Walgreens Eyes Worst Month in Years After Earnings

The blue chip just launched a major cost-cutting plan

Digital Content Manager
Dec 20, 2018 at 10:19 AM
facebook X logo linkedin


Shares of Walgreens Boots Alliance Inc (NASDAQ: WBA) are down 3.3% to trade at $70.60 this morning, despite reporting quarterly adjusted earnings that beat analysts' expectations. Traders are apparently reacting to a steeper-than-expected drop in same-store sales, and the pharmacy giant announced plans to cut more than $1 billion in costs over the next three years.

The month of December has been brutal for the blue chip, with WBA down 16.1% so far -- pacing for its worst month since June 2010. The equity is on pace for a sixth straight loss, and has dipped below its year-to-date breakeven of $72.62 today.  Now, the shares are testing their footing atop the 160-day moving average. 

Analysts have reservations about the pharmacy giant. Only four analysts give WBA a "buy" or better rating, while 12 slapped it with a tepid "hold." Goldman Sachs, meanwhile, recently downgraded the Dow stock to "sell." Meanwhile, the consensus 12-month price target of $78.57 represents just a 7.2% premium to current levels. 

Traders are jumping on the bearish bandwagon, too. Short interest is up 8.6% in the past two reporting periods, and WBA's Schaeffer's put/call open interest ratio (SOIR) of 1.12 sits in the 99th percentile of its annual range -- indicating that short term options players have rarely been more put-heavy in the past year. 

 

 

 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI