"Walgreen (WAG) a holding on our recommended buy list, reported a 10% increase in its fiscal second-quarter profit," notes Geoffrey Seiler.

The editor of BullMarket.com explains, "Although investors hammered the stock, we think the company delivered solid sales growth. We continue to believe the best is yet to come for Walgreen, with several notable catalysts in the wings.

Walgreen (WAG) shares are undervalued," says J. Royden Ward, who assesses stocks based on a strict value-basis. His the latest from The Cabot Benjamin Graham Value Letter.

"Walgreen, founded in 1901, is the largest drug store retailer based on sales. In addition to 7,000 drug stores, the company operates 680 health clinics within existing stores and on employer worksites.

"Healthcare-related stocks have been trading up and down based on the latest rumor of how the Obama medical plan might be implemented," observes analyst Glenn Rogers.

The contributing editor to Gordon Pape's Internet Wealth Builder asks, "How can we benefit from Obama-Care?" Here, the advisor looks at Walgreen (NYSE: WAG), the largest drugstore chain in the U.S."

"A recent article in Barron's suggested that Walgreens, Caremark CVS, and Target could benefit from whatever new healthcare system emerges from Congress. (Note, Caremark CVS was covered in a previous post today.)

"Regardless of how you analyze the company, CVS Caremark (NYSE: CVS) stands out," says Chuck Carlson.

In The DRIP Investor, he explains, "Our Quadrix stock-rating system ranks more than 4,000 stocks based on more than 100 different variables. CVS scores better than 90% of the stocks in the Quadrix universe."

"CVS's Sector score -- that is, a score devised by evaluating the metrics that have the most influence over performance in that particular sector -- is also impressive at 95 out of a possible 100.

"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.

For 25 years, Steven Halpern, editor of TheStockAdvisors.com, has surveyed the leading financial newsletter advisors asking for their favorite stocks for the coming year. This article is one of 100+ ideas in the Best Stocks for 2008 report.

"If investors are looking for value in this market, it's hard to pass up the nation's largest drugstore chain -- Walgreen Co. (NYSE: WAG), my favorite more speculative idea for 2008," says Jim Stack, money manager and editor of InvesTech Market Analyst.

"Over the past 10 years, Walgreen's revenue and earnings-per-share have grown steadily at an average annual rate of 15% and 16%, respectively. Moreover, the company has competitive advantages that should help it maintain this enviable growth record.

"In particular the firm is noted for its customer-oriented philosophy and real estate acumen. It is adept at locating freestanding stores on prime corners, with each site required to meet multiple criteria based on traffic flow, demographics and other factors.

"In addition, Walgreen is innovative. The firm pioneered the concepts of a drive-thru pharmacy and keeping selected stores open 24 hours. It was also the first drugstore chain to offer prescription drugs in multiple languages.

"Is Walgreen (NYSE: WAG) ailing?" asks Jim Stack, a fund manager and advisor noted for his safety-first approach to investing. On the contrary, he suggests, "The stock is on sale."

In his InvesTech Market Analyst, Jim and senior analyst Bruce Morison explain, "For conservative, long-term investors, the recent precipitous drop in the stock price provides an attractive buying opportunity."

"Walgreen recently reported their 33rd consecutive year of record earnings and revenues. However, their fiscal 4th quarter profits fell 3.8% from the 4th quarter in 2006. This was the first quarterly earnings decline for the company in nearly 10 years.

"The widely-presumed defensive stock tumbled 15% following the release of the report. Nevertheless, we believe the fundamentals are still intact."

The advisors continue, "The earnings shortfall was the result of lower reimbursement for generic drugs and poor control of expense growth. The 4th quarter's year-over-year comparison on generic drug sales was especially tough given that Walgreen reaped huge profits last year as Zocar, Merck's popular anti-cholesterol drug, became available in generic form in June 2006."