Walgreen Company (WAG): Today's Featured Retail Laggard

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 Retail industry lower today making it today's featured Retail laggard. The industry as a whole was unchanged today. By the end of trading, Walgreen Company fell $1.31 (-2.7%) to $47.81 on average volume. Throughout the day, 7,514,788 shares of Walgreen Company exchanged hands as compared to its average daily volume of 6,300,800 shares. The stock ranged in price between $47.72-$49.20 after having opened the day at $49.12 as compared to the previous trading day's close of $49.12. Other companies within the Retail industry that declined today were: dELiA*s ( DLIA), down 10.9%, Gaiam Inc. Class A ( GAIA), down 10.0%, China Jo-Jo Drugstores ( CJJD), down 8.6% and U.S. Auto Parts Network ( PRTS), down 6.7%.
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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 $46.6 billion and is part of the services sector. The company has a P/E ratio of 22.0, above the S&P 500 P/E ratio of 17.7. Shares are up 32.7% year to date as of the close of trading on Wednesday. Currently there are 10 analysts that rate Walgreen Company a buy, 1 analyst rates it a sell, and 5 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, Liberty Interactive ( LINTB), down 7.7%, Acorn International ( ATV), down 7.3%, Christopher & Banks Corporation ( CBK), down 6.4% and Wet Seal ( WTSL), down 5.7% , were all gainers within the retail industry with Michael Kors Holdings ( KORS) being today's featured retail industry leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the retail industry could consider SPDR S&P Retail ETF ( XRT) while those bearish on the retail industry could consider ProShares Ultra Sht Consumer Goods ( SZK).

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