52.50 +0.12 (0.23%)
After hours: 7:58PM EDT
|Bid||52.41 x 4000|
|Ask||52.51 x 900|
|Day's Range||52.29 - 53.12|
|52 Week Range||49.31 - 86.31|
|Beta (3Y Monthly)||0.65|
|PE Ratio (TTM)||9.83|
|Earnings Date||Jun 27, 2019|
|Forward Dividend & Yield||1.76 (3.32%)|
|1y Target Est||57.90|
Nike earnings are on tap Wednesday. Accenture and Walgreens earnings also are due. All three stocks are near key levels. RealReal is set to IPO.
Walgreens Boots Alliance is scheduled to report its third-quarter financial results on Thursday ahead of the opening bell.
(Bloomberg Opinion) -- FedEx Corp. may finally be waking up to the threat Amazon.com Inc. poses to its business model.The logistics company is offering big discounts to help fill the planes in its Express delivery network with more e-commerce shipments, according to the Wall Street Journal, which cited people familiar with the matter. The deals are being used to woo customers away from rival United Parcel Service Inc., or to convince them to switch from FedEx’s cheaper ground offerings, the newspaper said, citing people familiar with the matter. For some customers, shipping goods via FedEx’s two-day air service may now cost about the same as shipping them through the ground division.(1)A FedEx spokeswoman told the Wall Street Journal that the company hasn't changed its pricing strategy, adding that the two-day Express service “has been very successful and continues to deliver tremendous value to small and medium businesses competing in the e-commerce market.” Reports of the discounts come just weeks after FedEx said its domestic Express air-delivery unit was dropping Amazon as a customer to focus on "serving the broader e-commerce market." FedEx dropped Amazon as a customer for its Express air-delivery unit to focus on “serving the broader e-commerce market.” The charitable interpretation of that move is that FedEx had found a bit of backbone and was holding a firmer line on pricing with Amazon in an effort to bolster its profit margins. The other possibility is that FedEx recognized that Amazon’s efforts to bring more of its logistics operations in house were real, and that it may want to start the process of breaking up with Amazon before Amazon decides to break up with it. While FedEx CEO Fred Smith has repeatedly painted any notion of Amazon disrupting the logistics industry as “fantastical,” his actions increasingly suggest otherwise. The share of capacity devoted to the time-sensitive legal documents and medical supplies that the FedEx Express network was originally built for will likely continue to shrink. But it’s uneconomical for the division’s fleet – which numbered 670 leased and owned planes at the end of 2018 – to fly partially full or not at all. Meanwhile, FedEx expects U.S. e-commerce demand to grow to 100 million packages per day by 2026. It’s been adamant that Amazon only directly accounts for a small percentage of its overall sales. But Amazon has forever changed the world’s expectations around shopping and delivery. So whether or not its own sales are in the mix, FedEx will be forced to drink more deeply from the firehose of e-commerce shipments to keep its network humming along. And that will come at a cost to margins.FedEx’s decision to prioritize shipments from the likes of Walmart Inc., Target Corp. and Walgreens Boots Alliance Inc. gave some analysts hope that it would deliver a greater share of packages to higher-paying business customers and add more density to its delivery routes. But there’s some debate as to whether the Express air-delivery unit as currently constituted still makes sense. Amazon relies on a network of fulfillment and sorting centers close to metropolitan areas to rapidly complete and ship orders, a model that many rival retailers are mimicking in some shape or form as they try to stay competitive. If you’re only going to deliver a package 25 or 50 miles, you’re not going to use a plane to do that. Indeed, when FedEx’s decision to drop Amazon as a U.S. Express customer was first announced, Seaport Global Holdings analyst Kevin Sterling wondered to Bloomberg News whether it was a precursor to the Express unit eventually fading out.Planes still have a role to play: Amazon last week announced an agreement to lease 15 additional Boeing Co. 737-800 converted freighters from General Electric Co.’s jet-lessor arm, adding to an existing agreement for five planes. But FedEx’s reported need to offer discounts to keep the planes it has full calls into question the company’s decision to devote a significant amount of its capital expenditure budget to refreshing its airplane fleet. Management has been clear it’s not expanding capacity at the Express unit, but rather replacing its planes with more efficient