Dow stock WBA could be a bounce-back candidate in 2024
Every day for the next three weeks, we're going to highlight one of Schaeffer's top 12 picks for 2024. Next up, we have pharmacy stock Walgreens Boots Alliance Inc (NASDAQ:WBA) . To access the entirety of the 2024 report, click here.
Drugstore megacorporation Walgreens Boots Alliance (WBA) took the title as the worst performing Dow stock for 2023, but may be the perfect pick for contrarians, as it now sports a dividend yield of 9.4%. This should be attractive in the new year for traders, as well the equity is also discussing a potential initial public offering (IPO) spinoff for its U.K.-based pharmacy chain, Boots, on London's FTSE 100 Index.
The shares are rebounding from 2008 Great Recession lows, now bouncing off support at the $20 mark and taking out former short-term highs near $25. WBA has also broken above two trendlines; the 50-day and 128-day moving averages, both of which acted as resistance and/or a cap for the stock for most of 2023.
Short interest has dropped more than 8% in recent weeks and now accounts for 6.7% of the stock's total available float. This suggests the start of an unwinding trend, while the slew of analyst bear notes encasing the security leaves ample room for upgrades in the coming months.
