5.29 -0.02 (-0.38%)
After hours: 7:46PM EDT
|Bid||5.29 x 900|
|Ask||5.32 x 800|
|Day's Range||5.30 - 5.65|
|52 Week Range||5.21 - 29.60|
|Beta (3Y Monthly)||1.70|
|PE Ratio (TTM)||N/A|
|Earnings Date||Jun 26, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||6.33|
Piper Jaffray initiates CV Sciences with an overweight rating and a price target that reflects an upside of more than 60%. CV Sciences CEO Joe Dowling joins Yahoo Finance's Zack Guzman and Sibile Marcellus, along with Carleton English, New York Post Hedge Fund Reporter, to discuss.
Rite Aid, CBS, Viacom, BlackRock, Ford and Anheuser-Busch are the companies to watch.
In recent years, Rite Aid (NYSE:RAD) stock has done little more than fight to survive. The Camp Hill, Pennsylvania-based pharmacy chain has long struggled against its peers and has failed at multiple attempts to sell itself to a competitor. This resulted in shareholders approving a 1-20 reverse stock split in April to avoid delisting. However, this did little to stem the tide.Source: Shutterstock The company temporarily boosted optimism when it joined the Amazon (NASDAQ:AMZN) delivery network. However, excitement over the deal quickly faded. Plus, a change in the CEO position has failed to stem the drop in the RAD stock price. Without a deeper partnership with Amazon, I see little reason to buy Rite Aid stock. Amazon Deal Brought Only Temporary ReliefThe Amazon deal initially sparked hope as it would increase foot traffic into Rite Aid stores. There's some logic to this argument. As our own Will Ashworth argues, the Amazon return program at Kohl's (NYSE:KSS) led to a 9% rise in foot traffic and an 8% revenue increase in stores which supported the return program. But will that be enough?InvestorPlace - Stock Market News, Stock Advice & Trading TipsI think some also hope this will lead to an Amazon purchase of Rite Aid itself. Such optimism has brought disappointment before. An attempt by Walgreens Boots Alliance (NASDAQ:WBA) to take over the company led instead to the sale of 1,932 Rite Aid stores to the pharmacy chain. Albertsons also tried to buy Rite Aid. This proposed union also fell through after RAD shareholders balked. * 10 Marijuana Stocks That Could See 100% Gains, If Not More Moreover, the Amazon deal failed to cure the ills of Rite Aid stock. Within a month, RAD stock had fallen to levels it saw before the Amazon announcement. Also, the recent ascendancy of Heyward Donigan to the CEO position has not stemmed the decline. Rite Aid Can No Longer CompeteAs a result, the RAD stock price now stands at about $5.60 per share. Certainly, Amazon and online sales have changed the dynamics of the pharmacy business for Rite Aid and its peers. Standalone pharmacies have long dealt with competition from both grocers and major retailers.Now with the threat of online competitors, margins feel more pressure than ever. This probably explains some of the reasons why CVS (NYSE:CVS) entered the insurance business and built in-house clinics.Rite Aid cannot follow suit. Just as the company needs to make significant changes to survive, RAD finds itself with both falling revenue and profits. Unfortunately, as a $300 million company with $6.4 billion in long-term debt, it has no financial room for such a pivot.Put simply, RAD stock has become the Sears Holdings (OTCMKTS:SHLDQ) or the JCPenney (NYSE:JCP) of pharmacies. Rite Aid has evolved into the type of business that consumers do not need in today's world.The fact that its typical customer is over 55 and earns under $40,000 per year does not bode well for its future. Moreover, competition forces it to sell what it does offer at thin margins. Unless and until Amazon or another major online retailer can make Rite Aid relevant, I see a dim future for RAD stock. The Bottom Line on RAD StockOnly a deeper partnership with Amazon can save Rite Aid. The changing retail pharmacy landscape has fundamentally changed Rite Aid's business. Unlike Walgreens and CVS, it lacks the necessary resources to improve its business and remain relevant. Debts remain too high, and numerous suitors have passed on what remains of Rite Aid.If results at Kohl's serve as an indication, Rite Aid stores will see more foot traffic and revenue. However, this does not change the fact that consumers can find anything Rite Aid offers elsewhere and probably at a lower price.If Amazon took over the stores entirely, perhaps the company could still play a significant role in today's pharmacy business. Barring that scenario, the time has come to think of Rite Aid stock as the next Sears.As of this writing, Will Healy did not hold a position in any of the aforementioned stocks. You can follow Will on Twitter at @HealyWriting. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Marijuana Stocks That Could See 100% Gains, If Not More * 11 Stocks Under $10 to Buy Now * 6 China Stocks to Buy on the Dip The post Rite Aid Stock Continues to Fade into Irrelevance Despite Amazon appeared first on InvestorPlace.
