Top 10 Summer Stocks

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Top Summer Stock #7: Walgreen Co.

Sunscreen, sunburn ointment, ice chests, beverages, snacks, beach chairs and summer toys—you can purchase them all at Walgreen Co. (WAG). The national drugstore chain's shares have been on a tear of late, surging more than 40% from early March to mid-May. Driven by stable revenue growth, good cash flow from operations and a solid financial position, including reasonable debt levels, WAG shares are in the catbird seat to continue delivering outstanding summer returns.

According to CEO Gregory Wasson, the worst of the downturn in consumer spending may be over. He recently told the Wall Street Journal, "Most of us think the worst-case scenario we did in our planning is probably off the table." That's good news for the drugstore sector—and even better news for WAG this summer.

Our latest consumer spending survey has registered the clearest signs of an improvement in nearly two years. Get the results here.

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