54.72 -0.12 (-0.21%)
After hours: 5:33PM EDT
|Bid||54.87 x 900|
|Ask||54.98 x 900|
|Day's Range||54.22 - 55.34|
|52 Week Range||49.03 - 86.31|
|Beta (3Y Monthly)||0.82|
|PE Ratio (TTM)||10.73|
|Forward Dividend & Yield||1.83 (3.31%)|
|1y Target Est||N/A|
SmileDirectClub made its trading debut today. The teeth-straightening company's stock nose-diving after opening at $20.55 a share, below its IPO price of $23 per share. Yahoo Finance's Zack Guzman & Kristin Meyers, along with Webull CEO Anthony Denier discuss.
SmileDirectClub, the first direct to consumer med-tech platform, made its public debut on the NASDAQ today, opening at $20.55 per share. SmileDirect CFO Kyle Wailes and Co-founder Alex Fenkell join Yahoo Finance's Brian Sozzi to discuss the company's IPO.
Apple's new products, Goldman's reservations about the stock, iPhone security issues and its trillion-dollar valuation are the highlights of this roundup.
There's an intriguing case for Rite Aid (NYSE:RAD) stock at the moment. For a long time, bulls have been awaiting a turnaround that can boost Rite Aid stock, and a new CEO has finally come on board. Meanwhile, with the RAD stock price down over 95% from its early 2017 highs, the stock's valuation seems like it should be reasonable.Source: J. Michael Jones / Shutterstock.com And there is an intriguing, albeit high-risk, positive case for RAD stock at these levels.The current RAD stock price of $7.50 indicates a market cap of just under $400 million. The company's net debt (adjusted for the pending sale of two distribution centers) is over $3.2 billion. If the company's enterprise value of roughly $3.6 billion rises by just 10%, Rite Aid stock will almost double.InvestorPlace - Stock Market News, Stock Advice & Trading TipsBut I've been a longtime bear on RAD stock for reasons that go to the heart of the current bull case. The easy bull argument is that former CEO John Standley ran Rite Aid into the ground. Certainly, the revised deal with Walgreens (NASDAQ:WBA) was a massive disappointment. But the pressures on Rite Aid are the same pressures facing the rest of the industry.And so it's a bit too simplistic to believe that a new CEO can simply "fix" Rite Aid all that quickly amid the pressures on the sector. Meanwhile, the company's debt creates a major risk to Rite Aid stock going forward. Much like General Electric (NYSE:GE), a popular turnaround pick, new leadership can help RAD stock. But there are significant obstacles that add risk to the company's outlook. * 7 Momentum Stocks to Buy On the Dip Moreover, there are other ways, besides buying RAD stock, to bet on the turnaround of the sector. At the very least, those who are bullish on RAD stock should consider those options. Not Just Rite Aid's ProblemIt's important to put the performance of Rite Aid stock in the context of the pharmacy space. The entire industry is struggling right now. Fred's (NASDAQ:FRED), which was going to buy Rite Aid stores as part of the original Walgreens takeover, just filed for bankruptcy. Walgreens stock touched a five-year low last month. CVS Health (NYSE:CVS) bounced off its lowest levels in six years this spring.The RAD stock price has fallen further than other pharmacy equities. But that's because Rite Aid has more debt than its peers.In fact, since the beginning of 2018, Rite Aid stock has fallen 81%. But its enterprise value (its market cap plus the face value of its debt) is down only 22%. Over the same period, Walgreens' EV has dropped almost 20%, but its shares are down only 24%.It's clear that the entire sector is struggling with pressures. Reimbursement rates from insurance companies are falling. And sales of OTC products, perhaps due to competition from the likes of Amazon.com (NASDAQ:AMZN), remain weak.Those pressures, combined with higher fixed costs, have dragged down the sector's profits. Indeed, the operating profit of Walgreens' U.S. pharmacy business fell in the third quarter. Should Investors Buy CVS or Walgreens Instead of Rite Aid Stock?For RAD stock to finally rally, those industry pressures have to ease. But if that happens, investors can benefit by buying CVS or Walgreens instead. In terms of EV/EBITDA, Rite Aid stock is only modestly cheaper than CVS and Walgreens. As a result, investors would likely be better off buying one of the larger companies, which are big enough to muddle through if the environment doesn't improve.In an uber-bullish scenario, Rite Aid stock will no doubt outperform its peers (as it did after the financial crisis). That's because not many shares of RAD stock are available, so Rite Aid stock price can jump tremendously if its EBITDA increases and its free cash flow and net income move into the black from their current stagnation.But if