After CVS Caremark
CVS Comp Sales |
September |
Q3 |
YTD |
---|---|---|---|
Pharmacy |
4.3% |
4.3% |
5.8% |
Front-End |
6.8% |
6.5% |
6.3% |
Total |
5.0% |
5.0% |
6.0% |
Lots of retailers these days forecast "mid-single-digit" comparable sales growth. This means they don't really know what's going to happen, but somewhere between 3% and 7% would be nice. No such dithering at CVS -- "mid-single-digit" means just that.
CVS management isn't hinting at any earnings problems for the third quarter. The analyst community is tightly grouped within a couple of pennies of $0.44 per share, which should translate into third-quarter EPS growth of more than 30%, compared to $0.33 last year.
This should comfort Foolish investors who dabble in retail, since Walgreen
Drugstores seem to have carved out one of the sweetest spots in retail these days, with a powerhouse combination of convenience, savvy front-end merchandising, and an irresistible demographic profile. It's true that mass-merchandisers like Wal-Mart
CVS is probably the best-positioned of the pack right now, as it capitalizes on synergies from the CareMark acquisition. At a trailing-12-month P/E of more than 22, the stock isn't cheap -- but consistent performance rarely is.
For more news from the world of corner drugstores, check out: