Walgreen consensus EPS estimates are projected to climb 20.7%, 14.9% and 12.3% in fiscal years 2011 through 2013. The current PE is 15.7 based on 2011 projected EPS. The stock pays a dividend of $0.70, yielding 1.70%.
Walgreen stock was trading between $40-$50 in the 4.5 years (2004-2008) leading up the financial meltdown of 2008. It proceeded to trade between $22-$40 in the ensuing years, and is just now breaking out of the trading range and returning to its former range above $40.
In the immediate future, look for the stock to trade between $40.50 and $43. I expect a subsequent move upward to occur sooner rather than later, although I would definitely be prepared for the stock to hit a ceiling near $50 and come back down. An attentive investor could make money repeatedly in Walgreens stock if it continues trading similarly to the 2004-2008 period.
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