Welcome!

News Feed Item

Technical Analysis on GNC Holdings and Walgreen: Drug Store Stocks Set to Provide Good Returns

LONDON, February 11, 2013 /PRNewswire/ --

Growing life expectancy is a good indicator of a nation's economic status, but at the very same time it also brings about the higher incidences of diseases and ailments. While the picture does not look pretty in general, it certainly is an attractive one for drug store companies. With growing demand for drugs, companies like GNC Holdings Inc. (NYSE: GNC) and Walgreen Co. (NYSE: WAG) are all set to see their stock prices soaring. These companies are also looking to expand their reach internationally. The sector also features competition, but the pie is big enough for all the players involved. StockCall has posted free technical research on GNC Holdings and Walgreen which can be downloaded upon sign up at http://www.stockcall.com/signup

GNC Holdings Continues on Growth Trajectory

GNC Holdings Inc. stock grew by 25 percent in the past 12 months and is rightly being lapped up by hedge funds. As per a recent filing by Citadel Investments, billionaire investor Ken Griffin now owns 3.5 million shares of the company, which is almost the double of its initial investment in the company. Alexander Mitchell's Scopus Asset Management also owns 2.5 million shares of the company. Hedge fund interest generally bodes well for a stock. The company holds leading position in nutrition and vitamins market. Sign up and read the complimentary report on GNC Holdings at http://www.StockCall.com/GNC021113.pdf

Apart from hedge fund interest, the company is doing well. GNC Holdings management upped its guidance for FY 2013. It is experiencing all-round growth as all its major segments including franchise, wholesale and retail recorded growth for FY 2012. The company has reported positive same-store sales growth for 29 consecutive quarters. GNC Holdings runs 7,600 retail locations globally and is active in 53 countries. With projected earnings growth of 22 percent for next five years, the company offers good long-term investment opportunity. For the third quarter of the year, GNC Holdings reported 28 percent increase in its earnings. The stock trades at Price/Earnings ratio of 16.81 and thus is not an expensive stock.

GNC is set to report its earnings today. Data were not available at the time this article was completed.

Walgreen Offers New Product Lines

Walgreen Co. stock is on the roll and touched a new 52-week high lately. The stock is up 23 percent in the past 12 months and offers a dividend yield of 2.66 percent. The company's dividend is likely to remain safe as it has manageable dividend payout ratio of 45 percent. Walgreen is also projected to grow its EPS at the rate of 13.23 percent in the coming five years. For FY 2012, the company grew its front end sales. However, its same-store sales slumped marginally. The free report on Walgreen can be downloaded by signing up now at http://www.StockCall.com/WAG021113.pdf

The drug store company is diversifying its offerings as it plans to sell Televisa Consumer Products to gain traction among its Hispanic customers. It is also expanding overseas as it acquired 45 percent stake in Alliance Boots to gain foothold in Europe. The company spent $6.7 billion for this purpose and expects the acquisition to add 23 to 27 cents per share to its EPS. Like other drug companies, Walgreen also stands to benefit from increased life expectancy, which will lead to higher demand for drugs and therapies. The stock currently trades at Price/Earnings multiple of 18.57, which is slightly higher than the multiple sported by its competitors GNC Holdings, but Walgreen's future prospects justify the pricing.

About StockCall.com

StockCall.com is a financial website where investors can have easy, precise and comprehensive research and opinions on stocks making the headlines. Sign up today to talk to our financial analyst at http://www.stockcall.com

