New Trade for October 12th, 2020

Futures are pointing to a higher open this morning, adding to last week’s gains.  Hopes for additional coronavirus stimulus supported stocks last week.  The White House on Friday increased its offer to $1.8 trillion, only $400 billion short of the most recent Democratic bill.

This will be an eventful week.  Major banks are set to report earnings this week with J.P. Morgan Chase and Citigroup kicking things off tomorrow.   The much anticipated iPhone (AAPL)reveal comes tomorrow as well, after being delayed a month due to coronavirus disruptions.  

Value stocks in most sectors and industries have struggled this year, but value stocks have a history of outperforming during periods of economic expansion.  With valuations depressed, and a new bull market possibly in the wings, now may be the perfect time to consider this turnaround stock.  

Walgreens Boots Alliance (WBA) has been hurt by slower foot into its stores from the COVID-19 pandemic.  At just a little bit north of 7 times Wall Street’s profit consensus for 2021, this dividend aristocrat may be a steal.    

Walgreens is making hefty investments in digitization and convenience by prioritizing its direct-to-consumer online sales.  The company is also partnering with VillageMD to create up to 700 full service medical clinics located at Walgreens stores.  Not to mention the opportunity for organic growth from the company’s higher-margin pharmacy segment as aging America will require more maintenance therapies.  
WBA has raised its base annual payout for 44 consecutive years, meaning its 5.1% yield is rock solid. 


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