Walgreens Boots Alliance (WBA) stock is soaring Friday, up more than 20% to make it the best S&P 500 stock at last check, after the drugstore chain beat top- and bottom-line expectations for its fiscal 2025 first quarter and maintained its full-year profit forecast.
In the three months ended November 30, Walgreens' revenue increased 7.5% year over year to $39.5 billion, driven by growth across all business segments. Its earnings per share (EPS) declined 22.7% from the year-ago period to 51 cents.
"Our first-quarter results reflect our disciplined execution against our 2025 priorities: stabilizing the retail pharmacy by optimizing our footprint, controlling operating costs, improving cash flow and continuing to address reimbursement models," said Walgreens CEO Tim Wentworth in a statement. "While our turnaround will take time, our early progress reinforces our belief in a sustainable, retail pharmacy-led operating model."
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The results handily beat analysts' expectations. Wall Street was anticipating revenue of $37.4 billion and earnings of 37 cents per share, according to CNBC.
Walgreens also maintained its full-year profit forecast, which calls for earnings per share in the range of $1.40 to $1.80.
Is Walgreens stock a buy, sell or hold?
Walgreens' troubles on the price charts have been well-documented. Indeed, heading into Friday's session, sharewere down more than 61% on a year-over-year basis. Unsurprisingly, Wall Street is on the sidelines when it comes to the consumer staples stock.
According to S&P Global Market Intelligence, the average analyst target price for WBA stock is $10.43, representing a discount of nearly 10% to current levels. Meanwhile, the consensus recommendation is Hold.
Financial services firm UBS Global Research is one of those with a Neutral (Hold) rating on the mid-cap stock, along with a $10 price target.
"We believe WBA's fundamentals remain challenged exiting [its] fiscal first quarter," wrote UBS Global Research analyst Kevin Caliendo in a January 5 note. "Pharmacy chain script growth has remained soft, flu season started later than last year, creating a difficult comparison for fiscal Q1, and retailer peers are calling out deal-seeking behavior by consumers and mixed commentary around holiday season sales expectations. However, this reflects more or less a continuation of the status quo over the past nine-plus months."
Related Content
- Earnings Calendar and Analysis for This Week
- Delta Stock Remains a Strong Buy After Earnings
- Amazon to Replace Walgreens in the Dow: Why This Matters
-
The Most Tax-Friendly State for Retirement in 2025: Here It IsRetirement Tax How do you retire ‘tax-free’? This state doesn’t tax retirement income, has a low median property tax bill, and even offers savings on gas. Are you ready for a move?
-
Plan for Higher Health Care Costs in 2026: Projected Medicare Part B and Part D PremiumsIn 2026, Medicare participants will pay more for their health care. Part B costs are expected to rise more than 10%. Here's what you can do.
-
Avoid Medicare's 'Shadow Tax' With This Financial Expert's IRMAA-Busting TipsYou're cruising along in retirement, and then bam: Your Medicare premiums soar because your income crossed the limit. Take a breath. There could be a solution.
-
Grilling Season and ETFs: There's More Than One Way to Cook Up a PortfolioExchange-traded funds come in a multitude of 'flavors' these days, from passive to active to factor-based. Their flexibility is what makes them so delicious.
-
You Don't Want It, But You Should Plan for It Anyway: An Expert Guide to Long-Term CarePlanning for long-term care is crucial to protect your independence, family and financial stability against unexpected health events and rising care costs not covered by standard insurance.
-
Japan Tariffs: 5 Things That Might Get More Expensive for YouPresident Donald Trump's trade agreement with Japan features a 15% reciprocal tariff for all imported products, which could impact the prices of these items when you go shopping.
-
Five Questions to Help Ensure a Happy, Secure RetirementYou need to drill down to what you really want out of retirement. Then you can get down to the business of crafting a financial plan to make it happen.
-
I'm a Financial Adviser: This Is How You Can Save for Big Goals Even if You Feel Like You're Barely Getting ByLearning good financial habits — building an emergency fund, paying down debt, saving consistently — gives you flexibility, options and a path to security.
-
How to Buy an Annuity Online (Without Regret)You should never be rushed into buying an annuity. But now that they can be sold quickly and easily online, you need to be more alert than ever to pushy salesmanship. Here are four signs you're working online with a professional.
-
Dow Dives 542 Points on Soft Jobs Data: Stock Market TodayThe last day of a busy week ends with the first greater-than-1% move in either direction in more than a month.
