Wait for the New CEO to Get His Feet Wet Before You Trust Too Much in Walgreens' Guidance
Pharmacy giant Walgreens (NASDAQ: WBA) has been going through a huge business transition over the last few years. In mid-2023, things really started to change at the company, with a CFO transition announced in late July and the abrupt departure of the CEO announced at the start of September. There was no replacement for the CEO at the time. Now that there is a new CEO in place, investors should appreciate that there are a lot of moving parts right now.
For many years, Walgreens has been looking for a way to grow. At one point the hope was that entering the pharmacy benefits management business would be the right move. It wasn't, and the company ended up selling the dedicated division it built up. It then shifted to creating a business around medical services, basically buying and building medical clinics in and near its pharmacies. Peer CVS (NYSE: CVS) is taking a similar approach.
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Source Fool.com
