Boots. If investors know Walgreens will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Walgreens Boots listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
-0.76
Market Capitalization
35.1 B
Quarterly Revenue Growth YOY
-0.042
Return On Assets
0.0195
Return On Equity
0.18
The market value of Walgreens Boots Alliance is measured differently than its book value, which is the value of Walgreens that is recorded on the company's balance sheet. Investors also form their own opinion of Walgreens Boots' value that differs from its market value or its book value, called intrinsic value, which is Walgreens Boots' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Walgreens Boots' market value can be influenced by many factors that don't directly affect Walgreens Boots' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Walgreens Boots' value and its price as these two are different measures arrived at by different means. Investors typically determine Walgreens Boots value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Walgreens Boots' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.