Walgreens’ (WAG) move into worksite clinics looks smart

Walgreens (WAG) recently acquired two firms that operate work site clinics, and Brian Klepper
explains why work site clinics might make it big for WAG and other companies. His article is must reading for investors trying to understand WAG’s latest acquisitions.

Work site clinics can work for small businesses as well as large employers, and

 

they can provide a return of investment of 3.1:1 for the employer, Klepper says.

But the question remains, why will employers go to the trouble of investing in work site clinics when so many health care policy wonks say it is time for employers to get out of the health care business?

The answer is pretty simple. It appears unlikely that the labor markets, unions or politicians will let employers get out of offering health insurance benefits to their employees.

Take a look at these charts for WAG, CVS and other heatlh care stocks that might be affected by the growth of work site clinics and walk in clinics. Click on any chart to see daily, weekly and point and figure charts. As of Friday’s close, WAG’s daily and weekly charts look bullish, but its point and figure charts have a bearish price objective of $26, down from Friday’s close of $37.90.

Full disclosure: I don’t own WAG or any of the other stocks shown.

For educational purposes only. Investigate before you speculate.

Commenting is not available in this weblog entry.

<< Back to main