One of my favorite things to do in the market is buy the dip in beaten up and undervalued stocks, but, only when doing so makes sense. When it comes, the reality is that buying the dip in Rite Aid (NYSE:RAD) simply doesn't make sense right now. Rite Aid has a long way to go.Source: Shutterstock The fundamentals are broken. The chart is broken. Investor sentiment is dour. There has been C-suite turnover. And, above all else, the outlook for a turnaround remains as bleak today, as it's ever been.As such, the most likely path forward for Rite Aid is lower revenues, lower profits, lower margins, and a lower stock price.InvestorPlace - Stock Market News, Stock Advice & Trading TipsTo be sure, there is a pathway here through a unique Amazon (NASDAQ:AMZN) partnership wherein RAD stock turns into a multi-bagger from current levels. But, that pathway lacks visibility and tangibility here and now. Until that pathway gains visibility and tangibility, Rite Aid stock isn't worth the risk. * 10 Cheap Dividend Stocks to Load Up On As such, the investment implication with RAD stock is crystal clear. First, sell now and stay away for the foreseeable future. Second, monitor the company and see if the Amazon catalyst does boost the numbers next quarter. Third, if it does, buy into the rebound. If it doesn't, continue to stay away until it does (if ever). Stay Away From Rite Aid Stock For NowThe big picture reality here is that Rite Aid is a broken company with very dour go-forward growth prospects.At one point in time, Rite Aid was a large pharmacy plus convenience store with a wide reach and busy stores. That was before the ecommerce era. Now, consumers can basically get everything they got at a Rite Aid 20 years ago, from Amazon, Walmart (NYSE:WMT), or CVS (NYSE:CVS) today, without ever having to leave their homes and probably at lower prices, too.Even further, because Rite Aid has struggled significantly over the past several years, the company has been left consistently cash-strapped. That means the company hasn't put as much money back into its stores or operations as peers.The result? Two-fold. One, Rite Aid's stores often look outdated next to Walmart or Target (NYSE:TGT) stores, which now have self check-out kiosks. Two, Rite Aid's e-commerce business isn't as built out as peer e-commerce businesses.As such, Rite Aid is the laggard in the pharmacy retail world today. Given its lack of resources, Rite Aid stock projects as the laggard for the foreseeable future, too. That means revenues will keep dropping. Margins will suffer from that loss of revenue scale. Profits will consequently drop more.As go profits, so go stocks. Thus, so long as this profit erosion trend remains in place, RAD stock will likely continue to slide lower. The Amazon Catalyst and Rite Aid StockThe bull thesis on RAD stock centers around a recent partnership with Amazon sparking a reversal in the current profit erosion trend at Rite Aid.This could happen. Rite Aid recently became a "fulfillment center" of sorts in Amazon's rapidly expanding distribution. That means Amazon customers can now pick up their Amazon.com orders in Rite Aid stores, which further means that Amazon customers will start going into Rite Aid stores.That's big, mostly because Amazon.com shoppers don't typically go into Rite Aid stores. Rite Aid's core shopper base is 55 & up and makes less than $40,000 a year. Amazon.com shoppers, on the other hand, skew young and rich aka, not Rite Aid shoppers.Most of these Amazon.com shoppers will likely walk into a Rite Aid store, say why would I ever shop here, pick-up their Amazon.com orders, and promptly leave. But, some of them could stick. That is, some will walk in, see something they like in the Rite Aid store (maybe Thrifty ice cream) and start shopping at Ride Aid with greater frequency.That's a long-running tailwind. Those Amazon.com shoppers are young, and their purchasing power is only going up. Thus, if some of those shoppers start shopping at Rite Aid in greater frequency, Rite Aid's revenues, margins, and profits will set out on a secular, multi-year uptrend.If that happens, RAD stock could be a multi-bagger from current levels, but, that's a big "if." As such, investors are best to wait for confirmation that this is happening, before taking a bet on a stock that has been a falling knife for several years. Bottom Line on Rite Aid StockI don't think all hope is lost for Rite Aid stock. Instead, I do think that the Amazon partnership could spark a huge fundamental trend reversal which ultimately causes RAD stock to double or triple from current levels.But, I also peg the likelihood of that reversal materializing at "very low." As such, the best thing to do here is to sell RAD stock and stay away until the numbers confirm that the Amazon partnership is providing a meaningful boost to Rite Aid's numbers.As of this writing, Luke Lango was long AMZN, WMT, CVS, and TGT. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Cheap Dividend Stocks to Load Up On * The 10 Biggest Losers from Q2 Earnings * 5 Dependable Dividend Stocks to Buy The post Don't Count on Amazon to Save Rite Aid Stock Just Yet appeared first on InvestorPlace.
