Business As Usual at Walgreen

Walgreen (NYSE:WAG) continued to give investors reason to see it as a gem among drugstore retailers with its June same-store sales report today. Following last week's stellar quarterly earnings report, it's one of those cases of same story, different day.

The drugstore retailer said that same-store sales rose a perfectly solid 7.8% compared with June of last year. Meanwhile, overall revenues increased 12% to $3.5 billion. Sales were good in all parts of the stores, with same-store pharmacy sales increasing 8.2% and front-end same-store sales up 7%.

Just last week, Walgreen treated its investors to a nifty quarterly report, but still, Walgreen shares inched up a bit today, despite the stock's forward P/E of 26, which could be perceived as a bit pricey. It's a good bit higher than main rival CVS (NYSE:CVS), which sports a forward P/E of 19 and recently took the crown from Walgreen in terms of sheer number of stores after it purchased the Eckerd chain.

Regardless, Walgreen has certainly displayed its mettle when it comes to quarterly results and same-store sales over recent history. Meanwhile, beleaguered Rite Aid (NYSE:RAD) continues to look like the laggard of the bunch, and while some may wonder whether it's a value stock, one Foolish writer thinks it's not.

Although today's news is certainly good, it's also not very surprising. Investors might question whether Walgreen can keep up the great work. Of course, there is also the argument that a stock with a history of success will usually reward its investors with more success. Regardless, investors can count on some tough comparisons coming up and continued tough competition from CVS.

Here's some more Foolish drugstore-related content:

• Take a look at Walgreen's latest quarterly numbers.
• Find out one Fool's opinion as to whether Rite Aid is a real value stock.
• Read about Walgreen's interest in the prescription mail-order business.

Alyce Lomax does not own shares of any of the companies mentioned.