In this article, we discuss the 5 stocks losing value today. If you want to read our detailed analysis of these companies, go directly to These 10 Stocks are Losing Value Today.
5. Walgreens Boots Alliance, Inc. (NASDAQ:WBA)
Number of Hedge Fund Holders: 38
Shares of Walgreens Boots Alliance, Inc. (NASDAQ:WBA) hit a new 52-week low of $38.57 on Thursday morning after announcing the financial results for its fiscal third quarter. The Illinois-based company reported adjusted earnings of 96 cents per share, down 30 percent versus the same period of 2021.
Its quarterly revenue also slipped 4.2 percent on a year-over-year basis to $32.6 billion. Walgreens Boots Alliance, Inc. (NASDAQ:WBA) blamed the fading demand for coronavirus vaccinations for weak sales.
Earlier this year, investment management firm Aristotle Capital Management talked about Walgreens Boots Alliance, Inc. (NASDAQ:WBA) in its first-quarter 2022 investor letter, stating:
“We first invested in Walgreens Boots Alliance in early 2013. Over our holding period, Walgreens merged with U.K.-based Boots Alliance, establishing itself as a global leading retail pharmacy chain. CEO Stefano Pessina set the company on a path of pursuing strategic partnerships (as opposed to vertical integration deals) to increase store traffic and to, over time, transform the business into a neighborhood health destination around a more modern pharmacy. Using its strong FREE cash flow generation, the company ramped up its investments in technology, aiming to accelerate the digitalization of health information. Mr. Pessina was not successful, however, at turning around the firm’s U.S. retail segment and had to deal with increasing prescription drug reimbursement pressures. He stepped down as CEO in 2020, and in 2021, Roz Brewer took the reins of the firm. We admire Ms. Brewer’s impressive track record at companies that include Starbucks (NASDAQ:SBUX) and Walmart (Sam’s Club). However, given management’s decision to divest core cash-generative businesses and redeploy capital to embryonic healthcare startups, we prefer to step aside while we follow the company’s progress.”