|Bid||7.56 x 1800|
|Ask||7.74 x 1800|
|Day's Range||7.50 - 7.88|
|52 Week Range||5.04 - 20.00|
|Beta (5Y Monthly)||1.73|
|PE Ratio (TTM)||N/A|
|Earnings Date||Dec 19, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||6.25|
New government data show that total health care spending in 2018 spiked 4.6%. That's a lot higher than income growth, which was just 3% in 2018. The reason: More Americans are foregoing health coverage, leading to a rise in health care spending nationwide.
Investors will be monitoring the trade war, a deluge of economic data and earnings reports from FedEx and Nike this week.
Amazon Prime members still have nearly two weeks to have purchases delivered while non-Prime shoppers only have a few more days for free delivery.
Rite Aid (RAD) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Rite Aid's (RAD) third-quarter fiscal 2020 results are expected to reflect progress on its growth strategy. Weak front-end same-store sales and Retail Pharmacy segment might have been drags.
Moody's Investors Service ("Moody's") today upgraded Rite Aid Corporation's ("Rite Aid") Probability of Default rating to Caa1-PD from Caa3-PD and appended the PDR with the "/LD" (limited default) designation. There is no change in the company's SGL-3 speculative grade liquidity rating.
Creative software leader Adobe (NASDAQ:ADBE) announced on Wednesday that it will be reporting Q4 and fiscal year 2019 earnings on Thursday, Dec. 12. Adobe stock has performed well this year, and at $303.03 it is up 34% so far in 2019. Will that growth continue? Here's what to expect from Adobe next week.Source: r.classen / Shutterstock.com Adobe will be reporting both its fourth-quarter and fiscal year 2019 earnings after the bell next Thursday. The first hint of what to expect came when the company updated investors on its third-quarter performance. Q3 Reaction to Q4 ADBE Earnings GuidanceThe company's Q3 earnings report on Sept. 17 resulted in ADBE stock dropping as much as 4% in after hours trading, before closing down 1.7% the following day. The reason for the negative market reaction? It wasn't the company's Q3 performance (it beat analyst expectations on both revenue and earning), but softer than expected guidance for Q4.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Hot Stocks for 2020's Big Trends Adobe told investors to expect EPS of approximately $2.25 per share on revenue for the quarter of roughly $2.97 billion. CNBC reported at the time that analysts had been expecting EPS of $2.30 per share on $4.03 in revenue. Coming in under expectations with that Q4 guidance spooked the market, resulting in a loss for ADBE stock instead of the gain one might expect for the Q3 beat.Following the negative reaction to the Q4 guidance, Adobe stock had a rocky patch for just over a month, eventually bottoming out at $261.09 on Oct. 22 before beginning a rally that extended to the end of November. Whatever trepidation the market had been feeling appears to have passed. Factors That Could Impact Adobe's Q4 EarningsIn June, ADBE unveiled its new AI-powered Adobe Experience Cloud, an update to its enterprise marketing and analytics offerings. That division saw slightly lower-than-expected earnings in Q3, but Adobe said at the time it would be boosting its investment in sales generation.It also delivered a big win with Rite Aid (NYSE:RAD), announcing in June that it would adopt Adobe Experience Cloud. If the promised marketing boost pays off, the company's enterprise revenue should get back on track for Q4. Creative Cloud business was up 22% year-over-year in Q3. In its guidance, the company says it expects to see 20% growth in Q4. That business accounted for 69% of Adobe's Q3 revenue, so if it comes out even slightly ahead of projections and closer to Q3 growth levels that will make a big difference.What about China? The trade war between the U.S. and China has impacted the performance of many tech stocks this year. However, Adobe says it has minimal exposure for either its creative or enterprise businesses.One thing thing to keep in mind -- despite the soft guidance for the quarter -- is that in three out of the last four quarters, Adobe has beaten consensus EPS estimates. Bottom Line for Adobe StockAdobe is one of those tech companies that successfully upended its business model to adapt to changing times. The company went from selling boxed software customers would buy a new version of every three to five years, to providing cloud-based monthly subscription access to its apps. After more than a decade of tepid growth, since going to a subscription-only model with its "Creative Cloud" in 2013, ADBE stock has grown in value by over 600%.Among investment analysts it's a consensus "buy" with a $323 median 12-month stock price target. Not spectacular performance expected there -- especially in comparison to the 34% growth posted in 2019 -- but there's still upside.Regardless of what happens in the short-term after the company's earnings report on Dec. 12, Adobe remains a solid long-term investment. As of this writing, Brad Moon did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Hot Stocks for 2020's Big Trends * 7 Lumbering Large-Cap Stocks to Avoid * 5 ETFs for Oodles of Monthly Dividends The post What to Expect From Adobe Stock Earnings appeared first on InvestorPlace.
