CVS Caremark (CVS), which competes with Walgreen (WAG), Rite Aid (RAD), and Wal-Mart (WMT), posted fourth-quarter data on Monday. Sales increased 7%, and adjusted earnings per share from continuing operations (excluding, in addition, a penny per share relating to a tax benefit) came in at 78 cents -- good for a growth rate of over 11%. That bottom-line performance matched analyst projections, according to our earnings preview.

As we all know, matching expectations is sometimes the death of a stock. The market has no conscience when it comes to mercilessly punishing an equity for not going beyond the call of the analysts. However, CVS actually did pretty well yesterday, rising 5% by the end of the session; the move was backed by healthy volume.

Drugstore chain Rite Aid (RAD) reported Monday that its same-store sales fell 1.8% in December, marking the seventh consecutive month of declines. Same-store front-end sales dropped 2.3% for the period ended Dec. 26, while pharmacy sales contracted by 1.5%. Total sales pulled back 3% to $2.09 billion.

Pharmacy sales had been fairly resilient of late, but the decline in the most recent month was attributed to the introduction of a growing number of generic drugs. Additionally, the number of prescriptions filled on a same-store basis dropped by 0.2%.

Walgreen (WAG), a drugstore chain that competes with CVS Caremark (CVS) and Rite Aid (RAD), issued fiscal Q1 numbers on Monday. The growth rates were impressive.

Total sales were up 9.5%. Net income increased almost 20% to 49 cents per diluted share. Operational cash flow was higher by over three times. According to our earnings preview, analysts were expecting 48 cents per share. Of course, since there were restructuring charges included in the above per-share profit stat (equal to 3 cents per share), the beat is better than it looks. This was indeed a good quarter.

Here are some highlights from this past week's earnings coverage on BloggingStocks:

• Adobe Systems Inc. (ADBE) shares rose after lower Q4 earnings and revenue beat analysts' expectations.
• Best Buy Inc. (BBY) shares sold off despite better-than-expected Q3 results due to the lower gross margin.
• Charles Schwab Corp. (SCHW) warned that Q4 earnings would come in lower than the Street view
• Discover Financial Services (DFS) shares were up after it reported better-than-expected Q4 earnings.
• First Solar Inc. (FSLR) offered a solid 2010 outlook but the consensus EPS estimate is high in the range.
• General Mills Inc. (GIS) strong Q2 results included better-than-expected earnings and a rosy outlook.

Rite Aid (RAD), whose colleagues include CVS Caremark (CVS) and Walgreen (WAG), reported third-quarter results on Thursday. Although they did show improvement, I think most investors would be better off staying away from the stock.

According to this summary at Reuters, top-line sales decreased a little under 2%, and the loss per share came in at 10 cents. This was a lot better than the 30 cents per share lost in the comparable quarter. Expectations were for the red ink to be closer to 18 cents per share.

Here are some highlights from last week's earnings coverage from BloggingStocks:

• Activision Blizzard Inc. (NASDAQ: ATVI) shares rose after it reaffirmed its full-year earnings and sales outlook.
• Automatic Data Processing Inc. (NASDAQ: ADP) will have low double-digit EPS growth, predicts one analyst.
• AutoZone Inc. (NYSE: AZO) posted a decline in earnings but a small rise in sales, sending shares lower.
• Bed Bath & Beyond Inc. (NASDAQ: BBBY) posted better-than-expected Q2 earnings and higher revenue.
• CarMax Inc. (NYSE: KMX) rallied to a new 52-week high after topping analysts' Q2 earnings expectations.
• Carnival Corp. (NYSE: CCL) reported better-than-expected Q3 results and raised its full-year guidance.

Rite Aid Corp. (NYSE: RAD) wallowed in the red Thursday morning, after the drugstore chain disappointed Wall Street with its second-quarter earnings and full-year guidance.

Rite Aid said its quarterly loss narrowed to $116 million, or 14 cents per share, while revenue dwindled 2.7% to $6.3 billion. Same-store sales dipped 1.1%, while gross margin contracted from 27.4% to 26.7%.

Stocks opened up on the day and stayed up on the day, despite closing well off of the highs. We had three key economic reports hit at once as the Institute for Supply Management gave the June ISM Manufacturing data, while we saw pending home sales data and new construction spending data mixed for May. These actually ended up being contradictory numbers, and then the oil inventories did nothing to support higher oil prices.

Here were today's unofficial closing bell levels:

Dow 8,504.06 +57.06 (0.68%)
S&P 500 923.33 +4.01 (0.44%)
Nasdaq 1,845.72 +10.68 (0.58%)

Top Analyst Upgrades & Downgrades

Here are some highlights from this past week's earnings coverage from BloggingStocks:

• Accenture Ltd. (NYSE: ACN) beat earnings expectations but revenue was hurt by currency effects.
• Bed Bath & Beyond Inc. (NASDAQ: BBBY) strong Q1 results beat estimates but same-store sales fell.
• CKE Restaurants Inc. (NYSE: CKR) lower Q1 earnings and strong sales both topped expectations.
• ConAgra Foods Inc. (NYSE: CAG) higher Q4 earnings were in line with expectations, and shares slipped.
• Darden Restaurants Inc. (NYSE: DRI) Q4 results were higher, but it warned of continuing challenges.
• Hennes & Mauritz (OTC: HMRZF) reported strong Q2 numbers, though same-stores sales slipped.

Rite Aid (NYSE: RAD), which competes with Walgreen (NYSE: WAG), CVS Caremark (NYSE: CVS), and Wal-Mart (NYSE: WMT), saw a big increase in volume on Wednesday after it reported earnings for the first quarter. In fact, as Douglas McIntyre observed, shares of Rite Aid were up 5% at one point during yesterday's session. However, the shares ended up losing their green status by the close of trading. Rite Aid actually lost 3% when all was said and done. What does it all mean?

Well, Rite Aid did beat analyst forecasts by a wide margin. The call was for a loss of 13 cents per share. Rite Aid lost only 6 cents per share once adjustments are made. Revenues dipped a little over 1%, and same-store sales, after excluding the effect of the Brooks Eckerd acquisition, increased 1.5%. Interestingly, the mix of this increase is as follows: the pharmacy sales went up 3.1% on a comparable basis, and the non-pharmacy sales went down 1.4% on the same basis.

Today was an unusually active day for extremely volume increases in several stocks which traded on news and rumors.

Shares in Sequenom (NASDAQ: SQNM) jumped over 10% on takevover rumors.

Rite Aide (NYSE: RAD) moved higher by 5% on larger than normal volume as it beat earnings estimates and Monsanto (NYSE: MON) traded up on strong numbers and took a number of agriculture stocks with it. Oracle (NASDAQ: ORCL) also benefited from earnings above Wall Street forecasts.

Palm (NASDAQ: PALM) traded higher as RBC upped its price target to $18 from $14, and MEMC (NYSE: WFR) fell on a downgrade from JPMorgan.

Douglas A. McIntyre is an editor at VSInvestor.com.

Walgreen (NYSE: WAG), a drugstore business that competes with CVS Caremark (NYSE: CVS) and Rite-Aid (NYSE: RAD), will be issuing results for the third quarter on Monday, June 22. According to Earnings.com, the analyst community is prescribing $0.56 per share for the company.

Of course, the question is: will Walgreen honor that prescription and fill it? I'd say it's quite possible. Last time around, Walgreen beat estimates. The call was for $0.66 per share in Q2. If you look at the press release from that time, you'll see that, once you adjust for some items, Walgreen went beyond expectations.

Here are some highlights from this past week's earnings coverage from BloggingStocks:

• American Electric Power Co. Inc. (NYSE: AEP) lowered its earnings forecast for fiscal 2009.
• Apollo Group Inc. (NASDAQ: APOL) reported better-than-expected Q2 earnings and strong revenue growth.
• Borders Group Inc. (NYSE: BGP) reported better-than-expected Q4 earnings despite a decline in sales.
• CarMax Inc. (NYSE: KMX) soaring earnings beat Q4 expectations despite a decline in revenue.
• Colgate-Palmolive Co. (NYSE: CL) was downgraded on risk to its earnings from currency issues.

Rite Aid (NYSE: RAD), whose competitors include Walgreen (NYSE: WAG), CVS Caremark (NYSE: CVS), and Wal-Mart (NYSE: WMT), reported Q4 numbers today, and when you read through the release, you sort of come away with a decent feeling. You hear about improvements in this metric and that metric. You wonder if a turnaround might be in the offing. Then you look at the stock price and, even though it is currently being bid higher (it's up over 14% as I write), you come back down to earth and reality hits you in the face. Anything trading under a buck has to give you pause. Rite Aid is no different.

For the quarter, Rite Aid posted a 1.7% decrease in the top line. On an adjusted basis, the drugstore chain reported a loss of $0.14 per share. According to this source, Wall Street thought Rite Aid might lose $0.105 per share. The company is still adjusting to the Brooks Eckerd acquisition. Excluding that effect, same-store sales increased 0.8%. Including the asset, comps decreased 0.1%.

Walgreen (NYSE: WAG ) knows that people want all kinds of options to meet their healthcare needs. Walgreen also knows that it needs to grow and keep up with competitor CVS Caremark (NYSE: CVS) and the pharmacy department at Wal-Mart (NYSE: WMT). And, yes, I suppose Rite-Aid (NYSE: RAD) is technically a competitor, too, although you wouldn't know it by that drugstore chain's stock price. Well, according to The Wall Street Journal, Walgreen plans to promote an initiative called "Complete Care and Well-Being" to employers. The goal here is to give corporate, as well as government, employees and their families access to healthcare services such as preventive medicine and dental examinations in off-hour time periods. Walgreen will use a network of in-store clinics and health centers to provide these services. That's pretty cool, right? Well, one of the bigger benefits to Walgreen is the synergy it can promote by leveraging this program.