Walgreen Company (WAG): Today's Featured Services Winner

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Walgreen Company ( WAG) pushed the Services sector higher today making it today's featured services winner. The sector as a whole closed the day up 0.6%. By the end of trading, Walgreen Company rose 64 cents (1.6%) to $41.28 on light volume. Throughout the day, 4.7 million shares of Walgreen Company exchanged hands as compared to its average daily volume of 6.7 million shares. The stock ranged in a price between $40.45-$41.35 after having opened the day at $40.50 as compared to the previous trading day's close of $40.64. Other companies within the Services sector that increased today were: China Auto Logistics ( CALI), up 88.8%, General Employment ( JOB), up 25%, Destination XL Group ( DXLG), up 21.1%, and Casual Male Retail Group ( CMRG), up 21.1%.
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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. Walgreen Company has a market cap of $37.93 billion and is part of the retail industry. The company has a P/E ratio of 18.1, above the S&P 500 P/E ratio of 17.7. Shares are up 9.8% year to date as of the close of trading on Friday. Currently there are eight analysts that rate Walgreen Company a buy, one analyst rates it a sell, and eight rate it a hold.

TheStreet Ratings rates Walgreen Company as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, largely solid financial position with reasonable debt levels by most measures and attractive valuation levels. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the negative front, Innovaro ( INV), down 16.5%, Dick's Sporting Goods ( DKS), down 10.8%, Armco Metals Holdings ( CNAM), down 10.4%, and China Metro-Rural Holdings ( CNR), down 9.9%, were all laggards within the services sector with Tiffany ( TIF) being today's services sector laggard.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the services sector could consider iShares Dow Jones US Cons Services ( IYC) while those bearish on the services sector could consider ProShares Ultra Short Consumer Sers ( SCC).

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