Is It Too Late To Buy Walgreens Boots Alliance Inc (NASDAQ:WBA)?
Walgreens Boots Alliance Inc (NASDAQ:WBA) received a lot of attention from a substantial price movement on the NasdaqGS over the last few months, increasing to $70.6 at one point, and dropping to the lows of $62.23. This high level of volatility gives investors the opportunity to enter into the stock, and potentially buy at an artificially low price. A question to answer is whether Walgreens Boots Alliance’s current trading price of $64.34 reflective of the actual value of the large-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Walgreens Boots Alliance’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change. View our latest analysis for Walgreens Boots Alliance
Is Walgreens Boots Alliance still cheap?
Great news for investors – Walgreens Boots Alliance is still trading at a fairly cheap price. According to my valuation, the intrinsic value for the stock is $99.81, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. However, given that Walgreens Boots Alliance’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us another chance to buy in the future. This is based on its high beta, which is a good indicator for share price volatility.
Can we expect growth from Walgreens Boots Alliance?
Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. With profit expected to grow by 57.89% over the next couple of years, the future seems bright for Walgreens Boots Alliance. It looks like higher cash flows is on the cards for the stock, which should feed into a higher share valuation.
What this means for you:
Are you a shareholder? Since WBA is currently undervalued, it may be a great time to accumulate more of your holdings in the stock. With an optimistic outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as financial health to consider, which could explain the current undervaluation.
Are you a potential investor? If you’ve been keeping an eye on WBA for a while, now might be the time to make a leap. Its buoyant future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy WBA. But before you make any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed investment decision.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Walgreens Boots Alliance. You can find everything you need to know about Walgreens Boots Alliance in the latest infographic research report. If you are no longer interested in Walgreens Boots Alliance, you can use our free platform to see my list of over 50 other stocks with a high growth potential.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.
