NEW YORK (TheStreet) -- Walgreen's (WAG) was in the green Wednesday thanks in large part to its pharmacy business. Iinvestors on StockTwits.com are betting its growth is a sign of gains for the baby boomer-fueled drug store industry.
Walgreen's stock rose more than 4% to just below $75 after it revealed that May sales grew 6% from the same period a year ago to $6.57 billion. Same-store sales rose 4.4%.
Walgreen $WAG may comp sales rose 4.4% vs. Exp. up 4.1%? FinancialJuice (@FinancialJuice) Jun. 4 at 08:01 AM
Walgreen attributed the growth to a spike in pharmacy sales. May pharmacy sales jumped 7.9% and accounted for 64.2% of total sales for the month. Prescriptions filled at comparable stores jumped 4%.
The same-store sales data added to positive momentum from analyst notes. Goldman Sachs analysts maintained a "conviction buy" rating today and increased their price target $1 to $80-per-share. Goldman analyst Robert Jones cited prescription growth as a reason for the bullishness. Morgan Stanley reiterated an overweight rating on the stock earlier this week.
Most investors on StockTwits.com predicted Walgreens shares would rise. Sentiment is 100% bullish, according to site analytics. CVS Caremark (CVS) and Rite Aid (RAD) also rose after the Walgreen release.