|Bid||0.00 x 800|
|Ask||0.00 x 2900|
|Day's Range||8.71 - 9.15|
|52 Week Range||7.36 - 42.40|
|Beta (3Y Monthly)||1.73|
|PE Ratio (TTM)||N/A|
|Earnings Date||Sep 20, 2017 - Sep 25, 2017|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||9.00|
Founded in 1901, Walgreens Boots Alliance WBA is the leading pharmacy retailer, leveraging its scale to provide convenience. The company generates nearly $140 billion in revenue and dispenses over 1 billion prescriptions annually, representing one fourth of the drug market. Scale remains critical in an increasingly competitive market that has witnessed some rationalization of subscale peers.
With the highest rate of measles cases being reported in the United States since the disease was declared eliminated in 2000, Rite Aid announced today that Measles-Mumps-Rubella (MMR) vaccinations are available upon request at Rite Aid pharmacies across Maryland. No appointment is necessary and vaccinations from a Rite Aid certified immunizing pharmacist are available during normal pharmacy business hours. There are currently five confirmed cases of measles, in Maryland, as well numerous sites that have been identified for potential exposure according to the Maryland Department of Health.
Thrifty Ice Cream Now Available in Idaho, Oregon and Washington in 48-ounce Containers and Up to Eight Flavors
Rite Aid (RAD) reported earnings 30 days ago. What's next for the stock? We take a look at earnings estimates for some clues.
If you follow social media, you'll see a ton of people calling CVS Health (NYSE:CVS) a compelling bargain right now. The stock sells for just over book value, 7.6x forward earnings, and offers a more than 3.5% dividend yield. For investors in the Peter Lynch "buy what you know" school of investing, CVS stock seems appealing. A respected company with omnipresent stores across the country selling at a deeply discounted valuation. So what's not to like?Source: Mike Mozart via FlickrThere are a few reasons for caution on CVS stock, despite the apparent positives. For one, the company has become far more than a pharmacy chain. And in its numerous acquisitions, it has loaded the company up with debt and risk.For another, the company's profit margins are under fire on many sides. The stock market isn't being unreasonable in pricing CVS stock for a series of difficult years ahead.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Great Stocks to Buy on Dips Dangerous Empire-BuildingI was never a fan of CVS' move into the pharmacy benefit manager (PBM) space. It may feel quite closely related to the main business; a PBM manages prescription benefits for self-insured companies, government organizations and other such entities that don't use a major health insurance operator. CVS could certainly achieve cost savings by fusing these two operations together, right?In practice, though, they are quite separate businesses. Dealing with private companies and Medicare is much different than running its pharmacies and walk-in clinics. As it would so happen, both retail pharmacy and PBMs have been struggling over the past few years, so CVS' diversification did little to alter its trajectory as compared with Walgreens Boots Alliance (NYSE:WBA).That said, CVS recently went all-in on becoming a one-stop health care destination. It made a gigantic $68 billion deal for health insurer Aetna. This was reportedly a defensive move, as Aetna itself was a major client of CVS' PBM. Buying them kept that business in-house rather than risking defection; it also took one major M&A target off the market. This was viewed as an important move to try to keep Amazon (NASDAQ:AMZN) from potentially entering the industry.Now, with the Aetna deal closed, CVS controls a significant chunk of the whole health care supply chain, from a walk-in flu shot on up through drug dispensing, Medicare management, and private health insurance. Deals Don't Inspire ConfidenceUnfortunately, this health care colossus faces a number of challenges. For one, management is showing questionable judgment. Its $12.7 billion acquisition of Omnicare in 2015 has already led to more than $6 billion in write-offs. CVS both misread that market in long-term care and also overestimated how many synergies there would be in the deal.This is problematic, since a large number of analysts believe CVS overpaid for Aetna. They offered a sizable premium to a stock that was already trading at all-time highs and was up exponentially heading into the deal. Aetna stock traded in the $20s a decade ago; CVS paid more than $200 per share.Interestingly, between 1977 and 2000, Aetna stock created only modest value for its shareholders. In a normal health care market, a health insurance firm should not spike in value nearly 10-fold inside of a decade. If you want to see why health care costs are soaring, the PBMs and the health insurers are a great place to look. Political Risk LoomsRecently, we've see a huge blame the other person game going on with health care costs. The drug companies say prescription pills are expensive because the PBMs and health insurers are overcharging everyone, taking way too much of a cut as middlemen. The health insurers are blaming the PBMs for overcharging them. The PBMs, in turn, have been blaming the pharmacies.This has been a profitable game for the past decade, everyone inflating costs while blaming someone else, but it won't and can't go