|Bid||0.00 x 800|
|Ask||0.00 x 2200|
|Day's Range||9.50 - 9.87|
|52 Week Range||5.04 - 27.20|
|Beta (3Y Monthly)||1.68|
|PE Ratio (TTM)||N/A|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||N/A|
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.
Amazon.com Inc. said Wednesday that it has expanded its Counter third-party package pickup service to thousands of new stores. Counter was launched in June at more than 100 Rite Aid Corp. stores. Now it has been added to GNC , Health Mart and Stage Stores . Counter allows customers using same-day, next-day, two-day and standard shipping to go to a brick-and-mortar retailer to retrieve an order. Amazon stock is up 17.3% for the year to date while the S&P 500 index is up nearly 20%.
The rating for this CTL lease transaction Class A-2 was downgraded primarily due to the downgrade of Rite Aid Corporation senior unsecured notes to Caa3 from Caa2. On October 18, 2019 Rite Aid Corporation guaranteed senior unsecured notes were downgraded to Caa2 from Caa1 and senior unsecured notes were downgraded to Caa3 from Caa2. 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.
Moody's Investors Service ("Moody's") today stated that if the tender offer announced by Rite Aid Corporation on 15 October 2019 proceeds as outlined, it will constitute a distressed exchange, which is an event of default under Moody's definition of default. The Company announced that it recently completed a privately negotiated purchase from a noteholder and its affiliated funds of $84.1 million aggregate principal amount of its senior unsecured notes maturing 2027 and 2028 at 61% of par. The company also announced that it has commenced cash tender offers to purchase up to $100 million aggregate principal amount of its senior unsecured notes due 2027 and 2028.
Sanofi announced Friday a recall of over-the-counter heartburn medication Zantac in the U.S. and Canada, because of possible contamination with N-nitrosodimethylamine (NDMA), which is believed to cause cancer. The U.S.-listed stock fell 0.9% in morning trading. Sanofi said it was working with health authorities to determine the level and extent of the recall. The recall comes less nearly three weeks after CVS Health Corp. , Walgreens Boots Alliance Inc. and Rite Aid Corp. said they were pulling Zantac from their drugstores' shelves following a Food and Drug Administration warning that the the product could contain low levels of NDMA. "Evaluations are ongoing on both drug substance (active ingredient) and finished drug product," Sanofi said Friday in a statement. "Due to inconsistencies in preliminary test results of the active ingredient used in the U.S. and Canadian products, Sanofi has made the decision to conduct the voluntary recall in the U.S. and Canada as the investigation continues." Sanofi's shares have gained 6.2% year to date, while the SPDR S&P Pharmaceuticals ETF has gained 2.0% and the S&P 500 has climbed 19.5%
Supermarket giant Kroger (KR) became the latest retailer to discontinue the sale of electronic cigarettes amid regulatory scrutiny.
This collaboration is in line with Walgreens' (WBA) commitment toward providing affordable and convenient healthcare facilities to residents of North Carolina.
Shares of struggling pharmacy retailer Rite Aid (NYSE:RAD) went on a roller coaster ride of epic proportions in September. RAD stock price entered September at $6.50. A few days into September, RAD stock was trading just shy of $10. By the end of the month, RAD stock price had come crashing back down to $6.50.Source: Michael Gordon / Shutterstock.com In other words, in a matter of one month, RAD stock both rallied more than 50%, and dropped more than 30%.In the big picture, the wild roller coaster ride that RAD stock price went on in September is much ado about nothing. The company's fundamentals didn't change at all in September. Instead, its second-quarter numbers announced in September confirmed that Rite Aid remains a struggling pharmacy retailer that can potentially stabilize its sales and margins over the next few years. But at the same time, it's uncertain whether Rite Aid can generate high enough profits to support a price tag for RAD stock north of $5.InvestorPlace - Stock Market News, Stock Advice & Trading TipsConsequently, I think investors would be wise to ignore the recent roller coaster ride of Rite Aid stock. Instead, they should focus on its fundamentals, which continue to support the bear thesis on RAD stock. Forget the Roller Coaster RideInvestors would be wise to ignore both the 50% rally and the 30% plunge by Rite Aid stock in September. Instead, they should just think of RAD stock as a name that delivered a flattish return last month.The roller coaster ride is much ado about nothing. Rite Aid's fundamentals haven't changed at all. Instead, there was a big shift in the markets from momentum stocks to value stocks, as investors reassessed the valuations