This GivingTuesday, The Rite Aid Foundation is spreading gratitude across the nation by awarding nearly $2.1 million to partner charities through its Full of Thanks Holiday Program.
Rite Aid Corporation (RAD) said today that it will release financial results for its Fiscal 2020 Third Quarter, which ended Nov. 30, 2019, on Thursday, Dec. 19, 2019. The company will hold an analyst call at 8:30 a.m. Eastern Time with remarks by Rite Aid's management team. The telephone replay will be available beginning at 12 p.m. Eastern Time on Thursday, Dec. 19, 2019 and ending at 11:59 p.m. Eastern Time on, Dec. 21, 2019.
The ratings on the seven principal and interest (P&I) classes were affirmed because the transaction's key metrics, including Moody's loan-to-value (LTV) ratio, Moody's stressed debt service coverage ratio (DSCR) and the transaction's Herfindahl Index (Herf), are within acceptable ranges. Moody's rating action reflects a base expected loss of 2.3% of the current pooled balance, compared to 2.9% at Moody's last review. Moody's base expected loss plus realized losses is now 2.0% of the original pooled balance, compared to 2.7% at the last review.
Moody's rating action reflects a base expected loss of 21.8% of the current pooled balance, compared to 19.8.% at Moody's last review. For provisional ratings, this announcement provides certain regulatory disclosures in relation to the provisional rating assigned, and in relation to a definitive rating that may be assigned subsequent to the final issuance of the debt, in each case where the transaction structure and terms have not changed prior to the assignment of the definitive rating in a manner that would have affected the rating.
Rite Aid Corporation today announced the results and anticipated settlement of its previously announced cash tender offers to purchase up to $100 million aggregate principal amount of its outstanding 7.70% Senior Notes due 2027 and 6.875% Senior Notes due 2028 .
Rite Aid (NYSE:RAD) has been a slow-motion train wreck for years. Since its highs of $173 in early 2017 to its less than stellar lows of $5.50, investors have left RAD stock for dead.Source: NYCStock / Shutterstock.com And, it's all thanks to heavy competition that sent revenue streams plummeting, taking with it margins and profits with a debt-heavy balance sheet to boot. While the stores have a partnership in place with Amazon (NASDAQ:AMZN), even that won't save the stock.Granted, Rite Aid stock has shown some signs of life in recent weeks, rallying just above $10. It even just broke above double-top resistance, and pushed above its 200-day moving average. Unfortunately, as technically attractive as that may appear, it's only a temporary reprieve.InvestorPlace - Stock Market News, Stock Advice & Trading TipsFundamentally, RAD stock is still struggling -- with no signs of improvement. Compounding the issue, management has no clear way to fix the situation. Therefore, the RAD stock price has no clear catalyst to push it higher and keep it there.In my opinion, investors would be smart to avoid Rite Aid stock altogether. Deciphering the Writing on the WallTo be sure, new CEO Heyward Donigan, the company is taking steps to return to profitability. "I see tremendous opportunity to revitalize the company's position as a leader in meeting the health and wellness needs of customers and patients through our store and pharmacy benefit management platforms," Donigan stated at the time of her hiring in August. * 7 Earnings Losers That Were Hit Hard This Season She told participant on the company's September 2019 conference call Rite Aid is ripe for a turnaround, as it "… needs a clear new strategic vision and a pathway to execution that drives future organic growth and profitability."As for trends in the industry, RAD stores have joined rivals CVS Health (NYSE:CVS) and Walgreens Boots Alliance (NASDAQ:WBA) carrying cannabis-derivative products made with the increasingly popular cannabinoid known as cannabidiol (CBD). In the cannabis space more broadly, there are at least 23 industries looking to