Schaeffer's Top Stock Picks for '25

Bulls Rally Around Walgreen Company (WAG) Ahead of Earnings

Walgreen Company is scheduled to unveil its fiscal 1Q earnings report tomorrow morning

Dec 22, 2014 at 3:10 PM
facebook X logo linkedin


Walgreen Company (NYSE:WAG) is slated to take its turn in the earnings confessional ahead of tomorrow's open, with Wall Street calling for a fiscal first-quarter profit of 75 cents for the drugstore chain. Over the past four quarters, the stock has averaged a single-session post-earnings gain of 1.2%, which may be why options traders have shown a slight bullish bias in the months leading up to tomorrow's scheduled event.

At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), WAG's 50-day call/put volume ratio of 1.95 ranks in the 60th percentile of its annual range. Echoing this call-skewed bias is WAG's gamma-weighted Schaeffer's put/call open interest ratio (SOIR) of 0.22, which indicates that near-the-money call open interest outweighs put open interest by a roughly 5-to-1 ratio among options slated to expire in three months or less.

This upbeat stance toward WAG is witnessed elsewhere on the Street, as well. Short interest, for example, accounts for a low 1.2% of the stock's available float, and would take less than three sessions to cover, at average daily trading levels. Plus, 60% of covering analysts maintain a "buy" or better rating toward the equity, with not a single "sell" to be found.

On the charts, Walgreen Company (NYSE:WAG) has tacked on an impressive 28.6% year-to-date. More recently, the stock shot through previous resistance in the $69-to-$70 region earlier this month on news of a CEO switch, and was last seen lingering near $73.86.

Daily Chart of WAG Since January 2014
 
 

You have the chance to join one of Bernie's most exclusive programs, complete access at HUGE savings!

As we prepare for a new administration to take the reins in Washington, the near-term market landscape is rife with uncertainty.

The Federal Reserve has already hinted at the turbulence ahead, lowering its interest rate outlook for 2025.

Meanwhile, breakthroughs in artificial intelligence (AI), quantum computing, and other transformative sectors have unlocked incredible profit potential.

But these opportunities are fleeting, and timing is everything. That's where Quick-Hit Trader comes in.

Quick-Hit Trader is designed for precision and speed, getting you in and out of the market in a flash. While other investors scramble to navigate volatile conditions, you'll have access to expertly curated trades that leverage these rapid shifts to deliver explosive profits in short order.

This is your chance to capitalize on the fast-moving market like never before. Are you ready to make your move?

 

 

(function(doc, script) { var js, fjs = doc.getElementsByTagName(script)[0], frag = doc.createDocumentFragment(), add = function(url, id) { if (doc.getElementById(id)) {return;} js = doc.createElement(script); js.src = url; id && (js.id = id); frag.appendChild( js ); }; // Google+ button //add('https://apis.google.com/js/platform.js', async="defer"); // Facebook SDK add('//connect.facebook.net/en_US/all.js#xfbml=1&appId=772755279557744', 'facebook-jssdk'); // Twitter SDK //add('//platform.twitter.com/widgets.js', charset='utf-8'); fjs.parentNode.insertBefore(frag, fjs); }(document, 'script'));