Shares of Walgreen (WAG) are plummeting in early market trading after the company decided to avoid tax inversion and abandoned its plans to move overseas .
Why walgreens stock went down today?
NEW YORK (The. Street) — Shares of Walgreen Co. (WAG) are down 0.15% to $60.18 today as the company battles with a defamation lawsuit by former CFO Wade Miquelon, and as the retail drugstore chain is struggling with disappointing earnings, activist hedge funds and a major tax inversion deal, the Wall Street Journal reports.
Why is Walgreens’s share price falling?
This can be attributed to investors revising their expectation for future earnings growth from Walgreens downward. Walgreens is seeing stiff competition for its UK business , and it has closed over 40 stores over the recent years.
Then, should you sell Walgreens stock?
That said, the selling in Walgreens stock appears to be overdone. The company is working toward cost management and aims to reduce the costs by $2 billion annually by 2022, which will translate into margin expansion. Given that the stock is trading at a very low valuation, it may interest investors who are willing to be patient.
Is Walgreens Boots Alliance’s stock down 50% since 2016?
Walgreens Boot Alliance Inc. reported better than expected third quarter profits with net earnings of $1.3 billion, or $1.18 per share, compared to $714 million, or $0.74 per share one year ago. (Photo by Justin Sullivan/Getty Images) The stock price of Walgreens Boots Alliance (NYSE: WBA) has seen a decline of roughly 50% since the end of 2016.
This underperformance can partly be attributed to investor concerns over Amazon’s entry into online pharmacy, that is likely to result in market share loss for pharmacies, such as Walgreens and CVS Health. WBA stock is also down 31% from levels of around $69 seen toward the end of 2018.
The stock price of Walgreens Boots Alliance (NASDAQ: WBA) has seen a 5% drop over the last five trading days, and we believe that the stock will underperform the broader markets in the near term. Much of the recent decline came on May 26, after reports of Amazon (NASDAQ: AMZN) eyeing brick and mortar pharmacy stores.
Walgreens Boots Alliance, Inc. is currently listed on NASDAQ under WBA. One share of WBA stock can currently be purchased for approximately $ 45.90. Is Walgreens Boots Alliance, Inc. (WBA) overvalued or undervalued? Walgreens Boots Alliance, Inc.’s current P/E Non-GAAP (TTM) sector relative grade is A+.
What’s happening to Walgreens’margins?
Of late, increased reimbursement pressure and generic drug cost inflation have been hampering Walgreens Boots‘ (WBA) margins significantly.
Still, Walgreens pledged to accelerate its existing cost-reduction and business-transformation initiatives, and boosted its annual cost savings goal by $500 million, to $1.5 billion by fiscal 2022.