News that struggling drugstore chain Rite Aid (NYSE:RAD) has selected a new CEO wasn't the change shareholders were hoping for, if the recent RAD stock price plunge is any indication. Shares have fallen more than 20% since the 12th of August, when the company announced Heyward Donigan would be replacing John Standley as CEO, effective immediately.Source: Shutterstock Of course, poor performance may have been in the cards anyway. Rite Aid stock has been losing ground since the beginning of 2017, when Walgreens Boots Alliance (NASDAQ:WBA) first started to waffle on its plans to acquire the struggling company. By early 2018, the deal was pared back to only 1932 stores, and a price tag of only $3.6 billion.It's not enough cash for the company, now only 2500 stores strong, to buy its way out of the trouble it found itself in a few years back. Thank the competition from bigger CVS Health (NYSE:CVS) as well as Walgreens for that.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Stocks Under $5 to Buy for Fall New leadership sometimes breathes new life into an old company though. In that light, Donigan's placement may well mark a turning point for Rite Aid, and by extension, for RAD stock.On the other hand, the crux of Rite Aid's woes aren't particularly elusive. The company lacks the scale Walgreens and CVS Health now enjoy, further exacerbating the fact that the drugstore chain has to spend too much for too little. Rite Aid Needs to Think BiggerIt's not from a lack of trying that Rite Aid has been unable to dig its way out of trouble. If nothing else, it has willingly been creative.Case in point: In June, it allowed Amazon (NASDAQ:AMZN) to establish parcel pickup lockers in 100 stores, with plans to offer online shopping deliveries at 1500 stores by the end of the year. That added foot traffic might lead more consumers into Rite Aid stores, where they just might make a separate purchase. The company is also testing telehealth options.The growth prospects of such initiatives are modest. Amazon's package pickup program may only draw a handful of additional consumers into any given store on any given day. Meanwhile, CVS plans to open actual medical clinics within 1500 of its 6200 stores by 2021 … an arguably better option than a virtual doctor's visit.Ergo, Rite Aid's biggest problem -- the aforementioned lack of scale -- remains a big problem. That is, it's not selling enough goods at the right price to adequately pay its bills. Selling stores to rival Walgreens rather than fixing those locales may have ultimately worsened the problem.Quantitative information affirms the qualitative idea. RAD Stock by the NumbersIt's curious. On a gross margin basis, Rite Aid outperforms or at least mirrors its rival pharmacy chains. In other words, the difference between its cost of merchandise and its retail price of that merchandise sold is as it should be.Where Rite Aid falls oddly short is in span between the income statement's gross profit figure and its EBITDA (earnings before interest, taxed and depreciation) figure. The pharmacy chain is only converting about half the revenue into earnings that its chief rivals are. The company's EBITDA rate, as a percentage of sales, are consistently less than half.There's only one key line between those two numbers on an income statement, by the way … selling and general/administrative expenses. Rite Aid's are considerably more than CVS Health's, and notably higher than Walgreens'. While the differences may look and feel modest for other types of industries, in the retailing arena where margins tend to be thin, the differentials are significant.Donigan's first task may be simply to figure out where that SG&A money is going.Some cost-cutting on that front may be able to restore an ever-shrinking cash flow that has limited the company's capacity to invest in its own growth. In fact, after years of steady declines, the company's operating cash flow has turned negative as of 2019. Bottom Line for RAD StockEasier said than done, to be fair. Some expenses are static and don't scale. Advertising expenses, for instance, cost from one organization to another regardless of how many stores are benefitting from those ads.Also bear in mind that Rite Aid operates a pharmacy benefits management outfit, and CVS is now teamed up with health insurer Aetna. The margin profiles described above aren't perfect apples-to-apples comparisons.These companies are akin enough to take note of the surprisingly wide scope of EBITDA margin and administration spending disparities. They're more alike than different and the numbers should be closer together.Only time will tell if patient owners of RAD stock will eventually be rewarded for that patience, just as only time will tell if Heyward Donigan will accept the fact that her company is smaller than its rivals, and must adjust accordingly where she can.There's little doubt, however, as to where and how Rite Aid is missing an opportunity. And the RAD stock price rebound may struggle to last until costs are curbed, even if culling those costs makes things tough.As of the time of this writing, James Brumley did not hold a position in any of the aforementioned securities. To learn more about James, visit his site at jamesbrumley.com, or follow him on twitter at @jbrumley. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Cheap Dividend Stocks to Load Up On * The 10 Biggest Losers from Q2 Earnings * 5 Dependable Dividend Stocks to Buy The post New Rite Aid CEO Needs More Than Amazon Partnership to Drive RAD Stock Higher appeared first on InvestorPlace.
