Down 36% YTD Walgreens Stock Looks Attractive At Current Levels

Down 36% YTD Walgreens Stock Looks Attractive At Current Levels

SAN FRANCISCO, CA - JULY 09: A woman sits in a bus shelter outside of a Walgreens store on July 9, ... [+] 2015 in San Francisco, California. Walgreens Boot Alliance Inc. reported better than expected third quarter profits with net earnings of $1.3 billion, or $1.18 per share, compared to $714 million, or $0.74 per share one year ago. (Photo by Justin Sullivan/Getty Images)



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We believe that Walgreens Boots Alliance stock (NASDAQ: WBA) may be a good buying opportunity at the present time. WBA stock trades near $38 currently and it is, in fact, down 36% so far this year (from $59 at the beginning of 2020). It traded at $44 in late March 2020 – when the markets made a bottom – and is currently 13% below that level as well. This marks a significant underperformance compared to the broader markets, with the S&P 500 rallying 60% since its March lows, and the index is now up 9% thus far in 2020. This underperformance can partly be attributed to news of Amazon's entry as an online pharmacy. Walgreens has already been struggling with its UK business due to stiff competition