the sector remains stable, Rite Aid stock will likely continue to underperform. And with $3 billion in debt due in 2023, and the company's net debt over six times its annual EBITDA, RAD may not be able to refinance.Rite Aid stock will outperform in a bullish scenario if the industry's pressures finally ease. In any other environment, Walgreens or CVS will likely do better. So investors who want to bet on the industry have to at least consider buying the shares of those larger operators instead. What Level Does the RAD Stock Price Need to Reach to Outperform Rite Aid's Bonds?There's another option to consider: Rite Aid's bonds. Like the RAD stock price, the prices of Rite Aid's bonds are at multi-year lows.The 6.125% bonds that mature in April 2023 have a current price of 79 and an annual yield to maturity of 13.7%. Longer-dated issues are potentially more attractive. The 7.7% February 2027 bonds are priced at 50, with a YTM of 21.2%.The 6.875% bonds that mature in 2028 have a similar price, with a yield to maturity of 18%.The bonds are less risky than Rite Aid stock, since secured bonds may have some value even if RAD goes bankrupt.And it's important to realize that RAD stock needs to climb substantially just to outperform those bonds. To top the April 2023 bonds, RAD stock price would need to reach $12. To beat the 2027 bonds, the RAD stock price would need to soar over 320%.The bond prices have an impact on Rite Aid stock because high demand for the bonds may cause demand for the equity to be low. And it's worth noting for near-term traders that the bond prices haven't moved lately, even as the RAD stock price has bounced 50% off its August lows. Consequently, the bonds are more attractive than they were a month ago.In the most bullish scenario, Rite Aid stock will outperform Rite Aid's debt. It will also outperform CVS, and Walgreens, and probably over 90% of the stocks in the market. The sheer size of the company's debt is why RAD stock has fallen so far - and why RAD stock can soar if it's finally able to lower its debt.But there's a long path to that bullish scenario, and some outside help is needed. And in anything less than a blue-sky outcome, investors likely will do better if they buy alternatives to Rite Aid stock.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Momentum Stocks to Buy On the Dip * 7 Dow Titans Breaking Higher * 5 Growth Stocks to Sell as Rates Move Higher The post Why Rite Aid Stock Will Probably Underperform Alternatives appeared first on InvestorPlace.
KHC and WBA stocks have cost investors dearly. Warren Buffett’s Berkshire Hathaway has suffered for being Kraft Heinz's biggest shareholder.
Stocks meandered for much of Friday despite some encouraging consumer data, which may not be surprising given that this week was mostly impressive for riskier assets.Source: Shutterstock In a report out earlier today, the University of Michigan's initial reading of September consumer sentiment jumped to 92 from the three-year low of 89.8 last month. Additionally, another report out this morning showed retail sales in August rose 0.4% and that the July reading was revised higher."The resilient reading shows American consumers may be poised to shake off trade war and global slowdown to support the record-long economic expansion as the labor market holds up," according to Bloomberg.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Discount Retail Stocks to Buy for a Recession In recent months, I've noted many times in this space the importance of the U.S. consumer and that many of the recession calls were likely premature because the market has not absorbed material deterioration in consumer data to date. I'll stick by that thesis because the preliminary September sentiment reading seems to indicate the August result was a bump in the road, not the start of a negative trend.Today, the Nasda Composite finished lower by 0.22% while the S&P 500 dropped 0.08%. The Dow Jones Industrial Average was up 0.13%, extending its winning streak to eight days. In late trading, 16 of the Dow's 30 components were pointed higher. Pleasant Surprise for Dow Component UNHIt was interesting if not surprising to see UnitedHealth (NYSE:UNH), a frequent guest of this space, rank as one of the best-performing names in the Dow today. I say surprising because there was a democratic debate last night, an event that typically weighs on stocks like UNH. I missed the goings on, but I'll assume whatever Medicare For All talk that took place was not strident enough to derail UNH shares today.Staying with the healthcare theme, don't read too much into today's bounce in pharmacy name Walgreens Boots Alliance (NASDAQ:WBA), a consumer staples name with sizable drug price exposure, because two