No Compelling Reason to Own Walgreen

After the big declines of last week, the market has had since Tuesday one of best three-day runs of 2013. One stock that has not participated in the rally and has actually sold off during that period is drugstore retailer Walgreen (WAG). The stock has lost some 8% of its value this week in the midst of this huge rally.

The core reason Walgreen had a tough week is that it reported earnings this week that missed on the top and the bottom line. Earnings per share came in at 85 cents, five cents below estimates. Revenues were also approximately $140 million light. One disturbing tidbit within earnings was that the chain's front-end sales dropped nearly 4% during the quarter. The drop in this traffic has also been seen at competitors Rite Aid (RAD) and CVS Caremark (CVS). The other driver of the stock's decline this week was a prescient downgrade of the shares the day before its earnings report by Cantor Fitzgerald....316 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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