Important note

This AI stock analysis for Walgreens is not up to date. Creating and accessing our AI stock Analysis (powered by our data and Chat GPT) is only available for our premium users. Sign up to get access today!

Walgreens - AI Stock Analysis

Analysis generated March 27, 2025

Walgreens Boots Alliance, Inc. (WBA) is a global leader in retail and wholesale pharmacy, serving millions of customers and patients every day. The company helps people across the world lead healthier and happier lives. Walgreens operates one of the largest global pharmaceutical supply chains, and it encompasses retail pharmacy operations in the United States, retail pharmacy international, pharmacy and retail wholesale solutions, and its strategic partnerships.

Fundamental Analysis

Revenue for the last quarter stood at $39.5 billion, a 3.05% increase from the previous quarter and a 7.46% increase year over year. These figures indicate positive revenue growth, suggesting that Walgreens is successfully driving sales even in challenging market conditions.

Net income for the last quarter was reported at $265 million, a sharp increase of 91.18% from the prior quarter. However, comparing it to the same quarter last year, there is a decrease of 295.52%, raising concerns about profitability and one-time expenses affecting net income.

EBITDA for the last quarter came in at $192 million, marking an impressive 174.13% increase quarter over quarter. However, there is also a decrease of 60.98% year over year, indicating certain underlying operational inefficiencies or increased costs needing attention.

Walgreens' current Price to Earnings (P/E) ratio is 27.42. A high P/E ratio could indicate an overvaluation, which might point to investor expectations being priced into the stock, and a potentially bearish outlook.

Technical Analysis

Today's stock price for Walgreens is $11.16, reflecting a decrease of 0.62% compared to a month ago. Over the past year, the stock price has decreased by 45.02%, which might concern long-term investors about the company's performance and market sentiment.

The trend for Walgreens' stock is bearish. The Simple Moving Average (SMA10) is currently 11.13, down from the previous SMA10 of 11.14, indicating a downward trend in price movement.

The Relative Strength Index (RSI) stands at 14.3, suggesting that the stock is potentially oversold and may experience a bullish condition soon as the market corrects itself.

Alternative Data Analysis

Analyzing job postings and employee sentiment, Walgreens has 11,464 open positions, reflecting a 20% decrease in the last couple of months. This suggests an attempt to improve margins or reduce costs amidst less favorable market conditions.

Just 30% of employees have a positive business outlook at Walgreens, which is a concerning sign and indicates potential issues regarding employee morale and confidence in the company's future.

Walgreens attracts approximately 59 million visitors to its website without notable changes recently. Despite this stable traffic, mobile app downloads have declined by 10% to an estimate of 8,500 daily, reflecting potential customer disengagement.

On social media, Walgreens has 380,000 Instagram followers, and 780,000 Twitter followers, with a 1% decline in followers over the last few months, reflecting shrinking customer engagement and interest.

AltIndex’s AI score assigns Walgreens a score of 33, signaling a "sell" recommendation based on comprehensive analysis of fundamental, technical, and alternative data.

Conclusion

In conclusion, while Walgreens shows positive top-line growth and impressive quarter-over-quarter profitability improvement, significant challenges exist, including declining year-over-year net income and EBITDA, and concerns over stock price performance. The bearish technical indicators and unenthusiastic alternative data further substantiate a cautious approach. Current sentiments among employees and reduced customer engagement also highlight ongoing structural concerns.

Considering these factors, although there are areas of strength in Walgreens' performance, the current overall outlook suggests potential investors exercise caution. For those holding the stock, a closer examination of the mentioned metrics and market movements is advised to make an informed decision.

Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.