options to improve productivity and costs. Downsizing the fleet and reallocating those resources could be a smarter move. The reported pricing cuts – coupled with FedEx’s recently announced plan to offer delivery seven days a week by 2020 and add a fleet of flexible, part-time drivers – reinforce a point both I and my colleague Shira Ovide have long argued: Amazon doesn’t need to steal customers away from FedEx and UPS en masse to be a threat. It’s already forcing both companies to rethink the way they operate. The revenue lost from removing Amazon as an Express customer is relatively minor, but the world the e-commerce giant has created isn’t a hospitable one for the package-delivery incumbents’ profit margins and capital-spending budgets. (1) News of the discounts weighed on shares Monday, as did a separate shipping issue: FedExhad to issue a second apology to Huawei Technologies over the misrouting of packages, and some reports indicate China is contemplating black-listing it.To contact the author of this story: Brooke Sutherland at firstname.lastname@example.orgTo contact the editor responsible for this story: Beth Williams at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Brooke Sutherland is a Bloomberg Opinion columnist covering deals and industrial companies. She previously wrote an M&A column for Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
With a trade war between the U.S. and China that has been raging on since March 2018, the economic effects are becoming clearer.
Challenging market conditions, especially in retail, causes a slowdown in the Retail Pharmacy International division at Walgreens Boots (WBA).
Walgreens today announced it has delivered on the expansion of its safe drug disposal program announced last fall to provide year-round drug disposal options in all of its pharmacies nationwide, at no cost to customers. To complement its existing national effort to make the disposal of unwanted medications safer, easier and more convenient, all Walgreens pharmacies that do not currently offer a safe medication disposal kiosk now offer DisposeRx packets or other drug disposal options*, available upon request for customers to safely discard their unwanted medications at home. “We recognize the need to provide solutions to dispose of unwanted medications that meet the preferences of all our customers.
Equity markets set all-time highs after Fed chairman Jerome Powell hinted that the central bank may loosen its monetary policy in the coming months amid China-U.S. trade tensions and other signs of weakness in the economy. Meanwhile, with President Donald Trump scheduled to meet with Chinese President Xi Jinping at the Group of 20 summit this week in Japan, investors are optimistic that a trade truce can be reached that would stave off new tariffs.
Amazon’s (AMZN) efforts to crack the more than $600 billion prescription drug market in the US has suffered a blow, albeit a mild one. A federal judge in Rhode Island ruled on June 18 that a former executive at pharmacy chain CVS Health (CVS) couldn't work for Amazon’s pharmacy business, PillPack.
Editor's note: InvestorPlace's Earnings Reports to Watch is updated weekly. Please check back next week for our latest earnings picks.The earnings calendar is surprisingly full next week. Typically, late June is a quiet time for the market. But several major companies in several key sectors will deliver earnings reports next week.Most notably, investors should be able to get a read on the consumer packaged goods sector. Conagra Brands (NYSE:CAG), McCormick (NYSE:MKC), Constellation Brands (NYSE:STZ,NYSE:STZ.B), and General Mills (NYSE:GIS) all release earnings reports next week. The market will get some good data on the struggling supplier side of that industry after decent, but unspectacular results from retailer Kroger (NYSE:KR) this week.InvestorPlace - Stock Market News, Stock Advice & Trading TipsElsewhere, FedEx (NYSE:FDX) delivers its fiscal fourth-quarter results on Tuesday afternoon. FedEx isn't quite the economic bellwether it once was, but its take on the macro economy still will be worth noting. And investors in United Parcel Service (NYSE:UPS) no doubt will be watching closely as the two incumbents try and manage rising pressure from Amazon.com (NASDAQ:AMZN). * The 7 Best Dow Jones Stocks to Buy for the Rest of 2019 Reports from KB Home (NYSE:KBH) and BlackBerry (NYSE:BB) also look important. Overall, there's a decent amount of news coming ahead of a holiday week. But even those reports aren't the most important to watch next week -- which shows just how much is going on. Before going on vacation, investors need to pay attention to these three key earnings reports next week: Micron (MU)Source: Shutterstock Earnings Report