on much longer. The health care system is simply too expensive for this sort of activity to drag on indefinitely.CVS is again promising huge synergies with the Aetna deal, but they won't get them. CVS is essentially competing against itself here in a way, as you have the entities that were all sticking each other with excessive costs now under one roof. With only CVS standing between the pharmaceutical company and the end patient, it will be far harder for CVS to wring so-called excessive profits out of this system.You see analysts expecting profit margins (which are already trending well downward) to continue dropping for both retail pharmacy and PBMs. Perhaps CVS felt compelled to buy Aetna as the health insurers are still doing better for the time being. These sorts of gains can't keep up if Medicare is going to remain solvent. Unfortunately for CVS, they top-ticked the market buying Aetna for an absurd price.Already shares of other health insurers have plummeted this year, with UnitedHealth (NYSE:UNH) and Humana (NYSE:HUM) both dropping around 30% since December.This fall has coincided with the rise of anti-private health insurance candidates such as Bernie Sanders for the 2020 presidential election. Health insurance costs will be a major campaign issue, and CVS has launched itself into the crossfire by paying up for Aetna. CVS Stock VerdictAs I mentioned, it's easy to make a case that CVS stock is cheap on valuation. However, there are several things to take into account before hitting the buy button. For one, CVS has a huge debt load post-Aetna, with its $70 billion debt just about equal to the company's market cap. The company's earnings will need to be channeled in large part to managing its debt rather than dividend hikes or share buybacks for the time being.Additionally, nearly all segments of the business are struggling. Retail pharmacy has issues, as results from Walgreens and Rite Aid (NYSE:RAD) have confirmed. PBMs have been weak in recent years, and now Aetna is at risk as the politicians threaten to regulate profits from that sector sharply lower or outlaw big chunks of the business entirely.Finally, CVS' management has not shown good discipline in dealmaking, first with the disastrous Omnicare deal and now this most questionable Aetna one. With the health care industry passing through such trying times, CVS stock is an easy avoid for the time being.At the time of this writing, Ian Bezek owned WBA stock. You can reach him on Twitter at @irbezek. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Great Stocks to Buy on Dips * 6 Growth Stocks to Buy for the Rest of 2019 * 4 Mega-Cap Stocks to Sell Before They Melt Down Compare Brokers The post CVS Stock Might Look Cheap, but It Is a Value Trap appeared first on InvestorPlace.
Walmart outlined steps to prevent minors from buying tobacco products in a letter to the FDA.
Lockheed Martin, Rite Aid, Avid Technology, NeoPhotonics and EXFO highlighted as Zacks Bull and Bear of the Day
Six members of Rite Aid’s pharmacy team have been selected for recognition through the company’s annual Pharmacy Champions program. This year, Rite Aid associates selected as the company’s “Pharmacy Champions” will each receive $2,500 in Rite Aid gift cards and the ability to designate a KidCents charity to receive a $2,500 donation from The Rite Aid Foundation. The six customers who nominated those selected will each receive $2,500 in Rite Aid gift cards.
Rite Aid Corp NYSE:RADView full report here! Summary * Perception of the company's creditworthiness is negative but improving * ETFs holding this stock are seeing positive inflows but are weakening * Bearish sentiment is high * Economic output in this company's sector is expanding Bearish sentimentShort interest | NegativeShort interest is extremely high for RAD with more than 20% of shares on loan. This means that investors who seek to profit from falling equity prices are currently targeting RAD. Money flowETF/Index ownership | NegativeETF activity is negative and may be weakening. The net inflows of $482 million over the last one-month into ETFs that hold RAD are among the lowest of the last year and appear to be slowing. Economic sentimentPMI by IHS Markit | PositiveAccording to the latest IHS Markit Purchasing Managers' Index (PMI) data, output in the Consumer Services sector is rising. The rate of growth is strong relative to the trend shown over the past year, and is accelerating. Credit worthinessCredit default swap | NegativeThe current level displays a negative indicator with a strengthening bias over the past 1-month. RAD credit default swap spreads are near their highest levels for the past 1 year, which indicates the market's more negative perception of the company's credit worthiness.Please send all inquiries related to the report to email@example.com.Charts and report PDFs will only be available for 30 days after publishing.This document has been produced for information purposes only and is not to be relied upon or as construed as investment advice. To the fullest extent permitted by law, IHS Markit disclaims any responsibility or liability, whether in contract, tort (including, without limitation, negligence), equity or otherwise, for any loss or damage arising from any reliance on or the use of this material in any way. Please view the full legal disclaimer and methodology information on pages 2-3 of the full report.
