New Lifetime High Today: Walgreen Company (WAG)

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 a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Walgreen Company as such a stock due to the following factors:

  • WAG has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $289.8 million.
  • WAG has traded 4.0 million shares today.
  • WAG is trading at a new lifetime high.

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More 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 2.3%. WAG has a PE ratio of 24.4. Currently there are 11 analysts that rate Walgreen Company a buy, 1 analyst rates it a sell, and 6 rate it a hold.

The average volume for Walgreen Company has been 5.2 million shares per day over the past 30 days. Walgreen has a market cap of $52.3 billion and is part of the services sector and retail industry. The stock has a beta of 1.16 and a short float of 2.1% with 3.74 days to cover. Shares are up 49.7% year to date as of the close of trading on Friday.

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, growth in earnings per share, compelling growth in net income, good cash flow from operations and solid stock price performance. We feel these strengths outweigh the fact that the company shows low profit margins.

Highlights from the ratings report include:
  • WAG's revenue growth has slightly outpaced the industry average of 2.4%. Since the same quarter one year prior, revenues slightly increased by 5.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • 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 ($3.50 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 86.1% when compared to the same quarter one year prior, rising from $353.00 million to $657.00 million.
  • Net operating cash flow has increased to $1,123.00 million or 46.22% when compared to the same quarter last year. In addition, WALGREEN CO has also vastly surpassed the industry average cash flow growth rate of -5.68%.
  • Powered by its strong earnings growth of 76.92% and other important driving factors, this stock has surged by 63.99% over the past year, outperforming the rise in the S&P 500 Index during the same period. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.

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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