Rite Aid (RAD) announced today that seasonal flu shots are available at all 2,466 Rite Aid pharmacies. Patients can get ahead of the lengthy flu season by visiting any Rite Aid to receive a flu shot from one of the company’s more than 6,300 certified immunizing pharmacists, subject to state regulations. “Although last year’s flu season was less severe than the year before, it was the longest in 10 years.
If you're thinking of shopping for Rite Aid (NYSE:RAD) stock on its much-hyped, package pick-up collaboration with Amazon (NASDAQ:AMZN), be prepared to buy some Tylenol or Pepto Bismol for home delivery at the same time. Let me explain.Source: Shutterstock Chipotle (NYSE:CMG), Equifax (NYSE:EFX) or Wells Fargo (NYSE:WFC) -- each brand has bounced back in recent years from high profile wrongdoings. The thing is, scandals can be sorted out and time helps in healing those past wounds. Too bad, that's not the problem with RAD stock.Rite Aid's problem is the same one many once-great brick-and-mortar shops are going through or have bowed to already. More and more buying is transacted online with those goods being dropped straight to your doorstep. And chances are, Amazon has been a key player in this bearish market dynamic, even for a storefront like RAD stock.InvestorPlace - Stock Market News, Stock Advice & Trading TipsSure, Amazon has backed away from entering the prescription business. But Amazon already sells a line of over-the-counter private-label medicines. Its Basic Care line offers a range of products from ibuprofen to allergy medicine. Amazon is also pursuing the medical community to purchase common and disposable items from rubber gloves, syringes to gauze from its Amazon Business site. And that's certainly at the expense of RAD stock.RAD stock has another big problem too. Rite Aid isn't a store known to attract foot traffic from the all-important millennial demographic. Sorry … Rite Aid just isn't "cool." And sadly, even the population Rite Aid has captured is getting older and less likely to be hopping in the car or walking to Rite Aid to pick up stockings, Certs and a prescription. * 10 Real Estate Investments to Ride Out the Current Storm But before I pronounce RAD stock as being D.O.A., could Amazon be both a villain and savior for RAD stock? There are investors who believe the new Amazon Counter pick-up option for Amazon purchases at Rite Aid stores could be a prescription for success.The bull case rests on the hypothesis that influential millennials flush with cash, who otherwise wouldn't be caught stepping foot in a Rite Aid store, will now be waiting in line by the dozens and invariably be making additional impulse purchases from Rite Aid before exiting. RAD Stock Monthly ChartOn the surface, the deal sounds kind of interesting. But don't hold your breath on RAD stock. Most Amazon packages aren't going to be dropped off at Rite Aid. And for those few packages that aren't received at one's doorstep, office or neighbor's house, consumers have a choice of where they want to pick the delivery up from. And guess what? That's probably bad news for Rite Aid's service.The fact is for those few boxes, packages and envelopes which don't go to the doorstep, there's already options for picking up merchandise. Consumers have a choice of Amazon Lockers at various convenience stores and even standalone Amazon storefronts to pick up items from. Further, with the partnership just underway and starting with 100 Rite Aid stores but promising 1,500 by year end, it's still going to be a tough proposition to get Millennials, let alone anyone else that normally wouldn't be in a Rite Aid already, into a Rite Aid store and make an actual difference in RAD stock's bottom line. * 7 Stocks the Insiders Are Buying on Sale Think about this as well, what's to stop Amazon from opening up its Counter distribution network into other retailers and hindering Rite Aid's chances even more? And finally, let's be real … given today's existing and more discreet options where communication is minimized and hassle free from checkout lines, the choices for millennials to pick up packages were already in place before Rite Aid's Amazon Counter.So, before you consider investing in Rite Aid stock, take a look at the stock chart and note that while the ginormous bottoming pattern certainly holds the allure of something special, you need to be smart. Think long and hard about today's message, the obvious, existing problems the company faces and RAD's nearly 30% in short interest as fair warning.Disclosure: Investment accounts under Christopher Tyler's management do not currently own positions in any securities mentioned in this article. The information offered is based upon Christopher Tyler's observations and strictly intended for educational purposes only; the use of which is the responsibility of the individual. For additional options-based strategies, related musings or to ask a question, you can find and follow Chris on Twitter @Options_CAT and StockTwits. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Real Estate Investments to Ride Out the Current Storm * 7 Marijuana Penny Stocks to Consider for Those Who Can Handle Risk * 7 Safe Dividend Stocks for Investors to Buy Right Now The post Think Amazon Will Save Rite Aid Stock? Think Again. appeared first on InvestorPlace.
