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The other Colorado healthcare play?

Talking Numbers

Walgreens is teaming up with Centura Health to provide expanded health coverage in parts of Colorado. Is the buzz around this stock justified?

You can get a lot of things these days in Colorado, and now that includes expanded healthcare.

Pharmacy chain Walgreens announced on Tuesday that it will be collaborating with Centura Health to "provide coordinated and expanded health care services, while improving access to high-quality, convenient and affordable care for patients throughout Colorado’s Front Range."

John Stephenson, portfolio manager at First Asset Investment Management, says this is part of the company's long-term strategy.

(Read: Colorado mirrors nation in health signups)

"It helps build out their platform in health and wellness," says Stephenson. "They're building out around the pharmacy, both in clinics and specialty pharma. This is really part of their program to be the first global healthcare brand, a really strong platform."

In Stephenson's view, the company is "doing everything right". He says Walgreen's management was written off half a decade ago but has proven itself, doing deals with the likes of Alliance Boots and AmerisourceBergen. In the last five years, Walgreen's stock is up 130%.

"They're firing on all cylinders," says Stephenson. "Clearly, they're doing well."

(Read: Envision Healthcare forecasts 2014 earnings growth)

Talking Numbers contributor Richard Ross, Global Technical Strategist at Auerbach Grayson, says the charts agree with Stephenson's assessment.

"Walgreens is a very strong fundamental story," says Ross. "It's an even better chart."

A key support line is the 150-day moving average while $60 remains resistance for the stock, according to Ross.

"A breakout is imminent," says Ross. "You want to be a buyer in anticipation of that breakout."

To see more of Stephenson's fundamental analysis and Ross' charts on Walgreen's, watch the video above.

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