The following commentary comes from an independent investor or market observer as part of TheStreet's guest contributor program, which is separate from the company's news coverage.
NEW YORK ( Trefis) -- Walgreen (WAG) announced its second-quarter results last week. The earnings beat analyst expectations even though the number of prescriptions filled at comparable stores fell by 8% to 9% as a result of the drug retailer walking out of Express Scripts network this year. What is generating more curiosity is the future of Walgreen's business with Medco now that the FTC has approved the Express Scripts-Medco deal.
The company's management indicated in its latest earnings call that it hopes to maintain its relationship and contracts with Medco. Others speculate that Walgreen may hammer out a fresh deal with Express Scripts soon. This certainly bodes well for WAG stock which currently trades at $35, and has lost almost a quarter of its value since its impasse with Express Scripts in June 2011. Walgreen competes with CVS Caremark (CVS) and Rite Aid (RAD).
View our analysis for
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV