Shares of Walgreens Boots Alliance (NASDAQ: WBA) rocketed 27.5% higher on Friday, Jan. 10, 2024. Investors of all stripes are wondering whether more gains could be ahead for the beaten-down retail pharmacy chain operator.

Walgreens was the worst stock in the S&P 500 last year. An analyst writes that it’s still “premature to say that Walgreens is on a stable path to growth” despite upbeat earnings.

Shares of Walgreens Boots Alliance were trading sharply higher after the retail pharmacy chain reported strong quarterly earnings. For its fiscal first quarter ended Nov. 30, Walgreens reported adjusted earnings of 51 cents a share,

Walgreens Boots Alliance posted a wider quarterly loss, hit by the costs of closing stores and weaker retail sales, but shares surged after a smaller-than-expected drop in adjusted earnings. Walgreens shares soared more than 28% to$11.

Walgreens stock is soaring Friday after the embattled pharmacy chain reported strong earnings and gave an upbeat outlook.

Walgreens Boots Alliance Inc.’s stock jumped 10% early Friday after the troubled drugstore chain posted another loss but blew past estimates on an adjusted basis and said it would continue to work on a turnaround.

The company's turnaround plan will continue, and though Walgreens CEO Tim Wentworth said it will take time, he also said "our early progress reinforces our belief in a sustainable, retail pharmacy-led operating model.