Earnings Play: Walgreens Boots Alliance

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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