Failed Breakouts (QQQ $400, IWM $200), WBA: Good Enough
Needless to say this is not the start to the year the crowd was expecting. Everything was breaking out at the end of last year but two of the most important ETFs in the market have failed to hold their breakout levels in the first two days of the New Year. QQQ has fallen back below $400 and IWM $200. Perhaps this is just a correction after things got a little euphoric – or perhaps not.
Walgreens (WBA) just reported a “good enough” quarter and I suspect the stock has now put in a sustainable bottom at $20. While WBA cut their quarterly dividend from 48 cents to 25 cents, they maintained FY24 EPS guidance of $3.20-$3.50. In other words, WBA is a very cheap stock at less than 8x current year guidance. My hope is that new CEO Tim Wentworth can stabilize things. If so, the stock should surpass $30 this year.