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Walgreens' (WBA) New Partnerships Aid, Retail Sales Dip
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Walgreens Boots Alliance, Inc.’s(WBA - Free Report) series of strategic deals is expected to benefit it more over the long run. Its strong cash balance and progress in cost-cutting initiatives further boost investor confidence in the stock. The stock carries a Zacks Rank #3 (Hold).
Over the past six months, the company has outperformed the industry it belongs to. The stock has gained 36.9% compared with the industry’s 29.5% rise.
Walgreens Boots exited second-quarter fiscal 2021 with better-than-expected earnings despite pandemic-led business challenges. Impressive performances by the newly-formed operating segments, United States and International, buoy optimism. Robust sales of Boots.com instill investor confidence.
Walgreens Boots’ response toward combatting the pandemic — conducting COVID-19 tests at various locations and actively participating in vaccinating residents and staff — is impressive. Faster retail pick-up in the United States, along with acceleration of its investment in VillageMD, and boosting of the rollout of Village Medical at Walgreens full-service primary care clinics look encouraging.
Walgreens Boots’ strategic partnerships also look impressive. Various product launches bode well for the company.
Walgreens Boots, in March 2021, partnered with InComm Payments to launch a new bank account for its customers at MetaBank with a Mastercard debit card.
The company, during its fiscal second-quarter earnings call, confirmed that it has introduced COVID-19 vaccination bookings on its MyWalgreens app, for which it is partnering with Nuance. On the call, Walgreens Boots also confirmed that it has tied up with Uber to ensure that more Americans are able to visit a vaccination location.
Walgreens Boots, in January 2021, announced strategic agreements with its long-standing partner AmerisourceBergen to sell them its international healthcare and distribution business alliance. Walgreens Boots’ notable partnerships include those with Verizon in the United States, Genpact, Kroger and a tie-up with Alphabet’s life sciences and healthcare segment, Verily.
On the flip side, Walgreens Boots is uncertain about the scope of evolution of the pandemic till now. Although the company has raised its outlook for adjusted earnings per share at constant exchange rate or CER for fiscal 2021 to mid-to-high single digit growth (earlier growth was projected to be in low single digits), the pandemic-led uncertainties persist. The surge in infections across many of Walgreens Boots’ markets worldwide is concerning for the company.
In the fiscal second quarter, Walgreens Boots’ revenues at the International division declined 9.9% at CER, primarily due to a 17.8% decrease in Boots UK sales, resulting from COVID-related impacts.
Boots UK’s comparable retail sales declined 17.9% at CER as footfall in stores remained significantly depressed due to COVID-19, particularly in major high-street, train station and airport locations. Further, Boots UK retail store’s overall transactions were down approximately 50% year over year.
Zacks Rank and Key Picks
A few better-ranked stocks from the broader medical space are National Vision Holdings, Inc. (EYE - Free Report) , The Cooper Companies, Inc. (COO - Free Report) and Envista Holdings Corporation (NVST - Free Report) . While National Vision sports a Zacks Rank #1 (Strong Buy), both The Cooper Companies and Envista Holdings carry a Zacks Rank #2 (Buy). You can see the complete list of Zacks #1 Rank stocks here.
National Vision has a projected long-term earnings growth rate of 23%.
The Cooper Companies has a projected long-term earnings growth rate of 11%.
Envista Holdings has an estimated long-term earnings growth rate of 26%.
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After a clean sweep of 6 election referendums in 5 states, pot is now legal in 36 states plus D.C. Federal legalization is expected soon and that could be a still greater bonanza for investors. Even before the latest wave of legalization, Zacks Investment Research has recommended pot stocks that have shot up as high as +285.9%
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Walgreens' (WBA) New Partnerships Aid, Retail Sales Dip
Walgreens Boots Alliance, Inc.’s (WBA - Free Report) series of strategic deals is expected to benefit it more over the long run. Its strong cash balance and progress in cost-cutting initiatives further boost investor confidence in the stock. The stock carries a Zacks Rank #3 (Hold).
