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Rite Aid (RAD) Outpaces Stock Market Gains: What You Should Know

Zacks Equity Research

Rite Aid (RAD) closed the most recent trading day at $12.61, moving +0.88% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.06%. Elsewhere, the Dow lost 0.15%, while the tech-heavy Nasdaq added 0.33%.

RAD will be looking to display strength as it nears its next earnings release, which is expected to be June 25, 2020. In that report, analysts expect RAD to post earnings of -$0.54 per share. This would mark a year-over-year decline of 285.71%. Meanwhile, our latest consensus estimate is calling for revenue of $5.60 billion, up 4.21% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of -$0.31 per share and revenue of $22.49 billion, which would represent changes of -306.67% and +2.54%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for RAD. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

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. The Zacks Consensus EPS estimate remained stagnant within the past month. RAD is holding a Zacks Rank of #3 (Hold) right now.

The Retail - Pharmacies and Drug Stores industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 92, which puts it in the top 37% 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.

To follow RAD in the coming trading sessions, be sure to utilize Zacks.com.

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