+ Watch WAG
on My Watchlist
Walgreen is your corner drugstore, selling prescription and OTC drugs and an array of other merchandise.
I'm going to track WAG and CVS here, based on the research in AAII (April 2013: Joint Quality, Value and Momentum).
Recently closed at 52 week high. Expect uneven earnings.
Love this company!
Use whatever method you want, it is down from here. Beginning of a H&S? End of an ABC correction? It will be a lot closer to $20 than $40 by next year.
WAG is poised to continue to grow due to aging population and expansive growth in healthcare fields. This area cannot be overlooked and the huge players in the arena are the way to go. Some are bearish about the acquisition of the foreign pharmacy unit they have recently jumped into bed with, not me. International growth without having to break into the market. WAG has done a great job integrating purchases, why would this change now. The recent problems with the pharmacy benefits partner are clearing up but the improvment in this relationship has not been reflected into the price yet. Top it off with a 2.8% dividend and this one will help me grow old comfortably.
Screen: stocks increasing their dividend payout for at least 25 consecutive years. http://www.scottsinvestments.com/
Unedited excerpt from a CAPSCall article anticipated for publication on 31-DEC-2012:The next selection for the newly launched Inflation-Protected Income Growth Portfolio is drug store titan Walgreen (NYSE: WAG). Well known for marrying convenience with service and well-staffed, knowledgeable pharmacies, Walgreen prides itself on being available where and when its customers need it.The company has paid a dividend for 80 straight years, and it has paid higher amounts each year for the past 37. That’s a commendable track record. Even better, that shareholder-friendly dividend policy predates the Bush dividend tax cuts by decades, making it unlikely that it would change just because those cuts are slated to expire. And with a respectable payout ratio of 45%, it has considerable coverage even if things do go bad.
Fidelity high yield by P/S. 1 of 4.
Here's a pick where I nailed the bottom (aka luck). Walgreen is an amazing company that always increases its dividend, is still growing, and allows me to relive my childhood with Lunchables when I forget to pack a lunch. Go long, outperform, and prosper.
High earnings predictabilyt and growth persistence. strong finances, reasonable PE. Beautiful dividend. Obstinate management - this can be good or bad, depending on market reaction.
I calculated the intrinsic value to be $64.30 a share. I don't mind paying 50 cent for a dollar
Allow me to paint you a picture:WAG has been growing robustly w/ a 10 yr avg EPS growth rate of 13%. Consensus earnings growth estimates are 12.33% per yr for next 5 years. But, let us assume that the analysts are grossly overestimating, and growth amounts to only 8% per yr. Combining that conservative 8% EPS growth rate with the 3% div yield = 11% annual returns even if WAG's current valuation multiples (12x earnings and 13x fcf ) remain this low. That's an 11% compounded annual returns in a pessimistic scenario. Now, imagine the returns if WAG simply meets expectations and/or valuation multiples expand from current lows. You could easily see 60% upside in 2-4 yrs. Here’s a reasonable example of what I mean:WAG earned 2.95 per share in 2011. At a conservative growth rate of 8%, WAG would earn 3.70 per share in 2014. Now, let’s up that P/E from today’s very low 12x to a much more reasonable 15x and you get a share price of $55.50. Add in the, at least, $3.50 in dividends WAG will pay you over the next 3 years, and you’re looking at $59 in value for a $35.63 stock. (An 18.31% compounded annual rate of return). That’s a very realistic 65% increase in value in 3 years. The S&P growing 65% in the next 3 years is not realistic. Outperform.
I love companines that have strong debt/equity ratios as WAG has in the past. I'm not crazy about the way the Boots purchase was handled but believe that this old line, old thinking company will get back to that strong ratio again as soon as they can. This is a lot that don't like their credit to be downgraded and will work to correct. I still see a lean, mean future ahead. And good earnings.
I feel as though Walgreens is a great stock pick. It's shares are currently inexpensive at only about $40, and it is growing strong. Walgreens has a rich history of paying dividends, and raising them every year. They own a location within close proximity to almost any American Citizen, and are involved with many communities. I see Walgreens as a current low priced stock preparing to make significant gains in the close future over competitors such as CVS and RiteAid.
I get it, "The time to buy is when there's blood in the streets" but I think maybe the blood hasn't even begun to flow in Europe, so this Boots acquisition with all the debt it entails stinks. Plus, I'd be leery of buying anything from KKR, I mean they're not idiots, so why are they selling if it's such a hot company. And the competition in the States (still their best market) is fierce and getting hotter by the minute. Short version: The aquisition sucks.
Very cheap plus a good dividend.
Reduced cost, bulk buying,cheaper shipping per item. cheaper advertising per item,.Fewer representatives per sales,
People will always need medication of some sort. Walgreens are near ever neighborhood.
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