of the Dow's three pharmaceuticals names finished lower today. This is another hot-button issue investors need to be aware of going forward."An ambitious draft plan from House Speaker Nancy Pelosi (D-Calif.) to allow government price negotiation on a swath of expensive drugs has shifted Washington's contentious policy debate leftward at a critical point for Democratic negotiations with Senate Republicans and the White House," reports Modern Healthcare. BA Flying HigherBoeing (NYSE:BA) continued trending higher, gaining 1.06% today as the company makes progress toward getting the 737 MAX jet airborne again. A deeper analysis of that issue and other important points on Boeing stock is available here.There seems to be some momentum for Boeing getting the jet back in the skies before the end of this year, Wall Street's desired time horizon, but by the company's admission, it doesn't control the timeline."The timeline is in the hands of divided regulators around the world who must approve Boeing's proposed software fix for 737 MAX flight controls and new training materials. European regulators plan their own test flights on the changes," reports Reuters. Fighting BackWith a decline of about 2%, Apple (NASDAQ:AAPL) was the worst-performing stock in the Dow Jones Industrial Average. That's not something that happens very often, so when it does, it's fair to surmise there's a reason for the Apple weakness, albeit temporary.Goldman Sachs analyst Rod Hall cut his price target on Apple shares today to $165 from $187, saying the company's recently unveiled $4.99 per month price on the Apple + streaming TV service is aggressive and could hamper the company's earnings.Apple rebutted the analyst, saying it doesn't expect Apple + to materially impact results. Bottom Line on Dow JonesThere are just a couple of weeks left in the the third quarter, meaning another earnings season is fast-approaching. I'll leave you with a glance at some of the sectors analysts are bullish and tepid on this quarter."At the sector level, analysts are most optimistic on the Energy (66%) sector, as this sector has the highest percentage of Buy ratings. It is interesting to note that the Energy sector is projected to report the largest earnings decline of all 11 sectors in CY 2019 (-20.9%) and the largest earnings growth of all 11 sectors in CY 2020 (30.2%)," said FactSet.The research firm notes analysts are not enthusiastic about consumer staples as that sector has the lowest percentage of "buy" ratings and the highest percentage of "sell" calls.Todd Shriber does not own any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Big IPO Stocks From 2019 to Watch * 7 Discount Retail Stocks to Buy for a Recession * 7 Stocks to Buy Benefiting From Millennial Money The post Dow Jones Today: Lacking Sizzle appeared first on InvestorPlace.
Walgreens' (WBA) Retail Pharmacy USA division is witnessing comparable prescription growth and also gaining traction from a solid retail prescription market.
Leading the Apple (NASDAQ:AAPL) rumor mill today is news of a new App Store. Today, we'll look at that and other Apple Rumors for Thursday.Source: Anna Hoychuk / Shutterstock.com App Store: Apple is now asking developers to submit their apps for the Watch App Store, reports MacRumors. This means that developers will now be able to create Watch apps that don't require a companion iOS app. This is in preparation for the launch of a new App Store just for the smartwatch. Owners of Series 3 or Series 4 devices will be able to make use of this new App Store starting next Thursday. Series 1 and Series 2 owners will get support for the App Store later this year.OLED Lawsuit: Apple is facing a lawsuit from Irish company Solas OLED, AppleInsider notes. Solas OLED claims that AAPL is violating several of its lawsuits in connection to OLED screens. However, the tech company doesn't make its own displays. Instead, it gets them from other companies, such as Samsung or LG. It's also worth noting that Solas OLED doesn't make displays either. It's just appears to be a company sitting on patents.InvestorPlace - Stock Market News, Stock Advice & Trading TipsCashback: Apple Card holders are going to start getting 3% cashback when shopping at Walgreens. Walgreens Boots Alliance (NASDAQ:WBA) says that customers will start earnings 3% cashback when shopping with the payment card at its Walgreens or Duane Reade locations. It will also work for purchases made online or through the Walgreens app. This offer will go live on Friday.Subscribe to Apple Rumors As of this writing, William White did not hold a position in any of the aforementioned securities.The post Thursday Apple Rumors: Apple Watch App Store Submissions Begin appeared first on InvestorPlace.
