Does This Provide a Reason to Sell Walgreens Boots Alliance, Inc. (WBA)? The Stock Has Formed Bearish Wedge Down Pattern

June 20, 2018 - By Hannah Black

Walgreens Boots Alliance, Inc. (NASDAQ:WBA) Logo

The stock of Walgreens Boots Alliance, Inc. (WBA) formed a down wedge with $62.56 target or 8.00 % below today’s $68.00 share price. The 8 months wedge indicates high risk for the $67.43 billion company. If the $62.56 price target is reached, the company will be worth $5.39 billion less.
Falling wedges are poor performers for bullish breakouts and are tricky moments to trade. Investors must be aware that the break even failure rate for up or down breakouts is: 11% and 15%. The average rise is 32% and the decline is 15%. The falling wedges has high throwback and pullback rate: 56%, 69% and the percent of wedges meeting target is not very high.

The stock increased 5.25% or $3.39 during the last trading session, reaching $68. About 13.38 million shares traded or 152.31% up from the average. Walgreens Boots Alliance, Inc. (NASDAQ:WBA) has declined 21.33% since June 21, 2017 and is downtrending. It has underperformed by 33.90% the S&P500.

Analysts await Walgreens Boots Alliance, Inc. (NASDAQ:WBA) to report earnings on June, 28 before the open. They expect $1.48 earnings per share, up 11.28 % or $0.15 from last year’s $1.33 per share. WBA’s profit will be $1.47 billion for 11.49 P/E if the $1.48 EPS becomes a reality. After $1.73 actual earnings per share reported by Walgreens Boots Alliance, Inc. for the previous quarter, Wall Street now forecasts -14.45 % negative EPS growth.

Walgreens Boots Alliance, Inc. (NASDAQ:WBA) Ratings Coverage

Among 12 analysts covering Walgreens Boots Alliance (NASDAQ:WBA), 8 have Buy rating, 0 Sell and 4 Hold. Therefore 67% are positive. Walgreens Boots Alliance had 13 analyst reports since January 5, 2018 according to SRatingsIntel. RBC Capital Markets maintained the stock with “Buy” rating in Wednesday, March 28 report. Guggenheim maintained Walgreens Boots Alliance, Inc. (NASDAQ:WBA) on Wednesday, March 28 with “Buy” rating. The firm has “Buy” rating given on Thursday, January 4 by Robert W. Baird. The rating was maintained by Mizuho on Wednesday, January 24 with “Buy”. The rating was maintained by Loop Capital Markets on Tuesday, February 13 with “Buy”. The firm has “Buy” rating given on Tuesday, January 9 by Needham. RBC Capital Markets maintained Walgreens Boots Alliance, Inc. (NASDAQ:WBA) rating on Friday, February 16. RBC Capital Markets has “Buy” rating and $94.0 target. Leerink Swann maintained Walgreens Boots Alliance, Inc. (NASDAQ:WBA) on Wednesday, May 23 with “Market Perform” rating. SunTrust maintained it with “Hold” rating and $7000 target in Tuesday, April 17 report. Scotia Capital maintained Walgreens Boots Alliance, Inc. (NASDAQ:WBA) on Monday, April 2 with “Buy” rating.

More notable recent Walgreens Boots Alliance, Inc. (NASDAQ:WBA) news were published by: 247Wallst.com which released: “Travelers, McDonalds Weigh on the Dow Wednesday” on June 20, 2018, also Marketwatch.com with their article: “Nasdaq notches record; Dow extends losing streak to 7 days” published on June 20, 2018, Benzinga.com published: “Benzinga Pro’s 5 Stocks To Watch Today” on June 20, 2018. More interesting news about Walgreens Boots Alliance, Inc. (NASDAQ:WBA) were released by: Seekingalpha.com and their article: “Walgreens: Not As Cheap As You Think” published on June 20, 2018 as well as Seekingalpha.com‘s news article titled: “Billion Dollar Unicorns: Cornerstone OnDemand Faces Intense Competition” with publication date: June 20, 2018.

Walgreens Boots Alliance, Inc. operates as a pharmacy-led health and wellbeing company. The company has market cap of $67.43 billion. It operates through three divisions: Retail Pharmacy USA, Retail Pharmacy International, and Pharmaceutical Wholesale. It has a 17.05 P/E ratio. The Retail Pharmacy USA segment sells prescription drugs and an assortment of general merchandise, including non-prescription drugs, beauty products, photo finishing, seasonal merchandise, greeting cards, and convenience foods through its retail drugstores and convenient care clinics.

Walgreens Boots Alliance, Inc. (NASDAQ:WBA) Ratings Chart

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