The first thing that jumps out on this chart is the false breakdown in late October, followed by signs of a higher low this month. Notice how WBA knifed under $34 before spiking back above $44.
Next, where are prices stabilizing? The current level around $38 is important for two reasons. First, it roughly matches the peaks October 16-23. Second, it’s on top of the downward sloping . That means WBA could be finding new support at old resistance.
Third, the 50-day ( ) has turned positive and the stock is now bouncing at it.
Stochastics show an oversold condition as well.
Finally, the long-term momentum has been improving. has been rising on the weekly chart for more than a year – even as prices made lower lows. That’s .
WBA fell last week after Amazon.com launched its Pharmacy service. However the fundamental story showed a surprising turnaround last quarter. Speaking of fundamentals, WBA's forward is in the single digits. That makes it a potential “value stock,” which is the kind of name investors are now seeking.
TradeStation is a pioneer in the trading industry, providing access to stocks, options, and cryptocurrencies. See our Overview for more.
Since your post is about value investing, I think the answer for this stock is a NO. Here are the reasons, why:
- Book value is declining 2 years in a row
- Net income is seriously falling while revenue is growing
- EPS is falling, it is less than the dividend paid
- Right now the share is overpriced, above the limit price suggested by Ben Graham, Warren Buffett (PE x Price/Bookvalue < 22.5)
- The company just got seriously indebted in the recent financial year. Debt to equity ratio is almost 2 (the company has 2 times more debt than equity)
All these points make this stock/company a risky investment for the long run. Might be an applicant for short term trading though.