To fight off the title of worst-performing stock on the S&P 500, Walgreens (WBA) gained nearly 20% last week. On Dec. 10, 2024, the business media reported that Sycamore Partners wanted to buy the firm.
On Friday, Dec. 13, Sky News reported that Sycamore Partners is inviting lenders to help it raise $10 billion. WBA stock closed with a market capitalization of $8.98 billion.
Investors do not have much to lose speculating on the drugstore. At current levels, the stock pays a dividend that yields 9.62%. When it reports quarterly results next month, management will update shareholders on the progress of its 1,200 store closures. It will need to solidify its liquidity levels by forming joint ventures. That would lower its operating costs while improving its store’s offerings.
In the health insurance market, UnitedHealth (UNH) traded close to levels not seen since May. Social media expressed support for the suspect involved in the fatal shooting of an executive. Claims that UNH had the highest denial rates are false since such data is not publicly available.
UNH stock could spike lower as the market corrects its premium. The price/cash flow and price/book are nearly double that of the sector median. Still, this firm is the best-of-breed stock compared to CVS Health (CVS), Humana (HUM), or Cigna (CI).