Dividend.com: Ailing Walgreens

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."