Hedge funds and large money managers usually invest with a focus on the long-term horizon and, therefore, short-lived dips on the charts, usually don't make them change their opinion towards a company. This time it may be different. During the fourth quarter of 2018 we observed increased volatility and small-cap stocks underperformed the market. Hedge […]
As the opioid crisis continues to rage in the United States, publicly traded companies that manufacture, market, or sell the prescription drugs at the center of the epidemic are facing shareholder resolutions for governance reforms and improved disclosure of risks around their involvement in the making or sale of the drugs. In the process, this effort is turning the spotlight to how major fund companies and other big investors are casting their proxy votes in 2019. Starting this week and continuing over the next month, shareholders of Johnson & Johnson JNJ , Mallinckrodt MNK , and CVS Health CVS will be voting on opioid-related resolutions.
Rite Aid Corporation announced today that the New York Stock Exchange has notified the company that it is has regained full compliance with NYSE minimum average share price listing requirements.
The drugstore operator's 1-for-20 reverse split means that the stock is in compliance, but investors continue to bail on the poorly performing investment.
The bull case for Charlotte's Web (OTCMKTS:CWBHF) stock seems reasonably easy to make. The producer of hemp and hemp-derived CBD (cannabidiol) oil has a massive growth opportunity akin to that of marijuana stocks. Yet with the passage of the Farm Bill late last year, Charlotte's Web products should be clearly legal in the U.S. That suggests a larger, nearer-term market opportunity for Charlotte's Web - and perhaps more potential near-term gains for Charlotte's Web stock.Source: Shutterstock Indeed, I recommended Charlotte's Web stock at the end of last year. That's proven to be a smart call. CWBHF stock has gained nicely, rising about 70%. Those gains are roughly in line with most marijuana stocks: Canopy Growth (NYSE:CGC) has gained 80%, and Cronos Group (NASDAQ:CRON) about 60%. Clearly, optimism toward the Farm Bill and a broader 'risk-on' sentiment in equity markets have helped cannabis and hemp stocks across the board.At current levels, however, there are risks to CWBHF stock. Marijuana stocks on the whole look potentially stretched, and while Charlotte's Web has some advantages over that group, its valuation too incorporates quite a bit of growth. An awful lot of good news seems priced in at this point - but there are risks that could send Charlotte's Web stock tumbling.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 A-Rated Stocks That Are Under $10 The Valuation of Charlotte's Web StockThe story behind Charlotte's Web, as a business, looks attractive. The company is a leader, and likely the leader, in the growing CBD oil space. Its hemp production has soared, rising more than tenfold to 675,000 pounds in 2018, per the Q4 release. And now larger retailers are coming on board: Walgreens (NASDAQ:WBA) and Rite Aid (NYSE:RAD) both announced recently that they would add CBD products to their stores.In other words, there are several avenues for growth. Charlotte's Web has the potential to take market share in what looks to be an extremely fragmented industry, either through acquisitions or through the eventual failure of some of the myriad producers in CBD. Points of distribution are going to rise. Charlotte's Web on its website cites 4,000 retail locations at the moment. Walgreens has over 18,000 stores, and Rite Aid nearly 2,500.To be sure, neither Walgreens nor Rite Aid is launching CBD products in all of its stores immediately. Rite Aid is limiting its initial exposure to just topical products in a few states. But the broad point still holds: Charlotte's Web can take more share in a market set to reach more customers through more stores.One key risk, however, is that the story isn't exactly unknown by investors at this point. Charlotte's Web stock now has a market capitalization over $2 billion. It trades at about 30x 2018 revenue and 100x 2018 Adjusted EBITDA. Those are huge numbers, mostly in line with larger marijuana stocks. Yet Charlotte's Web, in part because