Walgreens said Apple Card users will get 3 percent cash back on purchases, and Walgreens will now sell more Apple accessories.
Walgreens Boots Alliance Inc. said Thursday customers who use Apple Inc.'s Apple Card with Apple Pay on eligible purchases will receive 3% cash back. Apple's stock rose 0.6% in premarket trading and Walgreens shares were still inactive. The eligible purchases will include prescription bought in Walgreens and Duane Reade stores and those made on the Walgreens app and its website. Walgreens said it will also expand the number of stores carrying Apple accessories, such as lightning cables, EarPods and iPhone cases to 2,600 stores nationwide. "We know our customers love Apple Pay and they're looking for convenient ways to shop and pay for their purchases at Walgreens," said Walgreens' Chief Merchandising Officer Joe Hartsig. Year to date, Walgreens's stock has lost 15.0% and Apple shares have run up 41.8%, while the Dow Jones Industrial Average has gained 16.3%.
It's a rare moment when a losing call on volatile Rite Aid (NYSE:RAD) makes you a 28% profit. Let me explain: Back on Aug.7, I made a ridiculous statement that buying RAD stock for a short-term bet wasn't as crazy as initial looks might suggest. However, the markets made my bullishness look incredibly foolish very quickly.Source: Ken Wolter / Shutterstock.com Near mid-August, the embattled pharmacy retailer announced an executive shakeup. Former CEO John Standley stepped down from the top post. In his place came Heyward Donigan, who previously served as CEO for Sapphire Digital. During her time leading the company, she led the organization to record growth and consumer engagement.Under ordinary circumstances, Donigan would be a welcome lift to Rite Aid stock. After all, the once-powerful pharmacy retailer has massive competition. We're not just talking about peers, such as CVS Health (NYSE:CVS) or Walgreens Boots Alliance (NASDAQ:WBA). Instead, the RAD stock price is under pressure from disruptive names like Amazon (NASDAQ:AMZN).InvestorPlace - Stock Market News, Stock Advice & Trading TipsIn that context, perhaps the fallout in shares wasn't surprising. When Rite Aid announced Donigan as CEO, the RAD stock price was hovering just above $7. Just a few days later, the equity hit a multi-year low of $5.27. With that, my speculative thesis blew up in my face. * 10 Stocks to Sell in Market-Cursed September But before the rounds of "I told you so's" could flood my inbox, Rite Aid stock started to turn around. From Aug. 27, the equity veritably skyrocketed, gaining nearly 75% to the close of Sept. 10. That made me look less foolish, for which I'm grateful.But what about RAD stock? Is there still an opportunity here after such a mercurial rise? Millennials Hold the Key to the RAD Stock PriceLike most market investments, the answer depends on millennials. As the largest generation in the workforce, this demographic essentially enjoys the China narrative: they're emerging as a true political and economic force, and there are a lot of them.Better yet, millennials bring many potential positives for Rite Aid stock and the broader pharmacy business. For one thing, their sheer numbers bring robust dollars into the mix. More significantly, 45% of millennials prefer using over-the-counter drugs versus depending on a doctor for a prescription.This is one stat for which Donigan and her team must focus on. She has a clear opportunity to convert visitors to sales.And they will come. Based on the Amazon Counter deal that I referenced in last month's story, this will incentivize a new breed of consumers to visit Rite Aid stores. I wrote that "Amazon shoppers are young, tech savvy, and make serious bank." This is exactly the type of demo that you need to get RAD stock out of its funk.Unfortunately, some bad news exists for Rite Aid stock as well. According to MarketingCharts.com, millennials are the most price-sensitive generation for consumer-packaged goods. For instance, millennials more so than any other generation are likely to buy over-the-counter meds on sale as opposed to their preferred brands.Obviously, the easy answer is to pump out some discounts to attract and secure millennial shoppers. But nothing associated with RAD stock is easy. Primarily, the company does not have the margins to play the discount game for a prolonged period.Therefore, Rite Aid stock is a race: can management attract and retain enough millennial shoppers to