New Lifetime High For Walgreens Boots Alliance (WBA)
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer.
Trade-Ideas LLC identified
(
) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Walgreens Boots Alliance as such a stock due to the following factors:
- WBA has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $383.5 million.
- WBA has traded 145,138 shares today.
- WBA is trading at a new lifetime high.
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More details on WBA:
Walgreens Boots Alliance, Inc., together with its subsidiaries, operates a network of drugstores in the United States. It provides consumer goods and services, pharmacy, and health and wellness services through drugstores, as well as through mail, and by telephone and online. The stock currently has a dividend yield of 1.6%. WBA has a PE ratio of 38.7. Currently there are 9 analysts that rate Walgreens Boots Alliance a buy, no analysts rate it a sell, and 9 rate it a hold.
The average volume for Walgreens Boots Alliance has been 4.7 million shares per day over the past 30 days. Walgreens Boots Alliance has a market cap of $78.0 billion and is part of the services sector and retail industry. The stock has a beta of 1.63 and a short float of 1.2% with 2.22 days to cover. Shares are up 10.6% year-to-date as of the close of trading on Thursday.
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Analysis:
rates Walgreens Boots Alliance as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income, good cash flow from operations, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.
Highlights from the ratings report include:
- WBA's revenue growth has slightly outpaced the industry average of 0.2%. Since the same quarter one year prior, revenues slightly increased by 6.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Food & Staples Retailing industry average. The net income increased by 16.4% when compared to the same quarter one year prior, going from $695.00 million to $809.00 million.
- Net operating cash flow has significantly increased by 675.18% to $1,031.00 million when compared to the same quarter last year. In addition, WALGREENS BOOTS ALLIANCE INC has also vastly surpassed the industry average cash flow growth rate of 33.89%.
- WBA's debt-to-equity ratio of 0.73 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Despite the fact that WBA's debt-to-equity ratio is mixed in its results, the company's quick ratio of 1.66 is high and demonstrates strong liquidity.
- Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 25.87% over the past year, a rise that has exceeded that of the S&P 500 Index. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.
- You can view the full Walgreens Boots Alliance Ratings Report.
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