Cramer recommends buying Walgreens stock despite recent walkout

Walgreens Boots Alliance Inc (NASDAQ: WBA) has lost a whopping 40% this year but famed investor Jim Cramer is convinced that the stock will start to recover from here on.

Walgreens pharmacists recently walked off the job

Earlier this week, the second-largest U.S. pharmacy chain saw pharmacists at over 200 of its locations walk off the job citing unsafe working conditions.

Hundreds of additional stores are also expected to join the walkout by the end of this week, as per one of its pharmacists that talked to Fox Business on Wednesday.

The walkout arrives at a time when Walgreens Boots Alliance is already struggling with earnings growth. It is expected to see a per-share profit of 68 cents in its fourth financial quarter (report expected tomorrow) versus 80 cents per share a year ago.

Why is Jim Cramer bullish on Walgreens Boots Alliance?

But none of the above is enough for Jim Cramer to not recommend investing in Walgreens Boots Alliance that is committed to expanding its footprint in health services.

His constructive view is primarily based on leadership of the industry veteran Tim Wentworth who was named Chief Executive of the Nasdaq-listed firm only recently. Wentworth is slated to join on October 23^rd. On CNBC’s “Squawk on the Street”: the Mad Money host said today:

I like Wentworth. There’s now hope for a stock that I had no hope for. This guy is the real deal. I think he can take you to higher price. The stock should be bought, perhaps aggressively.

Note that his Charitable Trust does not have a position in Walgreen Boots Alliance which the Wall Street currently rates at “hold”.

I had a question on why and if I’m scared of investing in $WBA (Walgreens) from @DarrenPowell2

Here’s why I’m not…

Sure I saw the news on $WBA and the stock is in the complete shitter rn, but $WBA is at the same price it was at in March 2009 which was a MAJOR demand area… pic.twitter.com/ATpvks18CK

— Rensing Trades (@RensingTrades) October 11, 2023

Who is Jim Cramer?

Jim Cramer is a former hedge fund manager who is now best known as the host of Mad Money – a finance television programme that airs on CNBC.

What is Jim Cramer famous for?

Jim Cramer is primarily famous for his investment advice on CNBC’s Mad Money. He co-anchors another show on the business news channel as well called Squawk on the Street. Jim Cramer also co-founded TheStreet.com in 1996.

What is Jim Cramer’s net worth?

According to Money Inc, Jim Cramer is currently worth more than $150 million. CNBC pays him an annual salary of $5.0 million for hosting Mad Money, as per Trader Lion.