In the latest trading session, Rite Aid (RAD) closed at $9.17, marking a +1.21% move from the previous day. This move outpaced the S&P 500's daily loss of 0.08%. At the same time, the Dow lost 0.07%, and the tech-heavy Nasdaq lost 0.59%.
Heading into today, shares of the drugstore chain had gained 30.36% over the past month, outpacing the Retail-Wholesale sector's gain of 3.2% and the S&P 500's gain of 2.7% in that time.
Wall Street will be looking for positivity from RAD as it approaches its next earnings report date. On that day, RAD is projected to report earnings of $0.03 per share, which would represent a year-over-year decline of 85%. Our most recent consensus estimate is calling for quarterly revenue of $5.43 billion, down 0.41% from the year-ago period.
Investors might also notice recent changes to analyst estimates for RAD. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. RAD is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that RAD has a Forward P/E ratio of 75.5 right now. For comparison, its industry has an average Forward P/E of 9.44, which means RAD is trading at a premium to the group.
The Retail - Pharmacies and Drug Stores industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 101, putting it in the top 40% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Rite Aid Corporation (RAD) : Free Stock Analysis Report
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