Should You Buy Walgreens Boots Alliance (WBA) Stock Before Earnings? Here’s What You Need to Know

Walgreens Boots Alliance (WBA) is gearing up for its earnings report—and investors are eyeing the stock like bargain hunters at a pharmacy clearance sale. But is it a smart buy before the numbers drop?

The Bull Case: Prescription for Growth?

With healthcare spending on the rise and an aging population, WBA could see a boost. The stock’s recent dip might look like a discount—if you ignore the retail apocalypse lurking in the background.

The Bear Case: Sickly Performance

Same-store sales have been coughing up bad news, and Amazon’s creeping into pharmacy territory. If earnings miss, this stock could need a life support.

Bottom Line: Dose of Reality

WBA isn’t a meme stock—it’s a long-play with risks. If you’re betting on a turnaround, pack patience. Or just buy crypto and skip the earnings drama altogether.

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That performance was driven largely by strong results in the U.S. pharmacy segment (its largest segment, as per the image below from Main Street Data), which benefited from branded drug inflation and a higher volume of prescriptions. Still, front-end retail sales have continued to show weakness, and investors will be watching to see if pharmacy strength alone can support overall revenue in Q3.

Beyond earnings, Walgreens is working through a turnaround strategy that includes store closures and a tighter focus on its pharmacy and healthcare operations. The company also recently pulled its full-year guidance due to a potential buyout by private equity firm Sycamore Partners, which has created uncertainty around long-term expectations. Nevertheless, analysts currently estimate full-year earnings of around $2.00 per share, with next year’s figure potentially closer to $1.00. Investors will be listening for updates on that deal, as well as how management plans to sustain earnings during its transition.

What Do Options Traders Anticipate?

Using TipRanks’ Options tool, we can see that options traders are expecting a 1.85% MOVE from WBA stock in either direction right after its earnings report. The expected earnings move is determined by calculating the at-the-money straddle of the options closest to expiration after the earnings announcement.

It’s worth noting that WBA’s after-earnings price moves in the past 12 quarters have mostly been larger than the 1.85% that is expected. This implies that current option prices might be undervalued.

Is WBA Stock a Good Buy?

Turning to Wall Street, analysts have a Hold consensus rating on WBA stock based on two Holds assigned in the past three months, as indicated by the graphic below. Furthermore, the average WBA price target of $11.50 per share implies that shares are trading NEAR fair value.