If we told you that the largest pharmacies chains in the U.S., CVS Caremark (CVS) and Walgreens (WAG), planned to sell more groceries and produce, would you believe us? If so, you would be right. CVS Caremark plans to double the size of its food section and revamp about 20% of its 7,000 stores to better cater to groceries and quick check outs, and Walgreens started to satiate its appetite for the nation's trillion-dollar food budget by announcing last year that it would add up to 500 food items including salads, sandwiches, frozen meats, soups, juices, yogurts and even sushi to its offering.

How Do Consumers Benefit?

Continue reading CVS Stocks More Food That Could Add More Beef to Our Upside

CVS Stocks More Food That Could Add More Beef to Our Upside originally appeared on BloggingStocks on Wed, 16 Feb 2011 16:00:00 EST. Please see our terms for use of feeds.

Continue reading Walgreen: Slightly Overbought, Short-term

Walgreen: Slightly Overbought, Short-term originally appeared on BloggingStocks on Thu, 20 Jan 2011 18:00:00 EST. Please see our terms for use of feeds.

Walgreen (WAG) is having a merry Christmas. The stock closed on Thursday at $39.19. The 52-week high for the shares is $40.20. Pretty cool for those who own this name. Something even cooler: the drugstore chain issued a solid fiscal first-quarter report earlier in the week.

The press release begins with three bragging bullet points: the top line gained 6% and came in at $17.3 billion; gross margin expanded by 80 basis points; operating cash flow was $1.2 billion. Nice, but in terms of the latter point, it should be noted that cash from operations was essentially flat compared to last year's number. That's okay, though, it's still respectable.

Continue reading Walgreen Near 52-Week High After Q1 Report

Walgreen Near 52-Week High After Q1 Report originally appeared on BloggingStocks on Fri, 24 Dec 2010 10:00:00 EST. Please see our terms for use of feeds.

Walgreen Co. (WAG), which recently began carrying fresh fruit and vegetables in some of its stores, is scheduled to discuss its fourth-quarter fiscal 2010 financial results Tuesday, September 28, in a conference call beginning at 8:30 AM (ET). You can catch a live webcast of the call at the company's website.

During the three months that ended in August, Deerefield, Ill.-based Walgreen launched a social responsibility website and boosted its dividend. Analysts surveyed by Thomson Reuters are looking for the drugstore chain operator to report that its earnings for that period were about the same as a year ago, or 44 cents per share. Revenue is expected to total $16.8 billion, which is a 7.3% increase from the same period of last year. And for the full year, analysts forecast EPS of $2.12 (+4.7%) on revenue of $67.4 billion (+6.4%).

Continue reading Walgreen Earnings Preview

Walgreen Earnings Preview originally appeared on BloggingStocks on Mon, 27 Sep 2010 14:00:00 EST. Please see our terms for use of feeds.

Now that health care reform is a done deal, with the ink from President Obama's signature yesterday still drying, it's time to talk about how to profit from the new legislation.

I know many parts of the legislation may not sit well with some of you -- whether it be the taxes on dividends used to pay for reforms or the general idea of Uncle Sam getting deeper into entitlement spending even as businesses are generally reducing their debt loads. But what's done is done and there's no use grousing about it. As investors, it's not our job to judge how good or bad the news is but only to judge how to cash in.

Continue reading The Top Investing Mistake After Health Care Reform

The Top Investing Mistake After Health Care Reform originally appeared on BloggingStocks on Wed, 24 Mar 2010 18:00:00 EST. Please see our terms for use of feeds.

Continue reading Walgreen (WAG) Buying Duane Reade

Walgreen (WAG) Buying Duane Reade originally appeared on BloggingStocks on Wed, 17 Feb 2010 09:50:00 EST. Please see our terms for use of feeds.

Continue reading Walgreen's December Sales Were Slow

Walgreen's December Sales Were Slow originally appeared on BloggingStocks on Wed, 06 Jan 2010 14:20:00 EST. Please see our terms for use of feeds.

I'm reiterating my buy ratings the nation's two premier drug store chains: CVS Caremark (CVS), first recommended on February 16, 2009, at a price of $27.30; and Walgreen (WAG), first recommended on February 17, 2009, at a price of $25.46. If you bought CVS in February, you're up 25%; WAG, up about 40%.

As expected, each has performed well on increased store traffic stemming from the H1N1 flu virus (trips to purchase hand sanitizers, other disinfecting items, and flu symptom comforts), which has offset reduced traffic for other drug store trips, due to the U.S. recession.

Continue reading CVS, Walgreen: Pull-Backs Are Buy Opportunities

CVS, Walgreen: Pull-Backs Are Buy Opportunities originally appeared on BloggingStocks on Mon, 04 Jan 2010 12:45:00 EST. Please see our terms for use of feeds.

