Walgreens Boots Alliance: The Right Stock for an Age of Uncertainty

You can't rely on the "experts," in politics, the stock market or anywhere else. The only way to ensure you'll have enough money to retire is to use a system that has a proven track record of delivering profits over the long haul.

Case in point: Just two weeks ago, many Washington pundits were already talking about Donald Trump's presidential candidacy in the past tense. But now Trump is enjoying a resurgence in the polls, and the experts are scrambling to revise their forecasts.

If Trump wins the presidency, it will be the most shocking demolition of the conventional wisdom in many decades. No one knows how the markets will react -- not just in the U.S., but around the world. The short-term response will almost surely be negative, and could be possibly be extremely negative, given how the markets dread uncertainty. The more Trump's numbers rise, the more the S&P 500 falls. It's down about 3% in just a couple of weeks.

In an age of uncertainty, are there any ways to invest your money securely, but still achieve the growth you will need? Certain trends will continue, no matter who is sitting behind the desk in the Oval Office. One of them is the aging of the U.S. population, as the biggest chunk of the baby boomers approach retirement age. Another is the remarkable advances in medical care, especially in the field of prescription drugs.

Walgreens Boots Alliance (WBA) is as well positioned as any company to profit from these trends. Its earnings surpassed $1 billion during the fourth quarter, beating Wall Street expectations by a big margin. It is now 19th on the Fortune 500 list of America's biggest companies.

The drugstore giant is on the verge of closing its latest megadeal within the next several months, one that will reshape its industry. It is planning to wrap up its $9.4 billion purchase of rival Rite Aid by early next year.

Walgreens revealed plans to buy Rite Aid, the nation's third-largest drugstore chain, about one year ago, a merger that will create a chain with about 12,000 U.S. locations. That is several thousand more than its closest competitor, CVS Health.

Walgreens Boots Alliance is a holding in Jim Cramer's Action Alerts PLUS Charitable Trust Portfolio. See how Cramer rates the stock here. Want to be alerted before Cramer buys or sells WBA? Learn more now.

The combination also would give Walgreens added negotiating muscle with drugmakers such as Pfizer, Bristol-Myers Squibb and GlaxoSmithKline.

The proposal is still being reviewed by federal regulators on antitrust grounds, which has caused some investors to be wary of the stock. But it is likely to go through. A Donald Trump Justice Department is unlikely to block it, and even a Democratic administration may have bigger fish to fry, such as the AT&T and Time Warner's impending marriage.

There has been a decline of brand name prescription drugs in favor of generics. That's good news for pharmacy chains like Walgreens, which typically earn larger profit margins on the generics.

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So even today, there are still ways to get both growth and security. Imagine if you had a method that would GUARANTEE that you will make money on at least 85% of your trades! You can, if you read our special report. Click here now for a free copy.

Tom Scarlett is an independent contributor who at the time of publication owned none of the stocks mentioned.

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