Title: Walgreens Shares Plunge Below $10, Marking Lowest Level in 27 Years – What Does This Mean for Investors?
Walgreens Boots Alliance Inc. shares experienced a significant drop below $10 on Tuesday, hitting a 27-year low for the pharmacy chain. Currently trading at $9.60, the shares are on track to close at their lowest level since 1996, according to Dow Jones Market Data. This latest decline marks one of the worst days for Walgreens shares since June 27, when the stock plummeted over 20% due to disappointing earnings and guidance. Additionally, it was reported by the Wall Street Journal that Walgreens planned to close underperforming stores and reduce its stake in primary-care provider VillageMD.
As the worst performer in the S&P 500 on Tuesday, Walgreens shares have dropped more than 63% year-to-date. However, for potential investors looking to buy the stock at its current price, there is a silver lining – a substantial dividend yield of nearly 12%, as reported by FactSet.
In other news, Eli Lilly & Co. announced a significant discount on its popular weight-loss drug Zepbound, which seemed to impact the shares of both Walgreens and rival CVS Health Corp.
Analysis:
The plummeting stock price of Walgreens is a concerning sign for investors, indicating ongoing struggles for the pharmacy chain. With a substantial dividend yield, some may see an opportunity to invest at a lower price. However, the company’s recent performance and the impact of external factors like the discounted drug offer from Eli Lilly & Co. should be carefully considered before making any investment decisions.