The popular retail drug store, Walgreens Boots Alliance Inc (NASDAQ:WBA) is slated to report quarterly earnings next week and many investors are on board with this momentum stock.
Based on the company’s last earnings report for the period ending on May 31, Walgreens revealed earnings of $1.02, a 17.2% positive surprise to the Street. Currently, analysts are projecting that next week the retailer will report earnings of $1.08.
At the time of its last quarterly earnings, Macquarie analyst Bob Summers reiterated an Outperform rating on the stock and raised the price target from $95 to $100. Summers argued that the company is “a beneficiary in challenging markets as investors gravitate toward large cap stable brands and particularly companies exhibiting favorable earnings momentum.” Plus, he added that “the merger’s transformative nature, initial success and optimism around the company remaining a participant in ongoing consolidation will generally support further multiple expansion.”
Just two weeks ago, Cowen analyst Charles Rhyee upgraded the stock to a Buy rating and raised his price target from $90 to $104. Rhyee thinks that now is an opportune time to purchase shares of Walgreens following their recent share selloff.
In addition to analysts, the latest hedge fund activity reflects a positive sentiment on the stock. Over the last quarter, hedge funds have increased shares of Walgreens by 3.9 million shares. This includes a 349% increase in shares by Highbridge Capital Management and a 101% increase in shares by Lone Pine Capital LLC.
Walgreens has a one year high of 97.30 and a one year low of 58.39. The stock opened today at 87.13, close to its 52-week high.