Opinions Gordon Reid
Walgreen Boots AllianceWBACOMMENTJun 21, 2017
Gordon ReidOwned
$78.12
Stock price when the opinion was issued
$12.05
As of Aug 27, 2025. Market Open.
specialty stores
It's the ideal tool to help you make quicker, more informed decisions for managing and tracking your investments.
You might be interested:
DON'T BUY
They report Tuesday. Very worried. Not sure if their buy of Summit Health can give their shares a boost. Have been a poor performer among retailers with decent balance sheets. He needs to hear them speak about theft. Buying stuff there is discouraging because it's under lock and key. It's easier to buy from Amazon.
specialty stores
DON'T BUY
Among the worst Dow performers in Q3 Down 17%. Pays a 6% yield. He expected more from them given the Covid booster shot business. Trades at 6.3x earnings. That tell him they gained little market share during the pandemic unlike CVS. They lack a strategy to compete with Amazon; people buy consumer staples from Amazon instead. Walgreen stores are short of staff, which effects service.
specialty stores
This has been a disappointment. They are facing the back of the store challenge, in terms of a mix towards generics, a lower margin business than the pure pharmaceutical. Counteracting that are demographics. People are getting older, and as they get older they take more pills. There is also the Amazon affect with the e-commerce model affecting retailers. He doubts Amazon wants to get involved with a regulated environment. Longer-term, he thinks these are very good franchises. Earnings continue to do well. (See Top Picks.)