capitalize on the growing legalization of marijuana, according to AgFunder News. Those sales could offset or top what Rite Aid gave up earlier this year when it announced it would no longer sell electronic cigarettes amid what then called an "epidemic" of teen vaping; in retrospect, they were ahead of the news.Source: Statista.comWhile she mentioned that health insurance plans could be key to a turnaround, we have to consider management is struggling under the weight of monster debt of more than $3.5 billion. To be honest, unless something miraculous happens, RAD stock is a dud. * 7 Under-the-Radar Retail Stocks to Buy Now "You have a debt-burdened specialty retailer that was slow to pivot to e-commerce disruption, meaning bigger peers have passed the company up and consumers have mostly abandoned stores. Now, because Rite Aid's cash flows are constrained and have to go toward paying off debt, the company doesn't have the necessary firepower to make this pivot and compete," Investorplace contributor Luke Lango wrote last month. Bottom Line on Rite Aid StockRAD stock is banking on a turnaround underdog story with a new CEO at the helm. Unfortunately, with heavy debt burdens, poor management, and no real plan to move the needle, I would avoid RAD stock like the plague. The writing is on the wall here. While the stock could move higher on hope short-term, the long-term story is not good. You can find better investment opportunities elsewhere. For me, Rite Aid is a dud.As of this writing, Ian Cooper did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Stocks to Sell Before They Roll Over * 5 Beaten-Up Stocks to Buy That Could Be Saved By An Acquisition * 4 Startup Stocks Getting Smashed The post Even With New CEO, Debt-Laden Rite Aid Stock is Best Avoided for Near Term appeared first on InvestorPlace.
Back in mid-July, I wrote on InvestorPlace that it looked like shares of beaten up pharmacy retailer CVS (NYSE:CVS) were ready to breakout higher. The headwinds, which had plunged shares into dirt-cheap territory, were going to ease going forward, meaning that there was no reason for the dirt-cheap valuation to stick around.Source: Shutterstock Fast forward four months. CVS stock has risen 25% -- to the S&P 500's 3% gain over that same stretch -- thanks to exactly that. Headwinds have eased and have been replaced by tailwinds. The numbers and narrative have improved. Investors are realizing CVS stock shouldn't be this cheap. So they are gobbling up shares in bulk, and CVS stock is flying higher.The most recent update here is that CVS reported very strong third quarter numbers in early November that were much better-than-expected on all fronts. All of the businesses are growing, profitability is improving, and the balance sheet is being cleaned up. The outlook is also getting brighter.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Stocks to Sell Before They Roll Over The implication from this earnings report is that at just 10-times forward earnings, CVS stock isn't priced for the company to be on such a roll. This discrepancy means that CVS stock should continue to outperform for the foreseeable future. CVS Is Marching HigherIf the third quarter print confirmed anything, it is that CVS is on a roll thanks to new growth initiatives.Taking a step back, the big picture here is that CVS is a specialty pharmacy retailer that once co-existed with the likes of Walgreens (NASDAQ:WBA), Rite Aid (NYSE:RAD), and others in the specialty pharmacy world. Then, more players moved more aggressively into the space, including Amazon (NASDAQ:AMZN), Walmart (NYSE:WMT), Target (NYSE:TGT), and a slew of online pharmacies. This competition surge created traffic and margin headwinds for CVS, and CVS revenues, profits, and stock price have consequently all sunk over the past few years.The writing was on the wall. CVS needed to differentiate itself in order to survive the competition surge in the specialty pharmacy retail world.That's exactly what they did, and the Q3 numbers imply that these new initiatives are working. CVS acquired Aetna, and