Out Fox The $treet

Walgreens fell by 8% following disappointing FQ3 results. The company was hit by higher cleaning costs and weaker U.K. Boots sales. The stock now offers a 4.8% dividend yield while trading at only 7x normalized EPS estimates. Walgreens Boots Alliance  (NASDAQ: WBA ) has too slowly transitioned to the digital realities of the modern retail environment, but the stock drop after  FQ3 results  was a clear overreaction. The quarterly results weren't as bad as the stock reaction for a stock already down about 20% from the previous highs. My  investment thesis  is more bullish on the stock following this dip below $40, as Walgreens Boots gets more aggressive with its digital plans and expands into more personalized healthcare services after a slow start. Read the full article on Seeking Alpha.  Disclosure: No position mentioned. Please review the disclaimer page for more details. 

As investors were warned,  Rite Aid (RAD)  was only going to head lower following the 1-for-20 reverse split. The company provided the following financial targets for FY20: Sales to be between $21.5 billion and $21.9 billion in fiscal 2020  Same store sales expected to range from an increase of 0.0 percent to an increase of 1.0 percent over fiscal 2019. Net loss is expected to be between $170.0 million and $220.0 million.   Adjusted EBITDA is expected to be between $500.0 million and $560.0 million.   Adjusted net (loss) income per share is expected to be between a loss of $0.01 and income of $0.04. These are not the numbers investors want to see in a competitive environment where  Walgreens (WBA)  and  CVS Health (CVS)  are already dealing with competitive impacts from  Amazon (AMZN)  entering the pharmacy space. The likelihood of Rite Aid recovering isn't very high. Avoid or short the stock that k...