Should CVS and WAGS be valued higher than RAD due to more reliable earnings history? of course
Should CVS and WAGS be valued over 5 times higher on a p/s basis? of course not
Factor in the greater potential for revenue and earnings growth at Rite Aid and RAD still looks very undervalued compared to the other 2.
Sentiment: Strong Buy
proffitable quarters continue to stack up. More people realize this ship has turned into favorable winds, next move up will be fast. Don't miss the boat.
One more thing to factor in:
RAD Total liabilities MRQ: $9.3 Billion Down $400 million in the last year.
WAG Total liabilities MRQ: $16.86 Billion, UP $4.7 Billion in the last year.
CVS Total liabilities MRQ: $27.86 Billion, Down $60 Million in the last year.
RAD and CVS reducing their liabilities while WAG dramatically increased their liabilities.
Yes Walgreens seems to be the most overvalued of the three on multiple measures. If it weren't for the Express Scrips debacle last year, WAGS would look even worse on earnings growth and same store sales.
In terms of potential: