Is Walgreens a Buy?
Walgreens Boots Alliance (NASDAQ: WBA) operates neighborhood retail pharmacies across the country. It has played an important role in helping millions of people get vaccinated, and the company is expanding its operations, diving deeper into healthcare. It also provides investors with a solid dividend, one that has been growing over the years.
But despite all these positives, the stock has been struggling. It's down more than 40% in five years while investors who took the safe approach and invested in the S&P 500 would have been up around 50% over the same stretch. Is this an underdog stock that could outperform in the future, or is Walgreens too risky of a buy, even at its drastically reduced valuation?
A good place to start when assessing a company's business is by looking at its gross margin to see how much of revenue is left after cost of goods sold. For Walgreens, it doesn't paint a pretty picture.
Source Fool.com