Rite Aid Corp. has named longtime health-care executive Heyward Donigan chief executive officer. “Heyward’s strong senior executive experience, proven leadership capabilities and consistent track record of driving profitable growth, as well as her broad health-care knowledge and digital shopping technology expertise set her apart,” said Bruce Bodaken, chairman of Rite Aid's (NYSE: RAD) board of directors, in a company statement issued on Monday.
Rite Aid, CBS, Viacom, BlackRock, Ford and Anheuser-Busch InBev are the companies to watch.
Rite Aid said in early March that John Standley would tep down as CEO, and on Monday the company said Donigan will take over the position effective immediately. Donigan's recent experience includes the role of president and CEO of Sapphire Digital, formerly Vitals, a maker of omnichannel platforms to better help consumers select health care providers. Donigan's acceptance of the CEO title marks an "important step" for Rite Aid to better position itself for the future, Bruce Bodaken, chairman of Rite Aid's board, said in a statement.
Rite Aid Corp. said Monday it named Heyward Donigan as its chief executive officer, effective immediately. The stock climbed 3.9% in premarket trading. The drugstore chain said Donigan replaces John Standley, who steps down as planned after nine years in the role. Donigan was most recently CEO of Sapphire Digital, which develops omnichannel platforms that help consumers choose their best healthcare providers. "Over the past several months the Rite Aid Board conducted a thorough search, and Heyward's strong senior executive experience, proven leadership capabilities and consistent track record of driving profitable growth, as well as her broad healthcare knowledge and digital shopping technology expertise set her apart," said Chairman Bruce Bodaken. The stock has tumbled 49.2% year to date through Friday, while the S&P 500 has climbed 16.4%.
Rite Aid Corp on Monday named Heyward Donigan as chief executive officer, hoping to use her expertise in managing healthcare companies to stem sales declines at the drugstore chain due to intense competition. Brick-and-mortar drug retailers have been hit as Americans are increasingly relying on online retailers such as Amazon.com to buy over-the-counter treatments and as more customers purchase low-cost generic drugs. Last week, Walgreens Boots Alliance Inc said it plans to close about 200 stores in the United States as part of its cost management program aimed at mitigating the pressure related to generic drug prices.
Rite Aid Corporation (RAD) announced today that the Board of Directors has appointed Heyward Donigan as chief executive officer and a member of the Board, effective immediately. As planned, John Standley will step down from his role as chief executive officer in connection with this announcement. “Today's announcement is an important step in positioning Rite Aid for the future, and we are confident that Heyward is the right person to lead the company in capitalizing on the opportunities in the evolving healthcare environment,” said Bruce Bodaken, chairman of Rite Aid's Board of Directors.
Donigan will replace John Standley, who will step down as CEO in connection with the announcement. "Over the past several months the Rite Aid Board conducted a thorough search, and Heyward's strong senior executive experience, proven leadership capabilities and consistent track record of driving profitable growth, as well as her broad healthcare knowledge and digital shopping technology expertise set her apart," said Bruce Bodaken, chairman of Rite Aid's board.
