Walgreens (WBA, $36.87) beats fiscal Q4 earnings expectations
Walgreens Boots Alliance reported fourth quarter earnings that exceeded expectations.
The pharmaceutical distribution company’s adjusted profits for the three months ending in September, came in at $1.02 per share, falling -28.7% year-over-year, but six cents above the Street consensus expectation.
Revenues climbed +2.3% year-over-year to $34.7 billion, edging past analysts' estimates of $34.37 billion.
The company’s comparable U.S. store sales for retail pharmacy business grew +3.6%.
According to Walgreens, adjusted profits for 2021 should grow in the "low single-digit' percentage range, although the first half of the year will be adversely affected by the coronavirus pandemic.
According to Tickeron, Momentum Indicator for WBA turns negative, indicating new downward trend
WBA saw its Momentum Indicator move below the 0 level on October 14, 2020. This is an indication that the stock could be shifting in to a new downward move. Traders may want to consider selling the stock or exploring put options. Tickeron's A.I.dvisor looked at 89 similar instances where the indicator turned negative. In 62 of the 89 cases, the stock moved further down in the following days. The odds of a decline are at 70%.
Current price $36.87 is below $36.89 the lowest support line found by A.I. Throughout the month of 09/14/20 - 10/14/20, the price experienced a +2% Uptrend, while the week of 10/07/20 - 10/14/20 shows a -2% Downtrend.
Technical Analysis (Indicators)
Bearish Trend Analysis
The Stochastic Indicator may be shifting from an upward trend to a downward trend. In 34 of 59 cases where WBA's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are 58%.
WBA moved below its 50-day Moving Average on August 17, 2020 date and that indicates a change from an upward trend to a downward trend.
The 10-day Moving Average for WBA crossed bearishly below the 50-day moving average on August 21, 2020. This indicates that the trend has shifted lower and could be considered a sell signal. In 9 of 18 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are 50%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where Apple declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 63%.
WBA broke above its upper Bollinger Band on October 08, 2020. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Bullish Trend Analysis
The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where WBA's RSI Indicator exited the oversold zone, 15 of 30 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 50%.
The Moving Average Convergence Divergence (MACD) for WBA just turned positive on September 17, 2020. Looking at past instances where WBA's MACD turned positive, the stock continued to rise in 31 of 49 cases over the following month. The odds of a continued upward trend are 63%.
Following a +3.12% 3-day Advance, the price is estimated to grow further. Considering data from situations where WBA advanced for three days, in 161 of 319 cases, the price rose further within the following month. The odds of a continued upward trend are 50%.
The Aroon Indicator entered an Uptrend today. In 99 of 180 cases where WBA Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 55%.
Fundamental Analysis (Ratings)
Tickeron has a positive outlook on this ticker and predicts a further increase by more than 4.00% within the next month with a likelihood of 70%. During the last month, the daily ratio of advancing to declining volumes was 1 to 1.36.
The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. WBA’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 92, placing this stock worse than average.
The Tickeron Price Growth Rating for this company is 63 (best 1 - 100 worst), indicating fairly steady price growth. WBA’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is 18 (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of 6 (best 1 - 100 worst) indicates that the company is seriously undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.51) is normal, around the industry mean (2.67). P/E Ratio (44.03) is within average values for comparable stocks, (40.28). Projected Growth (PEG Ratio) (0.51) is also within normal values, averaging (0.72). Dividend Yield (3.47) settles around the average of (1.65) among similar stocks. P/S Ratio (0.27) is also within normal values, averaging (0.67).
The Tickeron PE Growth Rating for this company is 6 (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
WBA's RSI Indicator ascends from oversold territory
The RSI Indicator for WBA moved out of oversold territory on September 26, 2024. This could be a sign that the stock is shifting from a downward trend to an upward trend. Traders may want to buy the stock or call options. The A.I.dvisor looked at 43 similar instances when the indicator left oversold territory. In of the 43 cases the stock moved higher. This puts the odds of a move higher at .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 65 cases where WBA's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Momentum Indicator moved above the 0 level on October 04, 2024. You may want to consider a long position or call options on WBA as a result. In of 98 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for WBA just turned positive on September 12, 2024. Looking at past instances where WBA's MACD turned positive, the stock continued to rise in of 50 cases over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where WBA advanced for three days, in of 264 cases, the price rose further within the following month. The odds of a continued upward trend are .
WBA may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Bearish Trend Analysis
Following a 3-day decline, the stock is projected to fall further. Considering past instances where WBA declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Aroon Indicator for WBA entered a downward trend on October 04, 2024. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
Tickeron has a negative outlook on this ticker and predicts a further decline by more than 4.00% within the next month with a likelihood of 81%.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is seriously undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.250) is normal, around the industry mean (5.704). P/E Ratio (32.848) is within average values for comparable stocks, (172.042). Projected Growth (PEG Ratio) (2.170) is also within normal values, averaging (1.915). Dividend Yield (0.086) settles around the average of (0.050) among similar stocks. P/S Ratio (0.117) is also within normal values, averaging (0.765).
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. WBA’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. WBA’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 94, placing this stock worse than average.
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General Information
a provider of drug store services
Industry DrugstoreChains