Why is Walgreens Boots Alliance, Inc. stock outperforming the market?

Walgreens Boots Alliance (WBA) has experienced a mixed market performance, with a notable revenue growth rate of 7.5% as of November 30, 2024, surpassing expectations and outperforming peers in the Consumer Staples sector. However, the company faces challenges with its debt management, as indicated by a debt-to-equity ratio higher than the industry average, suggesting increased financial risk. Analysts have adjusted their ratings and price targets, with the average 12-month price target for WBA increasing by 8.1% to $11.08, ranging from a high of $13.00 to a low of $8.50. WBA is implementing strategic changes, including a footprint optimization program that plans to close approximately 1,200 stores over the next three years to drive long-term value creation. CEO Tim Wentworth remains confident in the company's strategic turnaround. Additionally, WBA is in acquisition discussions with private-equity firm Sycamore Partners, which could lead to the company being taken private and has contributed to stock volatility. While WBA shows revenue growth, it continues to navigate strategic and financial challenges, with analysts emphasizing the need for clarity on strategic initiatives and asset management.