Walgreen Company (WAG): Stock With Unusual Social Activity
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.Trade-Ideas LLC identified Walgreen Company (WAG) as an unusual social activity candidate. In addition to specific proprietary factors, Trade-Ideas identified Walgreen Company as such a stock due to the following factors:
- WAG has 15x the normal benchmarked social activity for this time of the day compared to its average of 3.73 mentions/day.
- WAG has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $503.6 million.
Identifying stocks with 'Unusual Social Activity' tends to be a valuable process for traders looking to capitalize on the 'talk of the town' stocks that are basking in far more attention from the StockTwits financial community than normal. Good press? Bad press? It ultimately doesn't matter if it's good or bad if you know how to trade around the sentiment. Certain hedge funds use such data for their proprietary algorithms and it is not uncommon to see shared social sentiment play itself out in a stock's price trend.EXCLUSIVE OFFER: Get the inside scoop on opportunities in WAG with the Ticky from Trade-Ideas. See the FREE profile for WAG NOW at Trade-IdeasMore details on WAG: Walgreen Co., together with its subsidiaries, operates a network of drugstores in the United States. It provides consumer goods and services, pharmacy, and health and wellness services through drugstores, as well as through mail, and by telephone and online. The stock currently has a dividend yield of 2.1%. WAG has a PE ratio of 21.3. Currently there are 13 analysts that rate Walgreen Company a buy, 1 analyst rates it a sell, and 8 rate it a hold.The average volume for Walgreen Company has been 6.0 million shares per day over the past 30 days. Walgreen has a market cap of $57.6 billion and is part of the services sector and retail industry. The stock has a beta of 1.11 and a short float of 2.2% with 2.43 days to cover. Shares are up 11.8% year-to-date as of the close of trading on Tuesday.STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.TheStreetRatings.com Analysis:TheStreet Quant Ratings rates Walgreen Company as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, impressive record of earnings per share growth, compelling growth in net income and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows weak operating cash flow.Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 6.7%. Since the same quarter one year prior, revenues slightly increased by 5.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Powered by its strong earnings growth of 67.44% and other important driving factors, this stock has surged by 42.90% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, WAG should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- WALGREEN CO reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, WALGREEN CO increased its bottom line by earning $2.56 versus $2.42 in the prior year. This year, the market expects an improvement in earnings ($3.48 versus $2.56).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Food & Staples Retailing industry. The net income increased by 68.3% when compared to the same quarter one year prior, rising from $413.00 million to $695.00 million.
- WAG's debt-to-equity ratio is very low at 0.25 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.42 is very weak and demonstrates a lack of ability to pay short-term obligations.
- You can view the full Walgreen Company Ratings Report.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
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