$WBA Walgreens continues to run up, nearly 52% in the last 45 trading days. Its looking squeezy and is still in the 1990's valuations. This is starting to look like Meta. I have two big thesis points why I think into 2027 Walgreens could easily be a 5 bagger.  
These points could come quick causing a pretty big squeeze.           
                                                                                                    
Thesis 1: Medicare Advantage Payment Increase
The proposed 4.33% Medicare Advantage payment increase for 2026, totaling $21 billion, is a game-changer for Walgreens ($WBA). This increase will likely boost healthcare utilization, driving higher prescription volumes and greater demand for Walgreens' healthcare services. More prescriptions and higher store traffic mean stronger financials for Walgreens. At a dirt-cheap stock price of $11.82  near 1990's valuations but that target could be way too conservative if these payment increases materialize. Walgreens is positioned to ride the wave of healthcare growth, which shorts are clearly underestimating.

Thesis 2: PBM Reform Could Cripple the Middleman
The Trump administration has been highly vocal about dismantling the power of pharmacy benefit managers (PBMs), calling them "the horrible middleman." Walgreens has been hit hard by PBM pressures, with gross margins dropping from 28.2% in 2014 to 17.9% in 2024. But if Trump follows through on PBM reform, Walgreens' margins could recover, boosting profits. Here's the kicker: the short interest in $WBA is elevated, and any move toward policy change could spark a massive short squeeze. Reduced PBM influence means Walgreens keeps more of the prescription revenue, improves competitive positioning, and grows its bottom line. This stock looks ready to rip on policy changes—and shorts might not see it coming.