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."
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.
Sign up for Kiplinger’s Free 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
-
Stocks Swing in Volatile Session: Stock Market TodayThe main indexes fell sharply in early trading on rising China tensions, but rebounded thanks to encouraging bank earnings.
-
Don't Miss Out! A Quiz on Medicare Enrollment DeadlinesQuiz Test your basic knowledge of Medicare enrollment periods in our quick quiz.
-
Stocks Swing in Volatile Session: Stock Market Today
The main indexes fell sharply in early trading on rising China tensions, but rebounded thanks to encouraging bank earnings.
-
A 'Fast, Fair and Friendly' Fail: Farmers Irks Customers With Its Handling of a Data BreachFarmers Insurance is facing negative attention and lawsuits because of a three-month delay in notifying 1.1 million policyholders about a data breach. Here's what you can do if you're affected.
-
Serving the HNW Market: How Financial Advisers Can Break Through and Deliver Lasting ValueFinancial advisers have a significant opportunity to serve high-net-worth clients by elevating their capabilities, delivering comprehensive planning, building diverse teams and prioritizing family wealth education.
-
Don't Just Sell, Connect: How Financial Advisers Can Ignite Their Sales GrowthAvoid complacency and embrace small, consistent improvements to optimize your sales process and results.
-
Dow Adds 587 Points as Stocks Bounce: Stock Market TodayThe main indexes rebounded sharply Monday after President Trump took a calmer stance toward China.
-
Are You a Small Business Owner Buckling Under Economic Pressure? Here's How You Can CopeSignificant emotional and financial challenges, including tariff worries, are piling up on small business leaders. Here's how leaders can develop more healthy coping strategies and systems of support.
-
To Raise Prices or Not to Raise Prices: Tariff Tips for Small BusinessesSmall businesses are making critical decisions. Should they pass on higher costs due to tariffs, or would that only cost them more in lost customers?
-
Five Retirement Planning Traps You Can't Afford to Fall Into, From a Wealth AdviserTo help ensure you reach your savings goals and enjoy financial security in your golden years, be aware of these common pitfalls. The key is to be proactive, informed and flexible.