justify an initial cut to margins? This is not a believable route for many investors, and that's why they dumped shares. Right Now, It's About Tactics Over StrategyGiven the recent and dramatic changes in the RAD stock price, we have several ways to approach shares. First, if you made that 75% profit that I referenced earlier, congratulations! Now, it's time to dump out.Even if you made the smaller 28% profit, it's time to sell. Certainly, you don't want to get greedy with a volatile investment like Rite Aid stock.On the other hand, if you're approaching shares now, I'd wait. For starters, it's unlikely that RAD stock will continue to make double-digit jumps. Second, some stats, like the excessive institutional ownership worries me in this present context. If insiders panic, RAD will plummet faster than you can hit the "sell" button.Third, Rite Aid is scheduled to release their second quarter of fiscal 2020 earnings report near September end. I don't want to have excessive exposure here, especially since RAD stock can go anywhere following this report.But after that dust clears, the pharmacy giant might get interesting again. As I said, it really depends on whether Donigan can convert millennials. It's a herculean task, to be sure. But the opportunity is there, which represents the longer-term speculative case for Rite Aid stock.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 Stocks to Sell in Market-Cursed September * 7 of the Worst IPO Stocks in 2019 * 7 Best Stocks That Crushed It This Earnings Season The post For Rite Aid Stock, Everything Depends on Millennials appeared first on InvestorPlace.
DOW UPDATE The Dow Jones Industrial Average is climbing Wednesday morning with shares of Apple Inc. and Walgreens Boots delivering strong returns for the index. The Dow (DJIA) was most recently trading 70 points higher (0.
The Zacks Analyst Blog Highlights: Caterpillar, General Motors, Citigroup, Northrop Grumman and Walgreens Boots
Dubbed Social CBD, the company takes pride in having launched not only online but also in 10,000 retail locations nationwide, from Walgreens (NASDAQ: WBA) and CVS Health Corp (NYSE: CVS) to Vitamin Shoppe Inc (NYSE: VSI). Management told Benzinga it expects to be at 20,000 retail locations by the end of 2019. “We are excited to launch Social CBD and join in people’s wellness journey nationwide," Social CBD’s President, Angelo Lombardi, told Benzinga.
Stocks struggled to find direction as traders took profits in some names that bounced higher last week with growth fare. Technology names got pinched today, but Monday's performances by the broader benchmarks were not too bad, nor where they impressive.Source: rafapress / Shutterstock.com Monday was a lethargic day, reminiscent of many during the summer months, but the S&P 500 entered the day just 1.80% below its all-time high and growth sectors, such as consumer discretionary and technology, were about 2% removed from records, so it wasn't surprising to see modest dips today.When all was said and done, the Nasdaq Composite was lower by 0.19% while the S&P 500 settled down by just 0.01%. The Dow Jones Industrial Average was the standout of the day, gaining 0.14%. In late trading, 17, or just over half the Dow's 30 members, were trading higher.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Industrial Stocks to Buy for a Strong U.S. Economy This week, barring any unexpected Twitter (NYSE:TWTR) activity from President Donald Trump, should be relatively quiet on the domestic headline front, but there are global considerations. The Organization of Petroleum Exporting Countries (OPEC) publishes its monthly demand forecasts on Wednesday, news that could move Dow components Exxon Mobil (NYSE:XOM) and Chevron (NYSE:CVX), two names that have recently steadied.On Thursday, the European Central Bank (ECB) is widely expected to reveal a rate cut, a move that could spark moribund European stocks and provide a lift to other riskier assets. Dow Dogs Have Their Day AgainWith ebullience for the Dow last week, some of the blue chip index's laggard names notched some nice gains. That group included trade-sensitive Caterpillar (NYSE:CAT). Importantly, there was follow-through as the industrial machinery maker added 3.74%, making it one of the best-performing Dow members to start the week.Slack global manufacturing data is a legitimate concern for shares of Caterpillar, but some analysts argue that investors have gotten too gloomy on the stock