Walgreen's success in obtaining premium store locations gives it an edge over competitors as it maintains its quality of real estate with the highest percentage of freestanding stores in the industry.
Walgreen's history of consistent earnings combined with the lack of evidence for a severe decline in the company's prospects suggest that WAG may be undervalued, especially in the long term.
Walgreen nearly quadrupled cash on hand FY09 while maintaining the trend in reducing shares outstanding. With nearly identical operating cash flows, WAG added $1644 to cash while top competitor CVS lost $266. Walgreen effectively holds more cash than CVS as of 05/10.
This company has a strong and loyal customer base. Most of its products are used in every day life and the need for these products is not affected much by changing economic circumstances.