Should You Invest in Walgreens Boots Alliance?

PHOTO CREDIT: Walgreens Boots Alliance

OVERVIEW

Why You Should?

  1. Walgreens has continuously innovated their products to gain a customer base. For example, they have partnerships with Microsoft and Adobe to improve their e-commerce platforms. They have also innovated their store-fronts by modernizing them and adding new features to different stores. This will positively benefit the company in the future.
  2. Walgreens has grown its e-commerce and in-store sales over the past couple of financial years. Though these numbers are flattening, they acquired Rite Aid Stores which was one of their largest competitors. This will benefit the company in the future.
  3. Walgreens has seen rising revenues over the past couple of financial years. This has benefited the company’s future growth plans and will help them build a stronger balance sheet. In the financial year of 2019, the company reported revenues of around 136.9 billion and profits of around 4 billion. In the financial year of 2018, the company reported lower revenues of around 131.5 billion but reported profits at around 5 billion. This drop in profits during the latest financial year was caused due to a combination of restructuring and acquisitions.

Why You Should Not?

  1. The reason why I am staying away from Walgreens is because of competition. Amazon and other e-commerce stores as well as Walmart, Costco, Target, and CVS are expanding into the healthcare space. All of these companies have serious potential to drive Walgreens further into the ground. If you want a healthcare/pharmaceutical play, invest your money elsewhere.
  2. Because of these factors, the stock has underperformed the market over the past couple of years. Until they start to perform with the market again, I will not put any money into the stock.

MY OPINION

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Aaditya Patel is a writer who publishes analysis on companies publicly traded on the NYSE. Follow him @the_investing787 on Instagram for summary posts.

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Aaditya Patel

Aaditya Patel is a writer who publishes analysis on companies publicly traded on the NYSE. Follow him @the_investing787 on Instagram for summary posts.