it had a larger 2017 base, isn't growing as fast as most THC-based companies.Sales rose 'just' 74% in 2018. That's an impressive rate, certainly, but lags the triple-digit rates seen elsewhere in the space. Adjusted EBITDA rose 48%. But that includes a year-over-year decline in the fourth quarter. As impressive as Charlotte's Web market opportunity is, recent growth must repeat for years to support the current valuation. Anything less simply isn't good enough. Is CBD a Fad?And that growth requires that CBD demand continue to grow at the same nearly exponential rate at which it has of late. That seems possible but hardly guaranteed. The Charlotte's Web origin story, as Matt McCall detailed in calling Charlotte's Web stock his best pick for 2019, is that a girl named Charlotte saw her seizures decrease dramatically when she started taking CBD oil. Many other customers swear by the product for myriad other uses.But as the New York Times pointed out in February, at least so far there's little scientific evidence backing the effectiveness of CBD oil. In fact, there's little standardization even of dosing, particularly given the various types of applications. Swallowing CBD oil results in a very different dose of cannabidiol than a topical cream.Anecdotal evidence appears to support some use for the product, admittedly. But advocates and CHWBF bulls are expecting adoption and persistence rates to stay as high going forward as they have been of late.It remains to be seen whether that will be the case. A product that supposedly cures so many afflictions will inspire demand. But it will also raise expectations. If new customers expect CBD oil to be a super-supplement and it fails, what then?Indeed, we've seen similar trends come and go, particularly in dieting. Atkins was huge, then it faded. Gluten-free sales soared among customers without specific allergies, then faded.CBD oil obviously is different from those products. But there's still a valid question: is it a wonder drug, or just another fad that will come and go? At this point, the jury still is out. Where Do Margins Go?Even assuming the market continues to grow, there's a key question in terms of profit margins: what does a mature CBD market look like? Is it akin to food and beverage markets, where there are differentiated, branded products at the high end and low end? Or does CBD, the benefits of which supposedly are based on the underlying compound, become commoditized?This question is key for marijuana stocks as well. But in CBD, it seems even more pressing. Charlotte's Web at the moment has an edge over smaller rivals because it seems more trustworthy. It's been around longer. It's respected. Consumers can trust the manufacturing process, and trust that the CBD content is accurately measured. Smaller, less well-known rivals may not have the same level of trust.At some point, however, that changes. A major company like Coca-Cola (NYSE:KO) may enter the space. Or clearer legalization may allow for more standardized manufacturing and more transparent production processes and labeling.If CBD oil is simply a commodity, Charlotte's Web almost certainly loses pricing power. If there's no "better" CBD oil, producers will compete more on price and less on branding. Charlotte's Web's first-mover advantage will evaporate and margins will decline.There are similar worries on the cannabis side. Legalization in Oregon, for instance, has led to plunging prices. The same Farm Bill that led to so much optimism behind Charlotte's Web stock could lead to a similar outcome in CBD oil. And at 100x EBITDA and 130x net income, Charlotte's Web stock is not priced for falling prices or stagnant margins.That's the broad worry at this point. Even with a decline in recent sessions, Charlotte's Web stock still looks priced for something close to perfection. But risks lurk. At this price, it only takes one of the risks to lead CWHBF to tumble.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 7 A-Rated Stocks That Are Under $10 * 7 U.S. Shale Oil Stocks to Buy as Prices Rise * 10 Stocks to Sell Before They Give Back 2019 Gains * 10 Oversold Stocks to Run From Compare Brokers The post 3 Key Risks to Consider Before Jumping into Charlotte's Web Stock appeared first on InvestorPlace.
At no point in the past four years has CVS Health (NYSE:CVS) been easy to own. CVS stock currently lies more than 50% below its mid-2015 peak price and is still within easy striking distance of multi-year lows touched in March. It's becoming more and more difficult to be an enthused owner, or buyer.Source: Mike Mozart via FlickrThis may well be the time to step in though… while it's name investors have not only given up on, but a name many investors have forgotten about. 'Expect it when you least expect it' is good advice in the capital markets arena too.Just know that CVS Health is never going to be what made it a great company before 2015.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Unexpectedly Up-EndedFor the record, it's not the company's fault. CVS stock was not the only pharmacy stock to lose an uncomfortable amount of ground since 2015's highs. Shares of Walgreens Boots Alliance (NASDAQ:WBA) are off to the tune of 45% for the same timeframe. Rite Aid (NYSE:RAD) stock has been walloped, losing more than 90% of its value for the four-year stretch, driven by missteps. * 7 A-Rated Stocks That Are Under $10 There's no exact cause for the meltdowns to pinpoint.The advent of online pharmacies like PillPack, now owned by Amazon.com (NASDAQ:AMZN), certainly contributed. The rise and fall of the Affordable Care Act, aka 'Obamacare' also hurt; pharmacies were largely lost in the shuffle, and caught in the middle both coming and going.Sky-high drug prices finally ruffled enough of the right feathers. The very concept of brick-and-mortar shopping has suffered too, exacerbating the challenges the industry simply didn't see coming.Whatever combination of stumbling blocks did the damage, the drugstore business finally appears to have regrouped.CVS Health appears better positioned for that rebound than either of its rivals do. And, trading at only 7.4 times next year's expected earnings, CAT stock is a bargain because of that turnaround. Partnerships and CVS StockThe industry, not unlike society, has changed. Alliances that were once strange if not unthinkable are now forming.Chief among those unlikely pairings is, of course, last year's acquisition of health insurer Aetna by CVS Health. The $70 billion deal not only united two behemoths of the healthcare market, but two distinctly different behemoths. Aetna is a payer, and CVS is prescriptions.In the meantime, the company has opened more than 1,000 mini-clinics at its established pharmacies, offering consumers an alternative to a traditional visit to a separate doctors' office.The all-inclusive bent isn't stopping there though. On Thursday CVS Health announced it would be opening a few hundred SmileDirect shops at its pharmacies. SmileDirect offers affordable dental alignment options that are proving preferable to conventional metallic dental braces.It's not full-blown dentistry, nor are walk-in clinics the same opportunity secondary care. So far, CVS Health hasn't indicated any interest in filling cavities or offering secondary care.That's the shape of things to come though, and CVS is securing a solid head start on would-be competitors that may want to plug into the idea of a becoming a one-stop solution. Bottom Line for CVS StockThe overhang, of course, is the uncertain future of healthcare within the United States.President Donald Trump remains in support of the idea of keeping all aspects of the business privatized, while most Democrat Presidential candidates are leaning toward a one-payer system.Those platforms and ideas are arguably more for the purpose of scoring political points than laying the foundation for a sweeping change in how the nation's healthcare system functions.Though a Democratic victory in 2020 still doesn't necessarily assure the government will take top-down control of the nation's healthcare system, it would undoubtedly prove problematic for corporations already in the business. As Raymond James analysts wrote just a few days ago when lowering its price target on CVS, there's a "collapse in sentiment for the payor-PBM complex" that CVS Health still operates.The vertical and horizontal integrations CVS Health has been piecing together are well positioned to survive whatever legislation takes shape ahead.The dealmaking, it seems, is finally paying off. And, even with its lower price target on still-sliding CVS shares, Raymond James' analysts "believe the discount is unwarranted."Investors should take notice of the sweeping turn sooner than later.As of this writing, James Brumley did not hold a position in any of the aforementioned securities. You can learn more about James at his site, jamesbrumley.com, or follow him on Twitter, at @jbrumley. More From InvestorPlace * 5 Hot Dividend Stocks to Buy as the Weather Heats Up * 7 Dividend Stocks That Could Double Over the Next Five Years * 10 Stocks to Sell Before They Give Back 2019 Gains * 7 Cloud Stocks to Buy Now Compare Brokers The post It's a Little Dicey, but CVS Stock Actually Might Have Turned the Corner appeared first on InvestorPlace.
With the highest rate of measles cases being reported in the United States since the disease was declared eliminated in 2000, Rite Aid announced today that Measles-Mumps-Rubella (MMR) vaccinations are available upon request at Rite Aid pharmacies across California including Los Angeles County. No appointment is necessary and vaccinations from a Rite Aid certified immunizing pharmacist are available during normal pharmacy business hours. There are currently five confirmed cases of measles, in Los Angeles County, California, as well numerous sites that have been identified for potential exposure according to the Los Angeles County Department of Health.
Rite Aid Corp operates retail drugstore chains in the United States. Warning! GuruFocus has detected 5 Warning Signs with RAD. For the last quarter Rite Aid Corp reported a revenue of $5.4 billion, compared with the revenue of $5.4 billion during the same period a year ago.
Walgreens Boots Alliance (NASDAQ:WBA) is having a rough go of it lately. Walgreens stock trades at its lowest levels in almost six years. Sales are declining, so are earnings.Source: Mike Mozart via FlickrThe company's decision this week to raise the buying age for tobacco to 21 in its stores doesn't really change the case for Walgreens stock. Walgreens may be giving up some sales, but it's likely a small amount of total revenue. Cigarette sales likely aren't high-margin, either, meaning the impact on profits likely will be even smaller.But that doesn't mean the decision is immaterial to WBA stock. The problem for Walgreens, and one key reason why WBA shares have struggled so much of late, is that the company simply isn't executing well. The change in tobacco policy is just one symptom of that ongoing problem. As cheap as Walgreens stock looks, that execution needs to improve before investors look to buy the dip here.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Stocks to Sell Before They Give Back 2019 Gains Walgreens Moves the Cigarette Age to 21Walgreens' move to raise the buying age for tobacco to 21 didn't come out of the blue. Rather, it came because the Food & Drug Administration (FDA) was breathing down the company's neck. The agency announced in February that Walgreens was the top violator among pharmacies that sell tobacco products, with 22% of locations making illegal sales.To be fair, Walgreens is the largest pharmacy seller of tobacco products by far. Rival CVS Health (NYSE:CVS) stopped selling tobacco back in 2014, and smaller Rite Aid (NYSE:RAD) now is following Walgreens' lead. At the same time, however, this is an ongoing problem for Walgreens which dates back nearly a decade and includes some 240 penalties incurred just since 2010.The inability to control tobacco sales on its own might not seem like a big problem. But in conjunction with disappointing results of late, it certainly seems like something is not working at the store level for Walgreens. Instead of simply fixing the tobacco problem and avoiding fines, Walgreens is making a blanket policy change.Again, the issue isn't necessarily financial. When CVS ended tobacco sales, on conference calls at the time it cited a 5-8 point hit to sales growth. But it also highlighted better margins: cigarette sales simply aren't that profitable.But Walgreens' current struggles mean the company needs all the help it can get. More broadly, even with WBA stock at a multi-year low, Walgreens needs a turnaround at the store level. The decision to raise the buying age isn't comforting on that front. Why WBA Stock Is Id Scraping LowsTobacco aside, Walgreens sales simply are headed in the wrong direction particularly outside of pharmacy. According to SEC filings, comparable retail sales dropped 1.0% in fiscal 2017 and 2.4% the following year. Performance has been even worse in the first two quarters of this fiscal year: a 3.5% drop including a 3.8% decline in the disappointing Q2.Admittedly, there are some industry-wide factors at play. CVS and Rite Aid are seeing similar struggles in terms of retail sales and their stock prices. CVS stock is near a six-year low, though its acquisition of Aetna hasn't helped. Rite Aid just executed a reverse stock split and trades near a ten-year low.All three chains are struggling with retail sales. Pressures from generic drug pricing are hitting pharmacy revenue but the companies aren't getting the corresponding savings on the cost side. Amazon.com (NASDAQ:AMZN) looms after its acquisition of PillPack. And grocers like Kroger (NYSE:KR) are looking to pharmacy and convenience sales to boost their own weakening growth profiles.But industry headwinds alone aren't enough of an excuse for Walgreens. Execution clearly isn't good, given declining sales. The company radically overhauled its Balance Rewards program last year. The Rite Aid acquisition hardly looks smart, given a non-zero chance Walgreens could have picked up stores out of bankruptcy. (And bear in mind that it was the FTC that kept Walgreens from acquiring the entire chain).Simply put, Walgreens needs to do better at the store level. But Walgreens Stock Is Cheap…Even with those concerns, however, Walgreens stock is tempting. WBA trades at less than 9x FY19 EPS estimates. The balance sheet is much cleaner than that of CVS post-Aetna or Rite Aid. Amazon might be a threat at some point, but so far all has been quiet on that front.Drug pricing pressures may ease at some point. It remains to be seen how PBMs (pharmacy benefit managers) will be treated, and how those changes will echo down to the retail level.The story here isn't over. All hope isn't lost, and there's an intriguing case to buy the dip here. But for WBA stock to rally, store-level performance needs to improve. And investors might want to see some evidence of that improvement before jumping in with both feet.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Oversold Stocks to Run From * 7 Red-Hot E-Commerce Stocks to Consider * 4 Stocks Surging on Earnings Surprises Compare Brokers The post The New Cigarette Policy Shows Why Walgreens Stock Is Broken appeared first on InvestorPlace.