Date: Tuesday, June 25, after market closeFew companies outside of Micron (NASDAQ:MU) seem more in need of a good earnings report. And excluding retail, few sectors need a dose of optimism more than semiconductors. Hopes for a second-half recovery seem to have dimmed. Commentary after Broadcom (NASDAQ:AVGO) earnings this week are the latest signal that a chip rebound isn't coming until 2020 at the earliest.For Micron, memory prices still are headed in the wrong direction, but the question remains how long that will last. As such, commentary from management on Tuesday afternoon may be more important than the actual numbers.It will also be interesting to see how aggressive the company was in buying back MU stock given a $10 billion repurchase authorization announced last year. Did the company put its money where its proverbial mouth has been?MU stock does look attractive at the lows, in part because it looks so cheap. But that valuation exists because market participants believe earnings declines will continue for some time to come. If Micron can convince those investors otherwise, MU stock will rise. And it will likely bring other chip stocks -- and their suppliers -- along for the ride. Walgreens Boots Alliance (WBA)Source: Mike Mozart via FlickrEarnings Report Date: Thursday, June 27, before market openThen again, it could be worse for chip stocks; they could be pharmacies. Walgreens Boots Alliance (NASDAQ:WBA) heads into Thursday's earnings report just off a five-year low. It's not alone. CVS Health (NYSE:CVS) touched a six-year low last month. Rite Aid (NYSE:RAD) is in a similar spot.Here, too, both the stock and the industry desperately need some good news from earnings. But there's not a lot of reason to expect that good news is on the way. Front-end sales trends have been negative across the industry of late, with no sign of a bottom. Pressures on the pharmacy side -- fewer generics and higher drug costs -- aren't going anywhere. And as I wrote in April, Walgreens' execution has left quite a bit to be desired as well. * 5 Boring Stocks to Buy This Summer WBA stock is cheap, and investors might see this as the point of maximum pessimism. But that case could have made for the last few quarters; none of those earnings reports have changed the broader trend here. If Walgreens can deliver, pharmacy stocks can rally. At the moment, however, that seems like a big ask. Nike (NKE)Source: Shutterstock Earnings Report Date: Thursday, June 27, after market closeEarnings reports from Nike (NYSE:NKE) are always interesting. The sneaker giant is a barometer for consumer confidence, given its high-dollar and somewhat discretionary offerings. NKE stock itself generally doesn't move all that much after earnings, but its numbers and commentary can have an impact across the apparel and footwear industries.Thursday afternoon's report seems a bit more interesting than usual. As Luke Lango noted, Nike is one of the stocks with the largest exposure to trade war concerns. That's true on the cost front, given how many Nike products are manufactured in that country. But as Lango noted, Nike also gets 15% of its sales from Greater China.And so Nike represents a test case for the impact of U.S.-China relations at the moment. Are Chinese consumers shunning U.S. brands --even Nike, one of their perennial favorites? Can tariff impacts on the cost side be offset? If not, how big is the impact?At the moment, it looks like the trade war is a long way from ending. Investors trying to prepare for the 'new normal' should take a close look at Nike earnings to understand what that new environment might look like.As of this writing, Vince Martin has no positions in any securities mentioned.Compare Brokers The post 3 Earnings Reports to Watch Next Week appeared first on InvestorPlace.
Management has a fine long-term record of value creation. At 2009's exact low CVS traded for 9-times that year's final earnings per share, while paying a 1.31% yield. Earnings per share never reached higher than $5.84 during that entire three-year period.
Walgreens (WBA) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Walgreens, a provider of trusted care in communities since 1901, is helping to raise awareness about skin health this summer with a series of programs to educate the public about skin cancer risks and the importance of early detection. Through interactive, community-focused events featuring dermatologists, knowledgeable pharmacists and specially-trained beauty consultants, Walgreens will offer free resources to help people protect their skin during the summer months. According to The Skin Cancer Foundation, skin cancer is one of the most common forms of cancer in the United States, and also one of the most preventable.