SOURCE StockCall.com

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
Using new techniques of information modeling, indexing, and processing, new cloud-based systems can support cloud-based workloads previously not possible for high-throughput insurance, banking, and case-based applications. In his session at 18th Cloud Expo, John Newton, CTO, Founder and Chairman of Alfresco, described how to scale cloud-based content management repositories to store, manage, and retrieve billions of documents and related information with fast and linear scalability. He addres...
SYS-CON Events announced today that StarNet Communications will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. StarNet Communications’ FastX is the industry first cloud-based remote X Windows emulator. Using standard Web browsers (FireFox, Chrome, Safari, etc.) users from around the world gain highly secure access to applications and data hosted on Linux-based servers in a central data center. ...
SYS-CON Events announced today that Venafi, the Immune System for the Internet™ and the leading provider of Next Generation Trust Protection, will exhibit at @DevOpsSummit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Venafi is the Immune System for the Internet™ that protects the foundation of all cybersecurity – cryptographic keys and digital certificates – so they can’t be misused by bad guys in attacks...
Aspose.Total for .NET is the most complete package of all file format APIs for .NET as offered by Aspose. It empowers developers to create, edit, render, print and convert between a wide range of popular document formats within any .NET, C#, ASP.NET and VB.NET applications. Aspose compiles all .NET APIs on a daily basis to ensure that it contains the most up to date versions of each of Aspose .NET APIs. If a new .NET API or a new version of existing APIs is released during the subscription peri...
The 19th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Digital Transformation, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportuni...
To leverage Continuous Delivery, enterprises must consider impacts that span functional silos, as well as applications that touch older, slower moving components. Managing the many dependencies can cause slowdowns. See how to achieve continuous delivery in the enterprise.
DevOps at Cloud Expo – being held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA – announces that its Call for Papers is open. Born out of proven success in agile development, cloud computing, and process automation, DevOps is a macro trend you cannot afford to miss. From showcase success stories from early adopters and web-scale businesses, DevOps is expanding to organizations of all sizes, including the world's largest enterprises – and delivering real results. Am...
SYS-CON Events announced today that eCube Systems, a leading provider of middleware modernization, integration, and management solutions, will exhibit at @DevOpsSummit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. eCube Systems offers a family of middleware evolution products and services that maximize return on technology investment by leveraging existing technical equity to meet evolving business needs. ...
DevOps at Cloud Expo, taking place Nov 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long dev...
SYS-CON Events announced today Telecom Reseller has been named “Media Sponsor” of SYS-CON's 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Telecom Reseller reports on Unified Communications, UCaaS, BPaaS for enterprise and SMBs. They report extensively on both customer premises based solutions such as IP-PBX as well as cloud based and hosted platforms.
Ixia (Nasdaq: XXIA) has announced that NoviFlow Inc.has deployed IxNetwork® to validate the company’s designs and accelerate the delivery of its proven, reliable products. Based in Montréal, NoviFlow Inc. supports network carriers, hyperscale data center operators, and enterprises seeking greater network control and flexibility, network scalability, and the capacity to handle extremely large numbers of flows, while maintaining maximum network performance. To meet these requirements, NoviFlow in...
Enterprises have forever faced challenges surrounding the sharing of their intellectual property. Emerging cloud adoption has made it more compelling for enterprises to digitize their content, making them available over a wide variety of devices across the Internet. In his session at 19th Cloud Expo, Santosh Ahuja, Director of Architecture at Impiger Technologies, will introduce various mechanisms provided by cloud service providers today to manage and share digital content in a secure manner....
StarNet Communications Corp has announced the addition of three Secure Remote Desktop modules to its flagship X-Win32 PC X server. The new modules enable X-Win32 to safely tunnel the remote desktops from Linux and Unix servers to the user’s PC over encrypted SSH. Traditionally, users of PC X servers deploy the XDMCP protocol to display remote desktop environments such as the Gnome and KDE desktops on Linux servers and the CDE environment on Solaris Unix machines. XDMCP is used primarily on comp...
As the world moves toward more DevOps and Microservices, application deployment to the cloud ought to become a lot simpler. The Microservices architecture, which is the basis of many new age distributed systems such as OpenStack, NetFlix and so on, is at the heart of Cloud Foundry - a complete developer-oriented Platform as a Service (PaaS) that is IaaS agnostic and supports vCloud, OpenStack and AWS. Serverless computing is revolutionizing computing. In his session at 19th Cloud Expo, Raghav...
In today's uber-connected, consumer-centric, cloud-enabled, insights-driven, multi-device, global world, the focus of solutions has shifted from the product that is sold to the person who is buying the product or service. Enterprises have rebranded their business around the consumers of their products. The buyer is the person and the focus is not on the offering. The person is connected through multiple devices, wearables, at home, on the road, and in multiple locations, sometimes simultaneously...