It's been a long ride down for shares of Rite Aid (NYSE:RAD) over the past several years. Back in 2017, the split-adjusted price of Rite Aid stock was north of $170. Today, RAD stock trades hands around $7. That is a 95%-plus decrease in Rite Aid stock price in less than three years. For comparison purposes, the S&P 500 is up more than 30% over that same stretch.Source: Shutterstock In other words, Rite Aid's track record isn't great, and the company hasn't given investors any reason to believe that this huge multi-year downtrend will reverse course anytime soon.Last quarter, Rite Aid's revenues and earnings both missed expectations, with revenues that were flat year-over-year, margins that were down year-over-year, and a net loss that more than doubled year-over-year.InvestorPlace - Stock Market News, Stock Advice & Trading TipsBut, while Rite Aid's numbers haven't given investors any reason to believe a RAD stock recovery is around the corner, Rite Aid bulls have found strength from an unusual source: Amazon (NASDAQ:AMZN), the former Rite Aid and physical retail killer that recently added Rite Aid to its sprawling delivery network. * 8 Dividend Aristocrat Stocks to Buy Now No Matter What That's great news for RAD stock. Indeed, it's the type of news that could put an end to this stock's multi-year sell-off.At the same time, it's also the type of news that could be just hype. And, because Rite Aid stock has been such a big loser for so long, investors have given up on hope. Instead, investor sentiment is significantly depressed. Thus, until the Amazon catalyst actually shows up on the income statement, the sell-off in RAD stock will persist. Amazon Could Save the Day for Rite AidIn the big picture, Amazon could save the day for Rite Aid, and spark a huge turnaround in RAD stock.The bull thesis is pretty straightforward. Amazon is increasingly looking to expand its shipping network at a low cost. To that end, Amazon is partnering with existing brick-and-mortar retailers to turn those brick-and-mortar retail locations into Amazon delivery locations, or places where Amazon shoppers can pick up their Amazon.com orders.Amazon recently added Rite Aid to that delivery network. That means that millions of Amazon shoppers will presumably start going to Rite Aid stores to pick up their Amazon.com orders.Of those millions, a few hundred thousand will probably buy a candy bar on the way out. Maybe even a few million do. That should provide a nice bump to Rite Aid's revenues.But, more important, those millions of Amazon shoppers are consumers who normally don't go to Rite Aid stores. Rite Aid's core shopper base is 55 & up and makes less than $40,000 a year.Amazon.com shoppers, on the other hand, skew young and rich. That young and rich cohort has a lot of spending power, and they will have a lot of spending power for a long time. Yet, most of them aren't going to Rite Aid stores because they haven't had a reason to.Until now.The bull thesis is that of these millions of young, rich Amazon.com shoppers who go to Rite Aid stores to pick up their Amazon.com orders. A handful will go into Rite Aid stores, and like what they see - maybe it's something as silly as the Thrifty ice cream (which is very good, by the way). Those young, rich shoppers stick. They start going to Rite Aid stores more.Rite Aid starts winning the marginal dollar share in this important cohort. Long term revenue, margin, and profit trends improve. RAD stock bounces back. This Is a "Prove It" SituationThe aforementioned Amazon-inspired bull thesis on RAD stock sounds really good. But, it also lacks tangibility simply because it hasn't materialized yet.That's a problem for Rite Aid. If the tables were flipped, and this was Amazon stock we were talking about (you know, the stock that's up 150% since the start of 2017) then investors wouldn't need tangibility to believe the bull thesis. Amazon's track record is good enough to warrant belief before tangibility materializes.That isn't the case with Rite Aid. As opposed to being up 150% since early 2017, RAD stock is down 95%. Investors here need tangibility to believe the bull thesis. Without it, you won't get the sustainable bulk buying necessary to put RAD stock on a winning course.As such, until this catalyst appears on the income statement via improved revenue and profit trends, RAD stock likely won't reverse course. Bottom Line on Rite Aid StockRite Aid has unique breakout potential from today's depressed levels. But, that breakout potential also comes with a lot of risk. As such, before buying into the RAD stock turnaround, investors are probably best off waiting for confirmation of this turnaround through improving financial trends in the next earnings report.As of this writing, Luke Lango was long AMZN. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 8 Dividend Aristocrat Stocks to Buy Now No Matter What * 7 Stocks to Buy to Ride the Vegan Wave * 4 Safe Stocks to Buy Amid Trade War Turbulence The post Maybe Amazon Will Wake up Rite Aid Stock, but It's a Risky Bet appeared first on InvestorPlace.
