In the latest trading session, Rite Aid (RAD) closed at $14.57, marking a -1.05% move from the previous day. This move lagged the S&P 500's daily gain of 0.47%. At the same time, the Dow added 0.4%, and the tech-heavy Nasdaq gained 0.87%.
Heading into today, shares of the drugstore chain had gained 13.4% over the past month, outpacing the Retail-Wholesale sector's gain of 3.92% and the S&P 500's gain of 1.43% in that time.
RAD will be looking to display strength as it nears its next earnings release. In that report, analysts expect RAD to post earnings of -$0.14 per share. This would mark year-over-year growth of 30%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.43 billion, up 0.9% from the year-ago period.
Investors should also note any recent changes to analyst estimates for RAD. These recent revisions tend to reflect the evolving nature of short-term business trends. 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. 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 has moved 13.23% higher. RAD is currently a Zacks Rank #1 (Strong Buy).
Digging into valuation, RAD currently has a Forward P/E ratio of 43.29. This valuation marks a premium compared to its industry's average Forward P/E of 10.09.
The Retail - Pharmacies and Drug Stores industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 57, which puts it in the top 23% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.