Walgreen Company (WAG) Down In Early Morning Trading

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 pre-market laggard 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 $325.5 million.
  • WAG traded 193,025 shares today in the pre-market hours as of 8:40 AM.
  • WAG is down 2.2% today from yesterday's close.

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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 2.2%. WAG has a PE ratio of 22.0. Currently there are 12 analysts that rate Walgreen Company a buy, 1 analyst rates it a sell, and 7 rate it a hold.

The average volume for Walgreen Company has been 5.7 million shares per day over the past 30 days. Walgreen has a market cap of $53.4 billion and is part of the services sector and retail industry. The stock has a beta of 1.21 and a short float of 1.8% with 2.66 days to cover. Shares are up 54.9% year-to-date as of the close of trading on Wednesday.

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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, solid stock price performance, growth in earnings per share, compelling growth in net income and good cash flow from operations. 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 4.2%. 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.
  • Powered by its strong earnings growth of 76.92% and other important driving factors, this stock has surged by 79.26% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, WAG should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • 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 ($3.54 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 -45.61%.

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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