If consumers try a little harder this year, the holiday season has a shot of hiding memories of last year's nightmare for retailers. The retailers are doing their part, with Walmart (WMT), Gap (GPS), RadioShack (RSH), Walgreens (WAG) and many others opening their doors Thanksgiving Day, giving shoppers the opportunity to start their spending early. There's a chance that consumers will spend a bit more this year to thank each other for keeping their belts so tight for so long.

Forecasts of the season's ultimate result remain difficult to pin down. Some expect a year-over-year decline of 3%, and predictions range to an increase of 2%. Credit is harder to come by, and unemployment remains over 10% and at a 26-year high. But, the pressures on spending are offset by pent-up emotion and a stabilizing financial environment -- even if it isn't getting better yet, it doesn't seem to be getting worse.

Continue reading Consumers sick of recession, may spend extra on holidays

Consumers sick of recession, may spend extra on holidays originally appeared on BloggingStocks on Thu, 26 Nov 2009 11:10:00 EST. Please see our terms for use of feeds.

Continue reading Wal-Mart shares are dead money -- so where is it headed?

Wal-Mart shares are dead money -- so where is it headed? originally appeared on BloggingStocks on Mon, 02 Nov 2009 17:45:00 EST. Please see our terms for use of feeds.

Continue reading Walgreens (WAG) September sales grow by 10%

Walgreens (WAG) September sales grow by 10% originally appeared on BloggingStocks on Fri, 02 Oct 2009 12:20:00 EST. Please see our terms for use of feeds.

Continue reading Walgreens (WAG) soars on Q2 earnings

Walgreens (WAG) soars on Q2 earnings originally appeared on BloggingStocks on Mon, 23 Mar 2009 13:45:00 EST. Please see our terms for use of feeds.

Walgreen's (WAG) posts strong December sales originally appeared on BloggingStocks on Mon, 05 Jan 2009 13:12:00 EST. Please see our terms for use of feeds.

It seems that investors approve of this action, since WAG is up a nice chunk today. If you think that the stock won't fall by too much in the coming months, then now could be a good time to look at a bullish hedged trade on WAG.

WAG opened this morning at $26.89. So far today the stock has hit a low of $26.44and a high of $27.27. As of 12:30, WAG is trading at $26.80, up 62 cents (2.3%). The chart for WAG looks bearish and S&P gives WAG a 3 STARS (out of 5) hold ranking.

For a bullish hedged play on this stock, I would consider a November bull-put credit spread below the $25 range.

Continue reading Walgreens (WAG) backs out of Long's acquisition

Walgreens (WAG) backs out of Long's acquisition originally appeared on BloggingStocks on Thu, 09 Oct 2008 13:18:00 EST. Please see our terms for use of feeds.

Though the quarter is winding down, there are still earnings reports to come, including Walgreen Co. (NYSE: WAG) and Kroger Co. (NYSE: KR). Both companies are expected to report profit growth this coming week.

Walgreen is expected by analysts surveyed by Thomson Financial to report third-quarter earnings of 59 cents per share, up 6.8% from the same period of last year, on revenue of $15.1 billion. The company has provided positive surprises in four of the past five quarters -- by two cents in the previous quarter.

Based in Deerfield, Ill., Walgreen is the largest drug store chain in the U.S. in terms of sales, and has more than 6,200 stores in the U.S. and Puerto Rico. In the past year, the company's revenues were $53.7 billion and its net income totaled $2.0 billion. Its long-term EPS growth forecast is 14.0%, which is less than the retail industry average, as well as less than that of rival CVS Caremark (NYSE: CVS). The consensus recommendation of analysts has recently shifted from hold to buy Walgreen.

The share price is up 4.0% since the beginning of the year, and up from 11.6% from a year ago. It trades at a P/E ratio of 20.68. Shares closed Friday at $41.35.

Continue reading Walgreen, Kroger expected to report profit growth

Walgreen, Kroger expected to report profit growth originally appeared on BloggingStocks on Sun, 22 Jun 2008 14:40:00 EST. Please see our terms for use of feeds.

This post is part of our Battle of the Brands feature. Let us know which brand you prefer, and check out other Battle of the Brands posts.

CVS Caremark Corp (NYSE: CVS) -- with 6,200 stores and a pharmacy benefits management division -- beats Walgreen Co. (NYSE: WAG) -- with 5,997 stores -- hands down in the battle of the brands. It's bigger, its earnings are growing faster, it has a higher P/E and its stock has grown faster over the last year and five years. Walgreen wins on one measure: it has a fatter profit margin.

Here's how the two score on these measures:

• Revenues. $76 billion (CVS) beats $54 billion (Walgreens)
• Earnings growth. 12% (CVS) beats 6% (Walgreens)
• Profit margins. 3.8% (Walgreens) beats 3.45% (CVS)
• P/E. 21.3 (CVS) beats 17 (Walgreens)
• One year stock performance.+16% (CVS) beats -22% (Walgreens)
• Five year stock performance. +250% (CVS) beats +16% (Walgreens)

Peter Cohan is President of Peter S. Cohan & Associates. He also teaches management at Babson College and edits The Cohan Letter. He has no financial interest in the securities mentioned.

