"Walgreen (NYSE: WAG) reported fourth quarter profits that topped Wall Street's expectations," says Geoffrey Seiler.

In his BullMarket,com advisory, he forecasts, "We expect to see continued operational improvements in the months ahead." Here, the advisor reiterates his buy rating and boosts his price target for the stock.

The advisor observes,, "The company reported a net profit of $436 million, or 44 cents per share, for the quarter ended August 31st, a -1.5% decrease the same quarter a year ago. Results topped the Wall Street consensus by 5 cents share and edged the full-year EPS estimate by 3 cents.

"Shares of Walgreen (NYSE: WAG) have come under pressure in recent months, reflecting a slowdown in sales because of a weakening economy and intensifying competition," notes Richard Moroney.

The editor of Dow Theory Forecasts adds, "However, Walgreen's long-term prospects remain appealing, and the stock is attractively valued. Walgreen is a Long-Term Buy." Here is his review.

"Big, strong, and healthy, Walgreen is the largest U.S. drugstore chain as measured by revenue and the second-largest based on store count.

"The company operates more than 6,200 stores in 48 states and Puerto Rico and plans to boost the count to 7,000 by fiscal 2010 ending August. Walgreen sees long-term potential for about 13,000 U.S. stores. Prescriptions generate about 65% of total sales, with the rest coming from general merchandise.

"In fiscal 2007, both pharmacy and general merchandise sales growth outpaced the industry average, and Walgreen increased market share in nearly all of its core categories.

Each year Steven Halpern, editor of TheStockAdvisors.com, surveys the leading financial newsletter advisors asking for their favorite stocks for the coming year. This article is part of his 24th annual Top Picks Report.

Rite Aid (NYSE: RAD) is the favorite conservative idea for 2007 from Jack Rothstein, editor of Wealthcast. The technician notes, "RAD recently broke out above the top of its base, making it a low risk choice for 2007.

"It trades as liquid as water and is easy in and out. For added safety, the stock can be bought in stages down to the 4.75 zone. The buying may begin right now. It has solid support at 4.70. The 200-day average price is 4.44. The stop ought to be placed below that line at 4.39.

"RAD is a leading stock this year, up over 50%, and the current advance expresses no hint at turning. Having risen above the top of its trading range and base the other day hints at higher price zones down the road. It trades up on all cylinders with the 10-day line at 5.16.

"Technically, if it's able to angle higher and go topside 6.51 on a close over the next quarter, then it is likely to ramp to test the 10 zone. That is the risk-reward ratio. The odds, given the price pattern, favor a rise to test the high at 6.50 made over three years ago, and that accomplishment will enable RAD to take off."

To see Jack's favorite speculation for 2007, click here.