Critics indicate that the pharmacy chain could do a better job revamping its stores on its own.
Drug store chain Walgreens appears to be a bargain given its P/E ratio of 18.07 and dividend yield of 2.45%.
Of course the answer is Amazon, which is behind a lot of the latest moves in the health care space.
The move could spur a price war, pressuring margins at rivals CVS, Walgreens and Rite Aid.
Albertson and Rite Aid are inking a deal in an effort to push back the likes of Amazon and Walmart.
Billionaires investors like Ray Dalio and Larry Robbins were bullish on Walgreens in Q4, 13F filings indicate.
Walgreens has a market-neutral P/E ratio of 19.21, and the drug store giant has a modest dividend yield of 2.10%.
Rite Aid is not a profitable company, so it does not have a P/E ratio, but it trades at $1 to $3 per share as an "option on survival."
Without a major acquisition, the pharmacy industry is too complex for Amazon, says WBA's CEO.
One source says the company is exploring whether to enter the drug purchasing market.