On Apr 11, Zacks Investment Research upgraded Rite Aid Corporation (RAD - Analyst Report) to a Zacks Rank #1 (Strong Buy).
Why the Upgrade?
Rite Aid has been witnessing rising earnings estimates on the back of better-than-expected fourth-quarter fiscal 2014 results and it provided an impressive guidance for fiscal 2015. Moreover, this well-known drugstore chain retailer has beaten the Zacks Consensus Estimate by an average of 225% in the trailing four quarters. The long-term expected earnings growth rate for this stock is 17.5%.
The slide presentation before making a decision to sell or buy. My take the sellers are focused on the current bottom line figure and are not familiar with the opportunity and potential of SDN and NFV technologies.
Though it was not expected that the stock price would appreciate much from yesterday's close the earnings report did not introduce news that was not already known therefore to warrant irrational selling.