Yahoo Finance Should You Think About Buying Walgreens Boots Alliance, Inc. (NASDAQ:WBA) Now?
Today we're going to take a look at the well-established Walgreens Boots Alliance, Inc. (NASDAQ:WBA). The company's stock saw a double-digit share price rise of over 10% in the past couple of months on the NASDAQGS. With many analysts covering the large-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. However, could the stock still be trading at a relatively cheap price? Let’s take a look at Walgreens Boots Alliance’s outlook and value based on the most recent financial data to see if the opportunity still exists.
View our latest analysis for Walgreens Boots Alliance
What's the opportunity in Walgreens Boots Alliance?
Great news for investors – Walgreens Boots Alliance is still trading at a fairly cheap price. I’ve used the price-to-earnings ratio in this instance because there’s not enough visibility to forecast its cash flows. The stock’s ratio of 13.79x is currently well-below the industry average of 23.04x, meaning that it is trading at a cheaper price relative to its peers. Walgreens Boots Alliance’s share price also seems relatively stable compared to the rest of the market, as indicated by its low beta. If you believe the share price should eventually reach its true value, a low beta could suggest it is unlikely to rapidly do so anytime soon, and once it’s there, it may be hard to fall back down into an attractive buying range.
Can we expect growth from Walgreens Boots Alliance?
Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. However, with a relatively muted profit growth of 4.0% expected over the next couple of years, growth doesn’t seem like a key driver for a buy decision for Walgreens Boots Alliance, at least in the short term.
What this means for you:
Are you a shareholder? Even though growth is relatively muted, since WBA is currently undervalued, it may be a great time to increase your holdings in the stock. However, there are also other factors such as capital structure to consider, which could explain the current undervaluation.
Are you a potential investor? If you’ve been keeping an eye on WBA for a while, now might be the time to make a leap. Its future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy WBA. But before you make any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed investment decision.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Walgreens Boots Alliance. You can find everything you need to know about Walgreens Boots Alliance in the latest infographic research report. If you are no longer interested in Walgreens Boots Alliance, you can use our free platform to see my list of over 50 other stocks with a high growth potential.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.