has since leveraged that acquisition to launch HealthHUB concept stores, which are focused on personalized and localized healthcare services. These HealthHUB stores performed exceptionally well in Q3.At the same time, CVS has doubled down on MinuteClinic services, and success of these services is a key reason why the company's retail business continues to tick higher. New programs like Maintenance Choice are driving materially positive revenue and profit gains in the pharmacy segment as well.The whole CVS growth narrative is perking up thanks to new growth initiatives, which have successfully differentiated CVS from the pack in the specialty pharma retail world. Importantly, this differentiation paves the path for the CVS growth trajectory to continue to improve over the next few years. Shares Remain Unreasonably CheapGiven that the CVS growth trajectory projects to keep improving thanks to successful differentiation, CVS stock is unreasonably cheap at current levels.Just look at the multiples: * Forward P/E: 10 * 5-Year average forward P/E: 13 * Sector average forward P/E: 14 * Market average forward P/E: 17 * Consumer discretionary sector average forward P/E: 21In other words, relative to its historical self, CVS stock is trading at a 20%-plus discount today. Relative to peer stocks across various other industries, the stock is trading a discount of anywhere between 30% and 50%.That's just too cheap for CVS stock. At one point in time, this discount was warranted given the bleak growth prospects. But, the growth prospects today are starting to perk up thanks to successful differentiation of the business model through HealthHub, MinuteClinics, Maintenance Choice, and more. The balance sheet is also being deleveraged, so there remains little reason why shares should be so cheap.The implication? Shares won't remain this cheap for long. So long as CVS stays on a roll, the multiple underlying CVS stock will continue to expand, and this consistent expansion will keep CVS stock on a healthy uptrend. Bottom Line on CVS StockI loved CVS stock back in July when it was down around $50. I still like CVS stock up here around $70. Shares remain too cheap given the company's improving growth prospects. This favorable discrepancy will keep CVS stock on a solid uptrend for the foreseeable future.As of this writing, Luke Lango was long CVS and WMT. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Stocks to Sell Before They Roll Over * 5 Beaten-Up Stocks to Buy That Could Be Saved By An Acquisition * 4 Startup Stocks Getting Smashed The post Stick With the Rally in CVS Stock appeared first on InvestorPlace.
A growing number of skeptics are casting doubt on the financial case for taking Walgreens Boots Alliance private in a debt-financed buyout.
Real Estate Roundup is a weekly rundown of developments in the world of industrial real estate used for logistics and transportation. This week: a gas station chain scouts sites; Rite Aid unloads facilities; is micro-fulfillment a way to cut costs? Casey's General Stores, one of the largest convenience store and gas station chains in the Midwest, is running out of room at its two distribution centers and is scouting sites for a new facility.
Rite Aid Corporation (RAD) (“Rite Aid” or the “Company”) today announced that it has increased the offer price and extended the early tender premium for its previously announced cash tender offers (the “Tender Offers”) to purchase up to $100 million aggregate principal amount of its outstanding 7.70% Senior Notes due 2027 (“2027 Notes”) and 6.875% Senior Notes due 2028 (the “2028 Notes” and together with the 2027 Notes, the “Notes”). Under the new terms of the Tender Offers, (i) the Total Consideration for each series of Notes has been increased to $667.50 in cash per $1,000 principal amount of Notes, as set forth in the table below, and (ii) the payment of the Early Tender Premium has been extended to 11:59 p.m., New York City time, on November 12, 2019. Accordingly, the Early Tender Time and the Expiration Time for the Tender Offers will now be the same.