Buy Walgreen Company (WAG) Stock After the Q3 Miss?

The real key for Walgreen, though, is regaining more of the customers lost with the Express Scripts Holding Company (NASDAQ:ESRX) debacle. To that end, the company has signed up 75 million people in its Balance Rewards loyalty program. Around 60% of purchases in its stores are now made using the loyalty card. Walgreen is just beginning to realize the fruit from the program and should be able to customize its marketing more effectively going forward to keep existing customers and gain (or regain) others.

Analysts following the company expect that it will grow earnings more quickly in the next few years than it has over recent years. I suspect they’ll prove to be right. Walgreen isn’t likely to make further missteps with contractual agreements and should benefit from its renewed customer focus.

Over the long run, I think Walgreen Company (NYSE:WAG) stock should do well for investors. And its 2.3% dividend yield should help assuage at least a little bit of the pain felt with the occasional earnings miss.

The article Buy Walgreen Stock After the Q3 Miss? originally appeared on Fool.com and is written by Keith Speights.

Fool contributor Keith Speights has no position in any stocks mentioned. The Motley Fool recommends and owns shares of Express Scripts.

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