Rite Aid (RAD) closed at $13.08 in the latest trading session, marking a -1.36% move from the prior day. This change lagged the S&P 500's 0.9% gain on the day. Meanwhile, the Dow gained 0.56%, and the Nasdaq, a tech-heavy index, added 1.13%.
Prior to today's trading, shares of the drugstore chain had gained 9.68% over the past month. This has lagged the Retail-Wholesale sector's gain of 16.32% and the S&P 500's gain of 14.3% in that time.
Wall Street will be looking for positivity from RAD as it approaches its next earnings report date. 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%. Our most recent consensus estimate is calling for quarterly revenue of $5.60 billion, up 4.21% from the year-ago period.
RAD's full-year Zacks Consensus Estimates are calling for earnings of -$0.31 per share and revenue of $22.49 billion. These results would represent year-over-year changes of -306.67% and +2.54%, respectively.
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 a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 568.85% lower within the past month. RAD currently has a Zacks Rank of #4 (Sell).
The Retail - Pharmacies and Drug Stores industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 197, which puts it in the bottom 23% 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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