Why Walgreens Boots Alliance, Inc. (WBA) Soared on Tuesday

We recently compiled a list of the 10 Stocks Firm Up Amid Cautious Trading. In this article, we are going to take a look at where Walgreens Boots Alliance, Inc. (NASDAQ:WBA) stands against the other stocks.

Wall Street extended its lackluster performance on Tuesday, with two major indices finishing with only slight changes amid a series of key factors keeping investor sentiment neutral.

Only the Dow Jones finished in the green territory, posting a 0.37 percent gain. In contrast, the S&P decreased by 0.47 percent while the tech-heavy Nasdaq fell by 1.37 percent.

During the last trading session, ten companies defied a generally cautious market, albeit posting only modest gains. In this article, we have detailed the reasons behind their stronger performance.

To come up with Tuesday’s top gainers, we considered only the stocks with $2 billion in market capitalization and $5 million in daily trading volume.

A pharmacist discussing the health benefits of a prescription medication with a customer.

Walgreens Boots Alliance, Inc. (NASDAQ:WBA)

Walgreens Boots Alliance, Inc. (NASDAQ:WBA) firmed up for a second day on Tuesday, adding 5.18 percent to close at $11.38 apiece, as investors continued to gobble up shares over brewing reports that its planned acquisition deal with Sycamore Partners is making progress.

On Monday, credit information provider Octus said in its social media handle on X that Morgan Stanley, UBS, and other private lenders are working on a $10 billion package to back Sycamore Partners’ potential buyout.

Recent reports earlier suggested that Sycamore and Walgreens Boots Alliance, Inc. (NASDAQ:WBA)’s negotiations remained alive after being considered mostly dead a few weeks ago.

Reports about the potential acquisition broke out in December last year, with the deal expected to be successfully closed this year.

According to the report, Sycamore “would likely sell off pieces of the business or work with partners.”

In October last year, Walgreens Boots Alliance, Inc. (NASDAQ:WBA) announced that it was closing around 1,200 stores over the next three years, including 500 for this year alone, as it scrambles to turn around its ailing business.

Overall WBA ranks 6th on our list of Tuesday’s top gainers. While we acknowledge the potential of WBA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than WBA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.