If you were to tell me that Rite Aid (NYSE:RAD) is the most disappointing name in the markets today, you won't get much argument from my end. To paraphrase that Dos Equis guy, I don't always look at the RAD stock price. But when I do, it's usually down.Source: Shutterstock And this year is turning out to be no exception. Against January's opening volley, Rite Aid stock has lost more than half its value. Since early 2017, shares have largely charted an ugly bearish trend channel. There was a nine-or-so-month span -- between November 2017 through early August 2018 -- when shares ticked higher. Obviously, that respite from the volatility did not pan out.Technically, this is what worries prospective speculators regarding the RAD stock price. At any time, the fundamentals can disappoint the markets. When they invariably do, the resulting selloff is fast and furious.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThat said, the most recent earnings report for the first quarter of fiscal 2020 produced an anomaly. As usual, the underlying company stunk up the field. Against a consensus per-share profitability target of a loss of 8 cents, actual earnings per share came in 14 cents in the red. Moreover, Rite Aid also missed its revenue forecast of $5.38 billion. Instead, it delivered $5.37 billion.But following the Q1 disclosure, the RAD stock price surged 24%. Why? A fresh deal with Amazon (NASDAQ:AMZN) gave beleaguered stakeholders hope for a substantive turnaround. * 7 A-Rated Stocks Under $10 On the surface, I can see why investors were excited. Under this partnership, Amazon customers can go pick up their orders at participating Rite Aid stores. But with Rite Aid stock having lost all that enthusiasm, is it worth the risk? Amazon Deal Provides an Intriguing Case for RAD StockMy InvestorPlace colleague Will Ashworth takes a very cautious approach with Rite Aid stock. I don't blame him. Indeed, I'm sure that most people follow his thinking.To summarize, RAD stock is a boring investment: mostly, it sells medication for sick people, along with the occasional candy bar. The company has no business absorbing the kind of red ink that it did, including an operating loss that jumped nearly 80% year-over-year to $92.0 million.Regarding the Amazon deal, Ashworth believes it will help Rite Aid. However, because people have already spent their money on their Amazon order, a residual sale is unlikely, leading Ashworth to comment, "I just don't think it will benefit nearly as much as people imagine, and that's negative for RAD stock."Logically, I understand his point. Still, I think the Amazon deal is incredibly symbiotic for Rite Aid stock for one key reason: demographics.Most Rite Aid shoppers are 55 and older, and make less than $40,000 a year. On the other end of the spectrum, Amazon shoppers are young, tech savvy, and make serious bank. With the Amazon Counter program, Rite Aid will get foot traffice from a previously untouched demographic.And this demographic reality counters a point that Ashworth made: the typical Amazon customer will probably make that secondary or residual sale … depending on how Rite Aid displays its counter merchandise.Plus, let's consider the most obvious element here: Rite Aid will potentially see a wave of non-typical customers in their store locations. That gives management an opportunity to sell their brand to a younger and upwardly mobile audience. * 10 Generation Z Stocks to Buy Long Granted, this is a long shot. But I wouldn't give up on Rite Aid stock yet, not when it's getting interesting. Short-Term Trade Idea Is ViableIf the Amazon deal only brought retirees on a fixed income to Rite Aid, I'd wholeheartedly agree with Ashworth; these types of shoppers won't much benefit RAD stock.But in many ways, the Amazon shopper is the exact opposite of the Rite Aid customer. So, the bullish argument doesn't necessary revolve around the deal; instead, it's what management can do with this groundbreaking opportunity.Now I don't think it's a coincidence that Rite Aid stock bounced off support at the low $6 level. Sure, the enthusiasm over the Amazon Counter locations ultimately didn't work out. I believe many investors got cold feet.However, the markets are still giving management a chance here. That's why shares haven't fallen off a cliff. Therefore, if you're risk tolerant, a measured short-term bet on RAD stock isn't as crazy as you might think.As of this writing, Josh Enomoto did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Cyclical Stocks to Buy (or Sell) Now * 7 Biotech ETFs That Should Remain Healthy * 7 of the Hottest AI Stocks to Buy Now The post Take a Deeper Look at Rite Aid Stock and the Amazon Deal appeared first on InvestorPlace.
