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

Walgreen's: Baby Boomer Play That Continues to Pay:

NEW YORK (TheStreet) -- Walgreen's (WAG) was in the green Wednesday thanks in large part to its pharmacy business. Iinvestors on are betting its growth is a sign of gains for the baby boomer-fueled drug store industry.

Walgreen's stock rose more than 4% to just below $75 after it revealed that May sales grew 6% from the same period a year ago to $6.57 billion. Same-store sales rose 4.4%.

$WAG the dog. Strong May sales for Walgreen. $WAG up more than 3%. All-time high. $CVS up a little bit as well.

? Paul La Monica (@lamonicabuzz) Jun. 4 at 10:55 AM

Walgreen $WAG may comp sales rose 4.4% vs. Exp. up 4.1%

? FinancialJuice (@FinancialJuice) Jun. 4 at 08:01 AM

Walgreen attributed the growth to a spike in pharmacy sales. May pharmacy sales jumped 7.9% and accounted for 64.2% of total sales for the month. Prescriptions filled at comparable stores jumped 4%.

The same-store sales data added to positive momentum from analyst notes. Goldman Sachs analysts maintained a "conviction buy" rating today and increased their price target $1 to $80-per-share. Goldman analyst Robert Jones cited prescription growth as a reason for the bullishness. Morgan Stanley reiterated an overweight rating on the stock earlier this week.

Walgreen Company's overweight rating reiterated at Morgan Stanley. $75.00 PT. $WAG

? Analyst Ratings Network (@AnalystRatingsNetwork) Jun. 2 at 08:32 AM

Most investors on predicted Walgreens shares would rise. Sentiment is 100% bullish, according to site analytics. CVS Caremark (CVS) and Rite Aid (RAD) also rose after the Walgreen release.

Investors on debated whether the gains in the competing pharmacy chains were warranted. After all, Walgreens could have outperformed by taking some of CVS or Rite Aid's business.

Most investors, however, believe that the entire sector will show strong growth due to an aging American population that requires more prescriptions to feel strong and healthy. Sentiment on Rite Aid is 90% bullish, according to site analytics. Sentiment on CVS is also positive.

$RAD Baby boomers are getting older and will require more meds, good 1-5 year hold. Lots of growth in this stock $WAG $CVS

? Dustin shell (@Dshizzle) Jun. 1 at 09:08 PM

Baby boomer play continues to pay.. $cvs $wag $RAD

? lumberjax (@lumberjax) May. 22 at 04:53 PM

At the time of publication, the author held no positions in any of the stocks mentioned.

This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.

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
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
Only $49.95
14-Days Free
14-Days Free
WAG $81.65 2.05%
AAPL $93.24 -0.41%
FB $117.81 -0.21%
GOOG $701.43 0.82%
TSLA $211.53 -4.96%


Chart of I:DJI
DOW 17,660.71 +9.45 0.05%
S&P 500 2,050.63 -0.49 -0.02%
NASDAQ 4,717.0940 -8.5450 -0.18%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs