Dividend.com: Ailing Walgreens
Tom Reese and Paul Rubillo
01/08/09 - 02:42 PM EST
Walgreens Cutting Management Positions, Shares Flat
Walgreens(WAG Quote) shares are trading flat on the day so far, after announcing plans to eliminate about 1,000 corporate and field management jobs this year.
The company is enabling eligible employees to voluntarily resign or retire from the company with both severance pay and benefits coverage based on years of service and retirement eligibility.
We have avoided shares of Walgreens since our early June coverage began, when the stock was trading at $35.53. The company has a 1.66% dividend yield, based on last night's closing stock price of $27.03. The stock has long-term technical support around the $19 level, with overhead resistance coming in at the $29 to $30 area. Despite its dominance in the retail drug store space, we would look elsewhere for better investment opportunities at this current time.
Walgreens is not recommended at this time, holding a Dividend.com Rating of 3.2 out of 5 stars.
Shaw Group Beats Estimates by 9 Cents
Shaw Group(SGP Quote) shares are up 17% so far today after beating first quarter EPS estimates by 9 cents.
An "Obama" infrastructure play, as we have talked about in the past, reported revenue that climbed to $1.9 billion from $1.7 billion. Management said the company continues to experience significant bookings, including the engineering, procurement and construction contract to construct two Westinghouse AP1000 nuclear power units for Progress Energy, announced this past week.
The engineering and infrastructure company had a tough 2008, with shares dropping 65%. The company has technical support in the $11 to $13 price area. If the stock can continue its recent strength, we see overhead resistance in the $28 to $34 range.
We currently do not rate this non-dividend-paying stock. We do like a competitor in the space called
Fluor(FLR Quote), which is on our upgrade "watchlist."
Shaw Group does not currently pay a dividend.
Bed Bath & Beyond Third Quarter Profits Fall 36%
Bed Bath & Beyond(BBBY Quote) shares are up slightly so far today, after the company reported profits that fell 36% to $87.7 million, or 34 cents per share. That's down from a year-ago profit of $138.2 million, or 52 cents per share.
Revenue fell slightly to $1.78 billion from $1.79 billion last year. The results were in line with the company's lowered forecast it gave last month.
Looking forward, management sees next quarter's EPS between 40 cents and 46 cents a share. The consensus estimates are for 49 cents.
The company started 2008 at the $29 level -- and was holding steady until late September -- before dropping almost 50% to $16. The company has rebounded over 50% in the last month and is sitting right at overhead resistance levels of $26. The stock has long-term technical support in the $14 to $16 area, if shares begin to slip again. If the stock can stabilize and begin to move up, it could run into overhead resistance at the $33 to $35 area. We do not currently rate this non-dividend-paying stock.
Bed Bath & Beyond does not currently pay a dividend.
Men's Wearhouse Sees Weaker Fourth-Quarter Results
Men's Wearhouse(MW Quote) announced late Wednesday that its earnings will come in at the lower end of its previous estimates for its fiscal fourth quarter.
The company cited weaker performance from its stores in Canada, where sales results were below initial expectations. The company previously projected earnings of breakeven to a loss of 18 cents per share.
We have avoided shares of Men's Warehouse since our early June coverage began, and the stock was trading at $19.80. The company has a 2.09% dividend yield, based on last night's closing stock price of $13.39.
The company is near a $9 support level, and will need to hold. If not, it may head toward the next level of support, which is near $6 a share. If the shares can stabilize and move higher, we see overhead resistance in the $16 to $17 price area. We would look elsewhere at this time for better investment opportunities.
Men's Wearhouse is not recommended at this time, holding a Dividend.com Rating of 2.9 out of 5 stars.
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