2 Reasons to Buy Walgreens Stock, and 1 Reason to Sell
When the market gets rough, it can pay to buy shares of companies that everyone knows aren't about to go anywhere, even if things get worse. And when it comes to those types of businesses, it's especially hard to imagine a world where pharmacies like Walgreens Boots Alliance (NASDAQ: WBA) become irrelevant or unsustainable.
But Walgreens is far from the perfect investment, and its shares have fallen over 40% over the past five years, badly underperforming the market's gain of nearly 76%. Let's examine two arguments in favor of buying it now and one for selling it, so you'll get a stronger sense of how effective of an investment it could be for your goals and needs.
Between inflation and supply chain issues, most retailers have seen their margins compress over the last year, and Walgreens is no exception. Its earnings per share (EPS) from continuing operations crashed by 73% in its fiscal third quarter, hitting $0.33. Still, management's guidance for the 2022 fiscal year hasn't changed despite problems in the economy, even after a weak quarter. In other words, its operating conditions are expected to stabilize or improve enough to make up for the bump in the road.
Source Fool.com