CVS Health (NYSE: CVS) faces two distinct headwinds that are putting pressure on CVS stock.First, markets are cautious over the drug store and drug manufacturing market as the government pressure all players to lower drug prices.InvestorPlace - Stock Market News, Stock Advice & Trading TipsDoubts over CVS' acquisition of Aetna are adding more distractions for management in the near-term. With CVS stock testing the $51.72 yearly low on at least five occasions since March, what will it take for the stock to rebound?CVS reported first-quarter earnings of $1.62 and also raised its full-year adjusted EPS guidance to $6.75 to $6.90. This is up from the previous guidance of $6.68 to $6.88 a share.The Q1 beat and improved outlook are due largely to the inclusion of managed care operations. The company also included revenue from SilverScript Medicare Part D, which contributed $17.9 billion of revenue for the quarter. * 5 Stocks to Buy for $20 or Less Better synergies with Aetna also contributed favorably to the higher outlook. CVS expects it will exceed its target savings of $750 million in 2020. It found synergies stemming from the elimination of duplication in corporate and operational functions, medical cost savings such as formulary alignment, and purchasing efficiencies. By 2022, CVS forecast saving $1.5 billion to $2 billion, well above its deal synergy targets.CVS forecast cash flow of between $9.8 billion and $10.3 billion and will use $4.2 billion to $4.6 billion to pay down its debt. Its debt/equity of 1.25 times is above that of Cigna Corporation (NYSE: CI) at 0.95, and UnitedHealth (NYSE: UNH) at 0.74, both of which are attractive investments.Despite the less favorable debt/equity, CVS Health pays a dividend yielding 3.69%. Walgreens Boots Alliance (NASDAQ: WBA) also has a lower debt/equity of 0.73 but its dividend is slightly lower too, at 3.35%. Value Investing OpportunityInvestors who think that CVS has deep value with a forward P/E of 7.6 times are betting the company will mitigate near-term headwinds hurting the business. In Q1, prescription growth of 5.5% benefited from the support of clinical care programs and network relationships.The company will improve margins in its long-term care business. And with PBM, the idea of a net cost pricing model is resonating with clients. Some clients will adapt to this offering while CVS expects its uptake improving in 2020 and beyond.CVS is testing new approaches in delivering and managing health care. Its Houston HealthHub stores bring health care services into communities. Meeting people where they are should drum up more business.Still, CVS will primarily use data and analytics to deliver such services at the best cost. Plus, it has a long-term vision of seamlessly connecting consumer experiences across digital and clinical interactions.Initial results from the Houston stores are encouraging. The locations are performing better than expected, giving the company the green light to expand the HealthHUB model. RisksAlthough CVS Health's market share stood at 26.2% in the first quarter, front store comparable sales rose just 0.4%. Adjusted operating income from Retail/Long-term care dropped 18.9%. Reimbursement pressure, higher legal costs, and higher expenses weighed on Q1 results.Should costs grow higher than expected in the course of this year, CVS may lower its guidance. Fortunately, synergies from the Aetna acquisition are tracking higher than the company expected. HealthHUB is resonating well with customers. This is encouraging the company to add more net new items in the front-store of the self-care and wellness areas. Along with expanding MinuteClinic services, CVS will continue expanding the interactions between pharmacists and patients who need it most. ValuationThe 14 analysts offering a price target on CVS stock have an average price of $70.18, which is ~30% above the recent closing price of $54.17. Conversely, investors could assume a perpetuity growth rate of between 5% and 6% in the 5Y DCF Growth Exit model. In this scenario, the fair value of CVS stock is $63 a share, implying an upside of 16% for investors (per finbox.io). Your CVS Stock TakeawayThe CVS and Aetna deal is getting challenged. Investors could bet that the court lets the deal close. More importantly, CVS is already reaping the benefits of the combination by cutting costs. By delivering better services to the customers it services, the company will keep growing.Disclosure: As of this writing, the author did not hold a position in any of the aforementioned securities.Compare Brokers The post CVS Stock Has More Going for It Than Just a 3.69% Dividend Yield appeared first on InvestorPlace.
