Jim Cramer - Mad MoneyWalgreen Boots AllianceWBADON'T BUYMar 24, 2023
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.
It reports Thursday. The company is in disarray and can't see a way out of this mess. For instance, they have located two stocks a few blocks apart. in one city. They have no idea what they're doing.
Since 2014 - stock has not performed well. Much prefers CVS. Pharmacy sales impacted after Covid-19. Recession will also be tough on business. Dividend yield fairly safe. Better names for growth and value.
Down 20% in the last 6 months. Their problem is that they are the ultimate brick-and-mortar company at a time when Amazon is crushing their performance.
Recent pullback good for long term investors. Recessionary environment is good for business (cheaper products). Strong assets with 8500 locations in USA. Excellent brand with strong track record.
He prefers CVS which has more dynamic growth in many health businesses, though if you already own WBA you don't need to sell it. WBA has a strong balance and the dividend is safe. Better stocks in healthcare elsewhere.
A serial underperformer, but the new CEO is making WBA more of a care-focused operation with clinics and in-home services. He's optimistic, but frankly it's easier to order some items from Amazon and not a WBA store.
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.
Tough for years with decrease in consumer traffic during the pandemic.
Likes the company and healthy dividend.
Will see recovery as pandemic eases.
Stable business that is good for long term investor.
Has since sold shares.
Doesn't think company is headed in the right direction.
Peer group analysis indicating company not as strong as competitors.
Better names to own within the sector.
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.