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On Apr 17, we issued an updated research report on Walgreens Boots Alliance, Inc. (WBA - Free Report) . The company has been reaping benefits from its growth initiatives and major business tie-ups. However, fierce competition and tough industry conditions are concerns. The stock currently carries a Zacks Rank #3 (Hold).
Walgreens Boots posted better-than-expected second-quarter fiscal 2020 results. The uptick in Retail Pharmacy USA came from comparable prescription sales growth and a strong retail prescription market. Rise in Pharmaceutical Wholesale sales added to the optimism. Amid the coronavirus-led doldrums, these businesses recorded sales growth on higher customer demand.
Progress made from new strategic partnerships was impressive too. Walgreens’ tie-ups with Alphabet’s life sciences and healthcare segment, Verily on multiple projects related to chronic ailments buoyed optimism. Regarding Walgreens’ newly-formed partnership with Kroger, the company stated that the grocery trials in the U.S. retail segment are progressing well. Also, the company recently entered into a multi-year Medicare agreement with UnitedHealthcare.
On the flip side, although Walgreens witnessed solid demand for Retail Pharmacy & Pharmaceutical Wholesale products, the coronavirus-led market rout impacted its guidance. Given so many rapidly-changing variables related to the pandemic, it is currently difficult to gauge its impact on the company. Hence, Walgreens refrained from updating its fiscal guidance for now. The company aims to update the fiscal guidance on its next earnings call.
Further, the year-over-year decline in adjusted earnings is concerning. Challenging market conditions, particularly in retail, have been inducing sluggishness in the Retail Pharmacy International division. Tough market conditions, particularly in retail, and a tough competitive landscape are other headwinds for the company.
Over the past six months, shares of the company have underperformed its industry. The stock has lost 22.4% compared with the broader industry’s fall of 10.9%.
Key Picks
Some better-ranked stocks from the broader medical space are ResMed Inc. (RMD - Free Report) , National Vision Holdings, Inc. (EYE - Free Report) and Phibro Animal Health Corporation (PAHC - Free Report) .
National Vision’s long-term earnings growth rate is estimated at 10.7%. The company presently has a Zacks Rank #2.
Phibro’s long-term earnings growth rate is estimated at 2.1%. It currently carries a Zacks Rank #2.
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Walgreens' Retail Pharmacy Grows Amid Coronavirus Crisis
On Apr 17, we issued an updated research report on Walgreens Boots Alliance, Inc. (WBA - Free Report) . The company has been reaping benefits from its growth initiatives and major business tie-ups. However, fierce competition and tough industry conditions are concerns. The stock currently carries a Zacks Rank #3 (Hold).
Walgreens Boots posted better-than-expected second-quarter fiscal 2020 results. The uptick in Retail Pharmacy USA came from comparable prescription sales growth and a strong retail prescription market. Rise in Pharmaceutical Wholesale sales added to the optimism. Amid the coronavirus-led doldrums, these businesses recorded sales growth on higher customer demand.
Progress made from new strategic partnerships was impressive too. Walgreens’ tie-ups with Alphabet’s life sciences and healthcare segment, Verily on multiple projects related to chronic ailments buoyed optimism. Regarding Walgreens’ newly-formed partnership with Kroger, the company stated that the grocery trials in the U.S. retail segment are progressing well. Also, the company recently entered into a multi-year Medicare agreement with UnitedHealthcare.
Walgreens Boots Alliance, Inc. Price
Walgreens Boots Alliance, Inc. price | Walgreens Boots Alliance, Inc. Quote
On the flip side, although Walgreens witnessed solid demand for Retail Pharmacy & Pharmaceutical Wholesale products, the coronavirus-led market rout impacted its guidance. Given so many rapidly-changing variables related to the pandemic, it is currently difficult to gauge its impact on the company. Hence, Walgreens refrained from updating its fiscal guidance for now. The company aims to update the fiscal guidance on its next earnings call.
Further, the year-over-year decline in adjusted earnings is concerning. Challenging market conditions, particularly in retail, have been inducing sluggishness in the Retail Pharmacy International division. Tough market conditions, particularly in retail, and a tough competitive landscape are other headwinds for the company.
Over the past six months, shares of the company have underperformed its industry. The stock has lost 22.4% compared with the broader industry’s fall of 10.9%.
Key Picks
Some better-ranked stocks from the broader medical space are ResMed Inc. (RMD - Free Report) , National Vision Holdings, Inc. (EYE - Free Report) and Phibro Animal Health Corporation (PAHC - Free Report) .
ResMed has a projected long-term earnings growth rate of 14.4%. It currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
National Vision’s long-term earnings growth rate is estimated at 10.7%. The company presently has a Zacks Rank #2.
Phibro’s long-term earnings growth rate is estimated at 2.1%. It currently carries a Zacks Rank #2.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
See these 7 breakthrough stocks now>>