of all stocks. Rite Aid stock got caught up in that shift, and because the shares were really beaten up, RAD stock subsequently skyrocketed. * Are These 10 High-Yielding S&P Dividend Stocks Traps or Treasures? But, just as quickly as the momentum-to-value shift came about, it went away. Now momentum stocks are back to outperforming value stocks. As the value trade has unwound, RAD stock has given up all of its gains.So the roller coaster ride of Rite Aid stock in September was driven by macro factors largely irrelevant to the company's fundamentals. Therefore, the recent volatility of RAD stock price should be ignored. Focus on the FundamentalsInvestors would be equally wise to turn their focus to the fundamentals of RAD stock. Unfortunately, the company's second-quarter numbers reported in September confirm that those fundamentals remain weak.Here's the big picture. Rite Aid is a niche, specialty pharmacy retailer that has largely been squeezed out of the retail landscape by the competition. Among its competitors are e-commerce marketplaces like Amazon (NASDAQ:AMZN), which recently entered the market, and retail titans like Walmart (NYSE:WMT) and Target (NYSE:TGT) which have expanded their retail drug operations. Rite Aid's traffic, revenues, margins, and profits have consequently slipped over the past several years.They continue to slip today, and the trend remains unfavorable. Its revenues dropped 1% year-over-year in Q2, the worst top-line decline in over a year for Rite Aid. Its EBITDA margins fell 0.24 percentage points year-over-year, in-line with its average quarterly margin drop of the last two years The company ran up a huge loss in the quarter. Importantly, on a trailing 12-month basis, its revenues and margins are dropping at a fairly consistent and bearish rate.Rite Aid's full-year guidance calls for its revenues and margins to stabilize into the end of the year. That could happen, as its partnership with Amazon could provide a nice traffic and sales tailwind for the company. But, even if that does happen, its fundamentals will still broadly remain depressed, characterized by flattish sales growth, anemic margins, and tiny profits. Rite Aid Stock Isn't Worth $7According to my numbers, RAD stock isn't worth $7 today. Instead, it's worth less than $5.Rite Aid's revenues aren't going much higher anytime soon. In a worst-case scenario, its revenues will continue to drop at a steady 1%-2% rate per year. In a best -case scenario, Rite Aid will leverage its new Amazon partnership to turn its steady revenue declines into slight growth, in the ballpark of 0%-1% annual increases.Assuming the best-case scenario, renewed, consistent revenue growth should be accompanied by slight margin expansion as management continues to focus on cost reductions.That all sounds good. But the problem is that this company is paying $200 million or more every year to service its huge debt load, and its operating profits may never get big enough to fully fund the interest bill and produce a sizable profit. At best, I think Rite Aid's EPS can reach 50 cents by fiscal 2025.Based on a forward price-earnings multiple of 16, which is average for the market, and a 10% discount rate, that equates to a 2019 price target for RAD stock of below $5. The Bottom Line on RAD StockRite Aid stock went on a roller coaster ride in September. Forget about that roller coaster ride. It had nothing to do with the company's fundamentals. Its fundamentals remain depressed and continue to indicate that RAD stock can drop further.Because of that, I think the best thing to do with Rite Aid is remain on the sidelines.As of this writing, Luke Lango was long AMZN. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Best ETFs for 2019: The Race Is a Little More Gnarly Now * 7 Next-Generation Healthcare Stocks to Buy * Are These 10 High-Yielding S&P Dividend Stocks Traps or Treasures? The post The Roller Coaster Ride of Rite Aid Stock Is Much Ado About Nothing appeared first on InvestorPlace.
Rite Aid Corp. announced the appointment of Jim Peters as chief operating officer on Wednesday, in charge of the company's pharmacy business and clinical strategy. He succeeds Bryan Everett, who, Rite Aid says, is leaving to pursue other opportunities. Peters was most recently the chief executive at Skyward Health. Rite Aid stock has lost more than 70% over the last year while the S&P 500 index is down 1.3% for the period.
Three of the nation’s largest pharmacies will stop selling the heartburn medication Zantac and similar generic products following a warning by the Food and Drug Administration that the drug may contain low levels of a potentially cancer-causing substance.
Rising health costs have become a burden for many Americans, but many people still may be unaware of one benefit they get, the health savings account. Personal finance expert Jean Chatzky joins Yahoo Finance to discuss the benefits of HSAs.