Walgreens Boots Alliance Is Near Its 10-Year Low: Is It a Bargain or Bust?
Walgreens Boots Alliance (NASDAQ: WBA) is at a crossroads. Its main business isn't generating much growth, and so the company has been pivoting toward healthcare with plans to open hundreds of primary care clinics at its locations over the next few years. Between this new effort and the company's underwhelming recent results, it may not be a huge surprise that the stock is trading near its 10-year low.
Is this a stock that's too cheap to pass up right now, or is it a risky investment that's likely to fall even lower in the years ahead?
A couple of attractive features about Walgreens' stock right now have to do with its incredibly low valuation. At $35, the stock is trading around the levels it was back in 2012. While it has bounced off of its low for the year, this remains an incredibly discounted stock. At around 8 times earnings, the stock is well below the 22 times profits that investors are paying for the average healthcare stock.
Source Fool.com
