Every day, the sun rises on Wall Street, and a plethora of professional analysts wake to issue new opinions on stocks. Here at the Fool, we use our "This Just In" column to examine some of these picks -- and the track records of the firms behind them -- so individuals can make better investing decisions.
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More top-performing CAPS members are singing bullish tunes on Walgreen (NYSE: WAG ) these days, enough to upgrade it from its long-held four-star rank to a more formidable five stars. A total of 1,583 investors have given their opinion on Walgreen, with many of them offering analysis and commentary explaining the recent optimism.
No doubt about it, Walgreen has a great track record of growth and shareholder dividends. Not only has the stock appreciated faster than the market in the past decade, but the dividend has grown at an annualized rate of 11.2% in the past 10 years. The company recently upped its dividend again by 18%. Though competitor CVS Caremark (NYSE: CVS ) , which just announced it would purchase Longs Drug Stores (NYSE: LDG ) , also raised its dividend, not all direct competitors have performed as well -- Rite Aid (NYSE: RAD ) has no dividend and significantly lags its peers.
But just as other discount retailers like Target (NYSE: TGT ) and clothing retailers like Macy’s (NYSE: M ) are feeling the weakening economy, Walgreen has struggled in the face of more frugal consumers. Walgreen’s management committed to shape up and reduce high expenses last year, and the effort has delivered a modest but credible 2% rise in year-over-year profits for its fiscal third quarter. And though the ever-encroaching Wal-Mart (NYSE: WMT ) threatens the prescription-drug space, CAPS members still favor Walgreen for its reasonable P/E of 17, long history of consistent growth, and favorable outlook for the next five years. More than 94% of CAPS members rating Walgreen expect it to outperform the market going forward.