Over the past six months, the company has outperformed the industry it belongs to. The stock has gained 36.9% compared with the industry’s 29.5% rise.
Walgreens Boots exited second-quarter fiscal 2021 with better-than-expected earnings despite pandemic-led business challenges. Impressive performances by the newly-formed operating segments, United States and International, buoy optimism. Robust sales of Boots.com instill investor confidence.
Walgreens Boots Alliance, Inc. Price
Walgreens Boots Alliance, Inc. price | Walgreens Boots Alliance, Inc. Quote
Walgreens Boots’ response toward combatting the pandemic — conducting COVID-19 tests at various locations and actively participating in vaccinating residents and staff — is impressive. Faster retail pick-up in the United States, along with acceleration of its investment in VillageMD, and boosting of the rollout of Village Medical at Walgreens full-service primary care clinics look encouraging.
Walgreens Boots’ strategic partnerships also look impressive. Various product launches bode well for the company.
Walgreens Boots, in March 2021, partnered with InComm Payments to launch a new bank account for its customers at MetaBank with a Mastercard debit card.
The company, during its fiscal second-quarter earnings call, confirmed that it has introduced COVID-19 vaccination bookings on its MyWalgreens app, for which it is partnering with Nuance. On the call, Walgreens Boots also confirmed that it has tied up with Uber to ensure that more Americans are able to visit a vaccination location.
Walgreens Boots, in January 2021, announced strategic agreements with its long-standing partner AmerisourceBergen to sell them its international healthcare and distribution business alliance. Walgreens Boots’ notable partnerships include those with Verizon in the United States, Genpact, Kroger and a tie-up with Alphabet’s life sciences and healthcare segment, Verily.
On the flip side, Walgreens Boots is uncertain about the scope of evolution of the pandemic till now. Although the company has raised its outlook for adjusted earnings per share at constant exchange rate or CER for fiscal 2021 to mid-to-high single digit growth (earlier growth was projected to be in low single digits), the pandemic-led uncertainties persist. The surge in infections across many of Walgreens Boots’ markets worldwide is concerning for the company.
In the fiscal second quarter, Walgreens Boots’ revenues at the International division declined 9.9% at CER, primarily due to a 17.8% decrease in Boots UK sales, resulting from COVID-related impacts.
Boots UK’s comparable retail sales declined 17.9% at CER as footfall in stores remained significantly depressed due to COVID-19, particularly in major high-street, train station and airport locations. Further, Boots UK retail store’s overall transactions were down approximately 50% year over year.
Zacks Rank and Key Picks
A few better-ranked stocks from the broader medical space are National Vision Holdings, Inc. (EYE - Free Report) , The Cooper Companies, Inc. (COO - Free Report) and Envista Holdings Corporation (NVST - Free Report) . While National Vision sports a Zacks Rank #1 (Strong Buy), both The Cooper Companies and Envista Holdings carry a Zacks Rank #2 (Buy). You can see the complete list of Zacks #1 Rank stocks here.
National Vision has a projected long-term earnings growth rate of 23%.
The Cooper Companies has a projected long-term earnings growth rate of 11%.
Envista Holdings has an estimated long-term earnings growth rate of 26%.
Time to Invest in Legal Marijuana
If you’re looking for big gains, there couldn’t be a better time to get in on a young industry primed to skyrocket from $17.7 billion back in 2019 to an expected $73.6 billion by 2027.
After a clean sweep of 6 election referendums in 5 states, pot is now legal in 36 states plus D.C. Federal legalization is expected soon and that could be a still greater bonanza for investors. Even before the latest wave of legalization, Zacks Investment Research has recommended pot stocks that have shot up as high as +285.9%
You’re invited to check out Zacks’ Marijuana Moneymakers: An Investor’s Guide. It features a timely Watch List of pot stocks and ETFs with exceptional growth potential.
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