Many eyes will turn toward CVS Health (NYSE:CVS) stock as it reports its earnings on Wednesday, Aug. 7 before the bell. CVS stock price entered a long-term downtrend in 2015 that has wiped out more than half of its value. With CVS facing new competitive threats and having bought a health insurer, doubts linger about CVS stock.Source: Shutterstock However, given the valuation and dividend of CVS stock, investors have little to lose by buying CVS before its earnings. Expect Huge Revenue Growth, Lackluster Earnings GrowthFor CVS' Q2, analysts, on average, predict earnings of $1.69 per share. If the company meets the consensus estimates, its EPS will be unchanged versus the same quarter last year. However, analysts' average revenue estimate is $62.65 billion, 34% higher than the year-ago figure of $46.71 billion.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 8 of the Most Shorted Stocks in the Markets Right Now The takeover of insurance giant Aetna helped to boost CVS' revenues, though the company's profits aren't increasing much as it works to fully integrate the insurer into CVS Health. Also, CVS usually beats consensus earnings expectations, so CVS stock price could still be boosted by year-over-year profit growth. The Struggles Continue for CVSBut CVS stock does pose some risks. In a recent article, I called CVS stock a "highly-flawed equity" that investors should buy. The company's pharmacy business will likely face competition from the likes of Amazon (NASDAQ:AMZN).Moreover, CVS' purchase of Aetna drew the ire of both political parties. Also, for those who watched the recent Democratic presidential debates, the cost of drugs figured prominently. With the outcome of the 2020 presidential election far from certain, changes in the political environment could profoundly alter the outlook of CVS stock two years from now.That makes CVS stock price today cheap for a reason. It reflects the uncertainty created by the company's acquisition of Aetna. It also bakes in some issues with the balance sheet that did not escape the notice of InvestorPlace columnist Bret Kenwell. Seeing current liabilities exceed current assets makes investors uneasy.Also, the Aetna purchase caused CVS' long-term debt to jump. This figure stood at just over $22 billion at the end of 2017. As of the end of Q1, it stood at almost $67.9 billion. That is a significant burden for a company with about $59.7 billion in stockholders' equity. CVS Offers Future Growth at a Low MultipleHowever, some recent good news has been beneficial for CVS stock price and its peers such as Walgreens Boots (NASDAQ:WBA) and Rite Aid (NYSE:RAD). Specifically, the Trump administration scrapped its plan to reduce the reimbursements paid by Medicare to pharmacy benefit managers (PBMs), a significant source of revenue for CVS.Moreover, from a financial standpoint, it would take a cataclysmic event to take CVS stock price significantly lower. Its forward price-earnings (PE) ratio now stands at just 7.8.The low PE ratio and a dividend yield that stands at almost 3.6% should draw income-oriented investors. A resumption of CVS' streak of annual dividend increases, would be another positive catalyst for CVS stock. The Bottom Line on CVS StockCVS stock has struggled in recent years. However, with the low PE ratio and the stock price hitting a plateau in the last few months, investors may have little to lose by buying CVS at these levels.Demographic trends bode favorably for CVS stock, as the U.S. population is rapidly aging. Moreover, CVS stock price is quite cheapFurthermore, CVS' price action in recent months indicates CVS stock price may be poised to climb. Since early March, CVS has stayed in the $50s per share range. CVS stock price today is less than 10% above ts 52-week low of $51.72.If a strong positive catalyst emerges , CVS stock may rise again. Perhaps the second-quarter earnings report will be that catalyst.As of this writing, Will Healy did not hold a position in any of the aforementioned stocks. You can follow Will on Twitter at @HealyWriting. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 8 of the Most Shorted Stocks in the Markets Right Now * 7 Charts That Should Concern Marijuana Stock Investors * 8 Monthly Dividend Stocks to Buy for Consistent Income The post CVS Stock Is Worth Buying Ahead of Its Earnings appeared first on InvestorPlace.
The ratings of Credit Tenant Lease (CTL) deals are primarily based on the senior unsecured debt rating (or the corporate family rating) of the tenants leasing the real estate collateral supporting the bonds. 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 (RAD) announced today the launch of Rite Aid Photo, a new one-stop shop photo website designed to provide customers with a seamless shopping experience for all of their photographic needs. The site will enable customers to create photo books, calendars, stationary, greeting cards, canvases and wall décor and of course photo prints and enlargements. “At Rite Aid, meeting the needs of our customers is critical to our strategy.