This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

5 Blue-Chip Stocks Ready for Buyers


Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

2003 Sales: $32.5 billion

2012 Sales: $72.2 billion

2003 EPS $1.13

2011 EPS: $2.64

You've likely noticed that there are a lot more drugstores in your neighborhood than there were a decade or two ago. For many consumers, short trips to the grocery store have been replaced by trips to the druggists, which now stock many items a grocer would anyway.

Walgreen (WAG), which operates 7,900 drugstores across the U.S, has been a clear beneficiary of the trend. Sales, operating cash flow and net profits have all risen in lockstep over the years, hitting record levels in 2011. Yet shares, trading at a recent $35, are actually the peaks seen a decade ago. That's because investors fret that growth will invariably slow as the drugstore sector get saturated.

However, Walgreen still has a few arrows left in its quiver: The company should continue to benefit from the ongoing migration towards generic drugs (which carry higher profit margins for drugstores). And this is an industry that continues to consolidate: management aims to keep profits growing through the pursuit of accretive acquisitions.

Shares, which traded for 35 times trailing earnings back in 2003 now trade for a much more reasonable 13 times trailing earnings.


Follow Stockpickr on Twitter and become a fan on Facebook.
Stockpickr is a wholly owned subsidiary of
6 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
WAG $81.65 2.05%
CSCO $22.89 0.00%
F $11.45 0.00%
IPG $21.08 0.00%
LUV $35.69 0.00%


Chart of I:DJI
DOW 16,204.97 -211.61 -1.29%
S&P 500 1,880.05 -35.40 -1.85%
NASDAQ 4,363.1440 -146.4150 -3.25%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs