Why Walgreen Is Poised to Keep Rallying

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 and see what CAPS investors are saying about the stock right now.

Walgreen facts

 

 

Headquarters (founded)

Deerfield, Ill. (1901)

Market Cap

$37.1 billion

Industry

Drug retail

Trailing-12-Month Revenue

$70.8 billion

Management

CEO Gregory Wasson (since 2009)
CFO Wade Miquelon (since 2008)

Return on Equity
(average, past 3 years)

15.2%

Cash/Debt

$1.9 billion / $6.4 billion

Dividend Yield

2.8%

Competitors

CVS Caremark (NYSE: CVS  ) Rite Aid (NYSE: RAD  ) Wal-Mart Stores (NYSE: WMT  )

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

On CAPS, 94% of the 2,241 members who have rated Walgreen believe the stock will outperform the S&P 500 going forward.

Just yesterday, one of those Fools, All-Star PsychoDr, succinctly summed up the bull case for our community:

[Walgreen] is poised to continue to grow due to aging population and expansive growth in health care fields. This area cannot be overlooked and the huge players in the arena are the way to go. Some are bearish about the acquisition of the foreign pharmacy unit they have recently jumped into bed with, not me. International growth without having to break into the market. [Walgreen] has done a great job integrating purchases, why would this change now. The recent problems with the pharmacy benefits partner are clearing up but the improvement in this relationship has not been reflected into the price yet. Top it off with a 2.8% [dividend yield] and this one will help me grow old comfortably.

If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a strong four-star rating, Walgreen may not be your top choice.

If that's the case, we've compiled a special free report for investors called "Secure Your Future With 9 Rock-Solid Dividend Stocks," which uncovers several other juicy income opportunities. The report is 100% free, but it won't be around forever, so click here to access it now.

Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.


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