Vote in our poll for CVS or Walgreens as your preferred brand, and let us know in the comments why you love it.

Battle of the Brands: CVS vs. Walgreens originally appeared on BloggingStocks on Fri, 02 May 2008 18:00:00 EST. Please see our terms for use of feeds.

MAJOR PAPERS:

• Luqman Arnold, the former UBS AG (NYSE: UBS) president forced out in 2001, wants the firm to split its investment bank from the private client bank, and look at selling the investment bank and asset management business, according to the Wall Street Journal's "Heard on the Street".
• Microsoft Corporation's (NASDAQ: MSFT) bid to acquire Yahoo! Inc (NASDAQ: YHOO) has not gained any steam even though executives of the two companies met this week, the Wall Street Journal reported.
• The Financial Times reported that the landmark merger that created Citigroup Incorporated (NYSE: C) was a "mistake" that failed to benefit the financial services giant's investors, customers and employees, said John Reed, who masterminded the $166B deal with Sandy Weill in 1998. Reed, the former head of Citicorp, has advised Citigroup CEO Vikram Pandit at least to consider spin-offs, sources said.

• Walgreen Co (NYSE: WAG) is branching out by acquiring two companies that provide health-care services, BusinessWeek reported, following in its competitor CVS Caremark Corporation's (NYSE: CVS) shoes. Some investors are wary of Walgreen's move, but Mark Wiltamuth of Morgan Stanley sees it as a new growth avenue and as a push into services complementary to drugstores.

Newspaper wrap-up: Merger that created Citigroup was a mistake, one of deal's architects says originally appeared on BloggingStocks on Fri, 04 Apr 2008 08:15:00 EST. Please see our terms for use of feeds.

Leading drug store chain Walgreen Co. (NYSE: WAG) and upscale specialty retailer Tiffany & Co. (NYSE: TIF) are scheduled to report earnings tomorrow. Here's a quick peek at them ahead of results.

Walgreen has beat earnings estimates in four of the past five quarters. When the company reported first-quarter results back in November, earnings came to 46 cents per share, two cents less than the consensus forecast of analysts polled by Thomson Financial, and up from the 43 cents in the same period of the previous year. For the current quarter, analysts expect 67 cents per share, compared to 65 cents in the year-ago quarter.

The company's earnings per share growth forecast for this year is 9.42%, which is better than the industry average but less than the 30.68% of rival CVS Caremark Corp. (NYSE: CVS). The analysts' consensus recommendation is to hold Walgreen, and has been for the past three months. Shares have risen since hitting a 52-week low of $32.50 in January, and closed Friday at $36.78.

For news about Walgreens that could influence the earnings results, see BloggingStocks' Walgreen coverage.

Continue reading Earnings previews: Walgreen and Tiffany

Earnings previews: Walgreen and Tiffany originally appeared on BloggingStocks on Sun, 23 Mar 2008 15:40:00 EST. Please see our terms for use of feeds.

Walgreen (WAG) blames lower quarterly profit on generic drug prices originally appeared on BloggingStocks on Mon, 01 Oct 2007 12:21:00 EST. Please see our terms for use of feeds.

Walgreen Co. (NYSE:WAG) opened at $44.28. So far today the stock has hit a low of $44.24 and a high of $45.05. As of 1:00 this afternoon, WAG is trading at 44.10, down 0.04 (-0.1%), well off its morning highs.

After hitting a one year high of 51.60 in September, the stock dropped sharply and has since seen resistance around 47. Tensions over the deal between CVS (NYSE:CVS) and Caremark (NYSE:CMX) wreaked havoc on drug store stocks yesterday, including a big dip in WAG stock yesterday afternoon. Most of these stocks bounced back earlier today but are now sliding with the rest of the market, with the CVS/CMX vote scheduled for tomorrow. The technical indicators for WAG have been bearish and steady, while S&P gives the stock positive 4 STARS (out of 5) buy rating.

For a bullish hedged play on this stock, I would consider a July bull-put credit spread below the $37.50 range. WAG hasn't been below 39.50 at all in the past year, and has shown support around 40. This trade could be risky depending on how the CVS-CMX deal turns out, but the strong support for WAG around 40 could protect this position.

Brent Archer is an options analyst and writer at Investors Observer. (Free Subscription)

DISCLOSURE: Mr. Archer owns and/or controls diversified portfolios of long and short stock and option positions that may include holdings in companies he writes about.

Walgreens bounces back ahead of CVS/CMX vote originally appeared on BloggingStocks on Wed, 14 Mar 2007 13:00:00 EST. Please see our terms for use of feeds.