Walgreen runs the largest network of retail drugstores in the U.S. The outfit offers an array of consumer goods and services, pharmacy, and health and wellness services. Walgreen has a market cap of $45.5 billion and a P/E ratio of 21.4 - above the S&P 500 P/E ratio of 17.7. Shares are up by more than 29% so far in 2013.
The drug chain is strong in a number of areas including climbing net income, steady cash flows, and a sound financial position overall. Moreover, Walgreen has a history of solid share price performance and continued growth in earnings per share.
The company recently reported results for the first quarter and sales are up about 3.8% to just under $6 billion. Walgreens’ total pharmacy sales accounted for much this rise - more than 64% of total sales. But total front-end sales declined 2.9% compared with the first quarter of 2012.
In short, Walgreen’s prescription drug sales have climbed for two straight months and are likely to continue. The share price is now hovering at $49+, far higher than the 52 week low of $28.50. At this price, it could be time to take some money off the table; but growing Rx sales numbers going forward make Walgreen a good long-term buy.