4-Star Stocks Poised to Pop: Walgreen

Before you go, we thought you'd like these...
Before you go close icon

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, drugstore giant Walgreen (NYS: WAG) has earned a respected four-star ranking.

With that in mind, let's take a closer look at Walgreen's business and see what CAPS investors are saying about the stock right now.

Walgreen facts

Headquarters (founded)Deerfield, Ill. (1901)
Market Cap$25.8 billion
IndustryDrug retail
Trailing-12-Month Revenue$73.2 billion
ManagementCEO Gregory Wasson (since 2009)
CFO Wade Miquelon (since 2008)
Return on Equity (average, past 3 years)15.9%
Cash/Debt$1.1 billion / $2.4 billion
Dividend Yield2.9%
CompetitorsCVS Caremark
Rite Aid
Wal-Mart Stores

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 94% of the 2,209 members who have rated Walgreen believe the stock will outperform the S&P 500 going forward.

Just last week, one of those Fools, assassin17, tapped Walgreen as a solid income opportunity:

3% dividend yield, great balance sheet, consistent operating margins over the past 5 years (2011 actually better than previous two years), consistently growing sales until recently, and stock is down 15% from recent highs. I hope the PBM issue will resolve in a non-disastrous way, but with a decent and sustainable yield ... I'm not relying on that hope.

If you want market-beating returns, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future. Of course, despite a strong four-star rating, Walgreen may not be your top choice.

We've found another retailer we are incredibly excited about -- excited enough to dub it "The Motley Fool's Top Stock for 2012." We have compiled a special free report for investors to uncover this stock today. The report is 100% free, but it won't be here forever, so click here to access it now.

Want to see how well (or not so well) the stocks in this series are performing? Follow the newTrackPoisedToCAPS account.

At the time this article was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Motley Fool newsletter services have recommended creating a diagonal call position in Wal-Mart. Try any of our Foolish newsletter services free for 30 days.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners