4-Star Stocks Poised to Pop: Walgreen

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, drugstore giant Walgreen (NYSE: WAG  ) has earned a respected four-star ranking.

With that in mind, let's take a closer look at Walgreen's business and see what CAPS investors are saying about the stock right now.

Walgreen facts

Headquarters (founded) Deerfield, Ill. (1901)
Market Cap $25.8 billion
Industry Drug retail
Trailing-12-Month Revenue $73.2 billion
Management CEO Gregory Wasson (since 2009)
CFO Wade Miquelon (since 2008)
Return on Equity (average, past 3 years) 15.9%
Cash/Debt $1.1 billion / $2.4 billion
Dividend Yield 2.9%
Competitors CVS Caremark
Rite Aid
Wal-Mart Stores

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 94% of the 2,209 members who have rated Walgreen believe the stock will outperform the S&P 500 going forward.

Just last week, one of those Fools, assassin17, tapped Walgreen as a solid income opportunity:

3% dividend yield, great balance sheet, consistent operating margins over the past 5 years (2011 actually better than previous two years), consistently growing sales until recently, and stock is down 15% from recent highs. I hope the PBM issue will resolve in a non-disastrous way, but with a decent and sustainable yield ... I'm not relying on that hope.

If you want market-beating returns, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future. Of course, despite a strong four-star rating, Walgreen may not be your top choice.

We've found another retailer we are incredibly excited about -- excited enough to dub it "The Motley Fool's Top Stock for 2012." We have compiled a special free report for investors to uncover this stock today. The report is 100% free, but it won't be here forever, so click here to access it now.

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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Motley Fool newsletter services have recommended creating a diagonal call position in Wal-Mart. Try any of our Foolish newsletter services free for 30 days.

We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.


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