Walgreens Boots Alliance (WBA) closed at $52.80 in the latest trading session, marking a -0.02% move from the prior day.
Walgreens Boots Alliance Inc NASDAQ/NGS:WBAView full report here! Summary * Bearish sentiment is low * Economic output in this company's sector is contracting Bearish sentimentShort interest | PositiveShort interest is low for WBA with fewer than 5% of shares on loan. The last change in the short interest score occurred more than 1 month ago and implies that there has been little change in sentiment among investors who seek to profit from falling equity prices. Money flowETF/Index ownership | NeutralETF activity is neutral. ETFs that hold WBA had net inflows of $3.41 billion over the last one-month. While these are not among the highest inflows of the last year, the rate of inflow is increasing. Economic sentimentPMI by IHS Markit | NegativeAccording to the latest IHS Markit Purchasing Managersâ€™ Index (PMI) data, output in the Consumer Servicesis falling. The rate of decline is significant relative to the trend shown over the past year, and is accelerating. Credit worthinessCredit default swapCDS data is not available for this security.Please send all inquiries related to the report to firstname.lastname@example.org.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.
Every fund investor would like to see the manager of the actively managed funds that they own beat the market every year, but they've been left wanting for well over a decade. The lack of consistent outperformance on the part of large-cap active managers (the main contributors to the Ultimate Stock-Pickers concept) has been well documented by the S&P Indices Versus Active Funds (SPIVA) U.S. Scorecard. While five-year results have been poor for active management, there are some recent bright spots, particularly in large-cap value.
The Dow Jones Industrial Average has gained nearly 12% so far in 2019. It doesn't seem like a whole heck of a lot, but considering the topsy-turvey markets of 2019, it's a pretty strong lift. That gain was driven by the majority of the Dow 30 as most of the stocks in the DJIA index contributed to its postive year-to-date gain.Microsoft (NASDAQ:MSFT) is the biggest winner of the bunch, gaining more than 30%. But owing to the odd price-weighted nature of the index, it's likely Visa (NYSE:V), with a 28% gain and a higher share price, that has been the biggest driver behind the Dow's gains.Not every component of the Dow Jones today has had a strong year, though. Five of the index's 30 stocks have declined so far this year. But not all of them make the list of the five worst Dow Jones stocks in 2019, which we'll recount in greater detail going forward.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Top-Rated Biotech Stocks to Invest In Today For reasons that go beyond pure performance, these five components have had the roughest year so far, which means they have the most to prove in the second half of 2019. Walgreens (WBA)Source: Mike Mozart via FlickrWalgreens (NASDAQ:WBA) is the easiest pick on the list. That's somewhat ironic considering that Walgreens is one of the index's newest members, replacing General Electric (NYSE:GE) just last year. WBA stock far and away has had the worst performance in 2019: its 22.6% decline is almost exactly twice as steep as that of the index's second-biggest decliner. WBA touched a five-year low late last month before a modest rally in recent weeks.As I wrote in April, disappointing store-level execution clearly has been a factor. But what might be more worrisome for WBA is that the entire retail pharmacy industry seems to under threat. Shares of rival CVS Health (NYSE:CVS), too, have touched a multi-year low.Smaller Rite Aid (NYSE:RAD) continues to plunge, with a hefty debt load adding to the pressure. Front-end sales aren't growing, and in pharmacy higher generic prices are compressing already-thin margins.WBA stock is cheap, now at less than 9x forward earnings. But right now, Walgreens looks a lot like most other retailers - and that will have to change for Walgreens stock to reverse its performance in not only 2019, but the last few years. Dow Inc. (DOW)Source: Roy Luck via Flickr (modified)It's a little unfair to put Dow Inc. (NYSE:DOW) on this list. DOW shares actually have gained 6% since they were spun off from what is now (again) DuPont (NYSE:DD) on April 1st.But DOW is part of the DowDuPont spinoff, a