4-Star Stocks Poised to Pop: Walgreen
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 |
Industry | Drug retail |
Trailing-12-Month Revenue | $73.2 billion |
Management | CEO Gregory Wasson (since 2009) |
Return on Equity (average, past 3 years) | 15.9% |
Cash/Debt | $1.1 billion / $2.4 billion |
Dividend Yield | 2.9% |
Competitors | CVS Caremark |
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 thisarticle 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.
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