Deerfield, Illinois-based Walgreens Boots Alliance, Inc. (WBA), is an integrated healthcare, pharmacy, and retail company. With a market cap of $9.5 billion, Walgreens operates through the U.S. Retail Pharmacy, International, and U.S. Healthcare segments.

The pharmaceutical retailer has significantly underperformed the broader market over the past year, but outperformed in 2025. WBA’s stock prices have tanked 37.4% over the past 52 weeks and surged 17.7% on a YTD basis, compared to the S&P 500 Index’s ($SPX) 12.3% gains over the past year and 3.3% decline on a YTD basis.

Narrowing the focus, WBA has underperformed the industry-focused iShares U.S. Pharmaceuticals ETF’s (IHE) 3% rally over the past 52 weeks, while outperforming IHE’s 1.6% gains on a YTD basis.

WBA stock declined 1.1% following the release of its Q2 earnings on Apr. 8. The company reported a 4.1% year-over-year growth in its sales, which amounted to $38.6 billion and topped Street forecasts. However, the company’s adjusted gross profit observed a 1.5% year-over-year decline to approximately $7 billion. WBA’s adjusted operating income also suffered a 12.8% decrease to $785 million. Moreover, its adjusted EPS dropped 47.5% year-over-year to $0.63. Nonetheless, following the initial downturn, WBA stock rebounded 1.8% in the following trading session.

For the current fiscal year 2025, ending in August, analysts expect WBA to report a 42.4% year-over-year decline in adjusted earnings to $1.66 per share. The company has a mixed earnings surprise history. It has surpassed the Street’s bottom-line estimates thrice over the past four quarters, while missing on one other occasion. Its adjusted EPS of $0.63 for the last reported quarter surpassed the consensus estimates by an impressive 18.9%.

WBA holds a consensus “Hold” rating overall. Of the 14 analysts covering the stock, opinions include one “Strong Buy,” 11 “Holds,” one “Moderate Sell,” and one “Strong Sell.”

This configuration is slightly bearish compared to three months ago, when two analysts gave "Strong Buy" recommendations.

On Feb. 28, Deutsche Bank (DB) analyst George Hill downgraded the stock to a “Sell” rating.

WBA’s mean price target of $11.15 indicates a modest 1.5% premium to current price levels, while its Street-high target of $15 suggests a staggering 36.6% upside potential.