In The Ring – Walgreen
Cramer compared CVS Caremark (CVS) to Walgreen’s (WAG) for his “In The Ring” segment on Wednesday’s “Mad Money” TV show. Cramer started out by giving the entire drugstore sector an overall rating of 4 out of 5. He said drugstores are great plays for economic slowdowns like we are in right now. Next, Cramer looked at the growth. He explained that same-store sales are the key thing to look at with drugstores. Recently, CVS reported same-store sales that were up 3.1%, vs. Walgreen’s which came in at 4.1%. Next, he looked at both company’s growth strategies. He pointed out that last year CVS acquired Caremark and that move hasn’t helped the company. By contrast, Walgreen’s has been improving existing stores and not opening up new ones. Cramer awarded Walgreen’s three points for both categories – final score 7-5 WAG. Cramer advised viewers to buy WAG once the stock pulls back to $34. Chat and share ideas with the best small cap traders LIVE each day free at Stocknetworkonline.com
Leave a Response
