Earnings Play: Walgreens Boots Alliance
Jason Lubin July 9, 2020 1:02 AM
Walgreens' 3Q earnings release is expected on Thursday. Here is what to look out for.
On Thursday, before market, Walgreens Boots Alliance (WBA) is anticipated to report third quarter EPS of $1.17 compared to $1.47 a year ago on revenue of approximately $34.5B vs. $34.6B last year. The company is a global leader in retail and wholesale pharmacy, and on July 8th, Walgreens' and VillageMD announced that Walgreens will be the first pharmacy chain in America to have full-service doctors co-located at 500 to 700 stores nationwide.
Looking at a daily chart, on Monday, July 6th, Walgreens's stock price broke to the upside of a short-term symmetrical triangle pattern that began to form in early-June. The RSI has been holding around its neutrality area at 50. In mid-June the 20-day moving average crossed above the 50-day moving average for the first time in 2020, a bullish signal. Price made a higher low around $39.50 compared to the low of the year at $36.50. The blue lines on the chart represent a potential measured move from the highest peak to the lowest trough of the symmetrical triangle pattern. Price may continue to rise on a path that could lead it to the $50.50 level. If price reverses and falls below its most recent low of $39.50, then price could likely fall back to its yearly low of $36.50.
Source: GAIN Capital, TradingView
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