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Valued at a market cap of $8.9 billion, Walgreens Boots Alliance, Inc. (WBA) is a global leader in retail pharmacy, healthcare, and wellness. The Deerfield, Illinois-headquartered company, WBA, operates through its vast network of retail pharmacies, health and beauty product stores, and distribution services across the United States and international markets, including Europe and Latin America.
Shares of Walgreens Boots have struggled to keep up with the broader market over the past year. WBA has declined 54.8% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 22.7%. However, in 2025, the stock has popped 10.2%, outpacing the SPX’s 2.7% rise on a YTD basis.
Narrowing the focus, WBA has also lagged behind the Health Care Select Sector SPDR Fund's (XLV) 4.5% gain over the past year but has surpassed XLV’s 6.8% rise in 2025.
On Jan. 31, WBA shares plunged 17% in the morning session after the company announced its first dividend suspension in over 90 years, aiming to reduce debt and improve cash flow as part of its turnaround strategy. While a dividend cut was anticipated, a complete suspension surprised investors, especially given ongoing challenges like store optimization costs, debt maturities, and limited near-term growth prospects. The news, coupled with recent legal troubles over alleged unlawful opioid prescriptions, has heightened market volatility, reflecting concerns over the company's financial outlook and legal uncertainties.
For the current fiscal year, ending in August 2025, analysts expect WBA’s EPS to decline 44.4% year over year to $1.60 on a diluted basis. The company's earnings surprise history is mixed. It beat the consensus estimate in three of the last four quarters while missing the forecast on another occasion.
Among the 15 analysts covering WBA stock, the consensus rating is a “Hold.” That’s based on two “Strong Buy” ratings, ten “Holds,” two “Moderate Sells,” and one “Strong Sell.”
This configuration has been fairly consistent over the past months.
On Jan. 31, Truist Financial analyst David S. Macdonald reaffirmed a “Hold” rating on Walgreens Boots Alliance.
The mean price target is $11.13, representing a premium of 8.3% compared to WBA’s current price levels. The Street-high price target of $15 suggests an upside potential of 45.9%.
