Walgreen: Slightly Overbought, Short-term

Filed under: Walgreen Co (WAG)

Walgreen Company (WAG), first written about here on February 17, 2009 at a price of $25.46, has powered higher, clearing $40 resistance, and if you're in at/near $25, now may be a good time to consider taking some profits.



Drug store chain giant Walgreen's revenue should rise about 3-5% in FY2011, boosted by the addition of about 300 net new store openings. The front-store traffic trend in this more than 8,000-store chain is being hurt by a slower-than-expected U.S. economic recovery, and back-store (pharmacy) margins are not rising as fast as expected, due to a slower roll-out of higher-margin generic drugs.



Even so, Walgreen locates many of its stores in high-traffic spots, which means WAG is well-positioned when the U.S. economy starts to add jobs in a sustained way, and traffic improves.

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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.

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