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

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 lower today making it today's featured Services laggard. The sector as a whole closed the day down 1.6%. By the end of trading, Walgreen Company fell 51 cents (-1%) to $48.55 on light volume. Throughout the day, 4.8 million shares of Walgreen Company exchanged hands as compared to its average daily volume of 6.5 million shares. The stock ranged in price between $48.26-$49.24 after having opened the day at $48.97 as compared to the previous trading day's close of $49.06. Other companies within the Services sector that declined today were: Bluefly ( BFLY), down 38.4%, InnerWorkings ( INWK), down 25.3%, dELiA*s ( DLIA), down 19.7%, and Ambassadors Group ( EPAX), down 15.2%.
  • EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

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 $46.07 billion and is part of the retail industry. The company has a P/E ratio of 21.7, above the S&P 500 P/E ratio of 17.7. Shares are up 32.6% year to date as of the close of trading on Tuesday. Currently there are 10 analysts that rate Walgreen Company a buy, one analyst rates it a sell, and five 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 increase in net income, good cash flow from operations, largely solid financial position with reasonable debt levels by most measures, solid stock price performance and growth in earnings per share. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

On the positive front, NTN Buzztime ( NTN), up 9.2%, Marten Transport ( MRTN), up 6.5%, Infoblox ( BLOX), up 5.3%, and WNS holdings ( WNS), up 5.2%, were all gainers within the services sector with GameStop ( GME) being today's featured services sector leader.

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).

Exclusive Offer: Jim Cramer's 'go-to' small/mid-cap guru Bryan Ashenberg only buys stocks he thinks could return 50-100% See his top picks for 14-days FREE.

null

More from Markets

Video: Jim Cramer on the Markets, Tiffany, Micron Technology and Union Pacific

Video: Jim Cramer on the Markets, Tiffany, Micron Technology and Union Pacific

Red Robin Slumps After Earnings Miss

Red Robin Slumps After Earnings Miss

Stocks Trade Lower as Optimism Wanes Over China Trade Talks

Stocks Trade Lower as Optimism Wanes Over China Trade Talks

Comcast Considering All-Cash Bid for Fox as Disney Battle Heads to the Wire

Comcast Considering All-Cash Bid for Fox as Disney Battle Heads to the Wire

Target's Stock Tanks After Q1 Earnings Miss and Slowing Sales

Target's Stock Tanks After Q1 Earnings Miss and Slowing Sales