hugely complicated financial engineering project that was supposed to create real value for shareholders. It hasn't happened. DWDP shareholders received one share of Corteva (NYSE:CTVA) and one share of DOW for every three DowDuPont shares they owned. At current prices, that totals about $50 in value. DWDP shares closed 2018 near $54 - after declining 25% last year.This was a case where many value investors saw significant upside. Yet trade war concerns and post-spin trading have led DWDP to destroy value, at least so far. DOW and its former siblings still have time, and room, to rally. But a lot of smart investors likely see the YTD performance as among the most disappointing in their portfolios. Intel (INTC)Source: Shutterstock Performance-wise, Intel (NASDAQ:INTC) hasn't been a bad stock in 2019. It's underperformed the market, but a 0.5% decline actually turns very slightly positive when accounting for dividend payments.Still, 2019 hasn't been a good year for Intel. It's suffering chip shortages. It's still behind in 10nm -- and about four years late. Rival Advanced Micro Devices (NASDAQ:AMD) is gobbling up market share in CPUs. Apple (NASDAQ:AAPL) settled with Qualcomm (NASDAQ:QCOM) in large part because Intel couldn't move quick enough to get the iPhone to 5G.Intel still is a behemoth in the chip space, and the company still has time to right its ship. With INTC stock at barely 10x earnings, there's upside if and when that happens. But the company's performance so far this year inspires little confidence, which has been much weaker than a flattish stock price would imply. 3M (MMM)Source: Shutterstock The 11.4% decline in 3M (NYSE:MMM) shares so far this year is the second-worst performance in the Dow. But no component has posted a worse quarterly report than 3M did with its Q1 release in late April. 3M stock plunged 13%, its worst one-day decline in over 30 years. The drop was big enough to on its own pull the index down over 100 points.MMM stock still hasn't recovered: it would drop nearly another 20% in the following weeks before bottoming of late. And there's a case for the stock after the big decline, as James Brumley argued earlier this month. A 3.4% dividend yield helps the argument, and 3M's diversified business should allow it to ride out any further near-term or market volatility.Still, Q1 was an obvious concern: stocks like 3M don't fall 25% in a matter of weeks for no reason. And it was the automotive and Chinese markets that led to the poor quarter. Neither seems likely to rebound sharply all that soon. At the very least, it's going to take a lot more than one good quarter for 3M to make back what it lost after Q1. Pfizer (PFE)Source: Shutterstock It's a bit unfair to put Pfizer (NYSE:PFE) on this list. Pfizer certainly hasn't had a terrible year. PFE stock is down 2.6%, the third-worst performance in the index. But drugmakers generally underperform in bull markets, and many drug stocks have done worse in 2019. A 3.4% dividend yield offsets most of those losses anyhow.That said, Pfizer hasn't had a great year, either. Rival (and fellow Dow component) Merck (NYSE:MRK) has gained 8%-plus. And it's hard not to get the sense that PFE, which traded mostly sideways for over three years in the middle of the decade, is back to being stagnant. There doesn't seem to much of a catalyst on the horizon to change the Pfizer story, while external pressures on the industry continue to mount.It's true that, even this year, PFE shareholders could have done worse. But given that 25 Dow Jones stocks are up YTD, it's obvious they could have done better.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * The 7 Best Tech Stocks to Buy for the Second Half of 2019 * 7 Top-Rated Biotech Stocks to Invest In Today * 4 Semiconductor Stocks to Sell Compare Brokers The post The 5 Worst Dow Jones Stocks So Far in 2019 appeared first on InvestorPlace.
Walgreens opened Monday at $52.57 with a loss of 23.1% year to date and in bear market territory 39.1% below its Dec. 4 intraday high of $86.31. The stock's weekly slow stochastic reading ended last week at 8.03, well below 10.00, making the stock technically "too cheap to ignore." Walgreens is also fundamentally cheap with a P/E ratio of 8.66 and a dividend yield of 3.33%, according to Macrotrend. Walgreens is in a period of transformation from being just a pharmacy chain to offering services to help cancer patients.