Walgreens sees stock drop as an aberration

After its shares dropped Wednesday to a 52-week low on the day of its annual shareholders meeting in Chicago, Walgreen Co. dusted itself off and its stock price rebounded more than 2 percent Thursday.

Expressing confidence to the 2,000-plus shareholders at the meeting about the company's future, CEO Jeffrey Rain said one reason for optimism is the company's success in acquiring hard-to-find pharmacists by luring them from other stores, along with their customer lists.

Some analysts feel the recent drop in stock price was overblown and that it has become undervalued.

"I think it was an aberration," said Andrew Wolf, an analyst with BB&T Capital Markets in Richmond, Va.

Walgreen closed Thursday at $34.52, up 77 cents.

"The year's growth was 18 percent … it was one of their better years. It just ended with a thud," Wolf said, referring to a weak fourth quarter ended Dec. 30.

David Magee, an analyst with Atlanta-based SunTrust Robinson Humphrey, agreed Walgreen is still healthy and positioned for growth. "They had a significant misstep during the fourth quarter, but it was just a misstep."

Earlier this month Walgreen announced it was purchasing pharmacy patient files from 27 Rite Aid Corp. stores in the Las Vegas metro area, the