In the latest trading session, Rite Aid (RAD) closed at $9.59, marking a -0.1% move from the previous day. This change lagged the S&P 500's daily gain of 0.08%. Elsewhere, the Dow lost 0.01%, while the tech-heavy Nasdaq lost 0.04%.
Heading into today, shares of the drugstore chain had gained 8.23% over the past month, outpacing the Retail-Wholesale sector's gain of 2.82% and the S&P 500's gain of 4.35% in that time.
Wall Street will be looking for positivity from RAD as it approaches its next earnings report date. The company is expected to report EPS of $0.03, down 85% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.43 billion, down 0.41% from the year-ago period.
It is also important to note the recent changes to analyst estimates for RAD. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. RAD currently has a Zacks Rank of #3 (Hold).
Investors should also note RAD's current valuation metrics, including its Forward P/E ratio of 80. For comparison, its industry has an average Forward P/E of 11.51, 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 177, putting it in the bottom 31% 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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