Why Walgreens Boots Alliance (WBA) Is Among Tuesday’s Worst Performers?

We recently published a list of 10 Stocks Nosedive, Defying Broader Optimism. In this article, we are going to take a look at where Walgreens Boots Alliance, Inc. (NASDAQ:WBA)  stands against other stocks nosedive, defying broader optimism.

Ten companies—predominantly Bitcoin miners—kicked off this week’s trading on a sour note, bucking an overall market optimism, following the lack of fresh developments to spark buying appetite.

On Tuesday, the Dow Jones rose by 1.24 percent, the S&P 500 rose 0.88 percent, while the Nasdaq Composite increased 0.64 percent.

In this article we will look at Tuesday’s worst performers and explore the reasons behind their drop.

To come up with Tuesday’s top losers, we considered only the stocks with at least $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) saw its shares down by 9.19 percent on Tuesday to close at $11.37 apiece as investors remained cautious following a class action lawsuit by none other than the Justice Department over claims that it was filling millions of unlawful opioid prescriptions.

The suit, which was filed in a court in Illinois on Friday, alleged that Walgreens (NASDAQ:WBA) and its subsidiaries knowingly filled millions of unlawful prescriptions for controlled substances from August 2012 up to the present.

Allegedly, Walgreens (NASDAQ:WBA) and its pharmacies filled prescriptions for dangerous and excessive quantities of opioids, including early refills among other prescriptions despite clear “red flags.”

The lawsuit also alleged that the pharmacy giant ignored substantial evidence from multiple sources that its stores were dispensing unlawful prescriptions, including from its own pharmacists and internal data, the suit claims.

Overall, WBA ranks 6th on our list of stocks nosedive, defying broader optimism. While we acknowledge the potential of WBA as an investment, our conviction lies in the belief that 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.