and that it may be pricing in more downside than is realistic.Caterpillar "could face another 1 to 2 quarters of negative [earnings per share] revisions due to dealer destocking in construction and weakness in upstream oil and gas," said Bank of America Merrill Lynch analyst Ross Gilardi in a note out today. "We advise investors to look through it because global [industrial indexes] are already below 50, central banks are stimulating, and the U.S. service economy (i.e. the consumer) is still humming."At the end of the resurgent dog spectrum is defensive name Walgreen Boost Alliance (NASDAQ:WBA), which has easily been one of the Dow's worst-performing components this year. Today, it was one of the best Dow stocks, posting a jaw-dropping (by its standards) gain of 5.76% on seemingly no news other than a recent decision by the company to tell shoppers to not enter its stores with firearms.There was some chatter out today that the recent bankruptcy of smaller rival Fred's could be beneficial to Walgreens, but a gain of this magnitude today seems to overshoot that news. Tech CheckTech was roughed up a bit today, but one day of weakness does not diminish the case for the largest sector in the S&P 500. Microsoft (NASDAQ:MSFT) was one of the tech names trading lower today. Over the weekend, Evercore ISI raised its price target on the stocks to $160 from $150, sparking some unusual (and bullish) option activity in the name today.Apple (NASDAQ:AAPL) traded modestly higher ahead of its Tuesday product reveal, which is expected to include some iPhone enhancements, though not of the stock moving variety. Yes, iPhone 11 will be impactful for Apple stock at some point, but for those watching tomorrow's event, the real near-term catalyst could be updates on Apple + streaming and other entertainment-related efforts. Dow Jones Bottom LineAs I noted above, this week should be light on headline risk, emphasis on "should be." Ebbing uncertainty could set the stage for more gains for stocks, albeit in incremental fashion, but there are other benefits to removing the overhang of doubt from investors' minds."Eventually, erratic policy and heightened uncertainty undermine confidence in a way that affects the real economy," notes BlackRock. "This could happen in a number of ways: a safe-haven bid that drives up the dollar and credit spreads and/or a sharp decline in business confidence that begins to impact spending and hiring plans. Should either start to occur, the risk is no longer just investor mood swings but a more pernicious slowdown and market correction. In the absence of those developments, while easy money cannot eliminate uncertainty it can mitigate the effects."Todd Shriber does not own any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 3 Artificial Intelligence Stocks to Buy * 7 Industrial Stocks to Buy for a Strong U.S. Economy * 3 Beaten-Down Bank Stocks to Buy and Hold for the Long Term The post Dow Jones Today: Looking for Direction appeared first on InvestorPlace.
Struggling pharmacy retailer Rite Aid (NYSE:RAD) has shown surprising signs of life recently, as RAD stock has rallied an impressive 40% over the past seven trading days. That's a big rally in a short amount of time. Indeed, it's the biggest seven-day rally RAD stock has staged in the past five years.Source: Ken Wolter / Shutterstock.com Does this recent strength imply that the worst of the secular decline in Rite Aid is over? Is RAD stock finally ready to rebound?I don't think so. It's worth contextualizing this rally. Sure, the stock is coming off its best seven-day stretch in over five years. But, the Rite Aid stock price today is simply where it was a month ago.InvestorPlace - Stock Market News, Stock Advice & Trading TipsIn other words, this big rally happened on the heels of a big selloff, and in the big picture, it doesn't look all that significant. It also doesn't help that there isn't much fundamental or optical support for this rally. The valuation remains fairly unattractive without fundamental upside drivers. As such, I think the big seven-day rally in Rite Aid stock is more likely to fizzle out than to persist.To be sure, at some point, Rite Aid stock could become a buy with multi-bagger potential. But at the current moment, that bull thesis lacks clarity. So long as it continues to lack clarity, I think the safest place to hangout here is on the sidelines. Rite Aid Has Secular ChallengesWhen it comes to Rite Aid, I think what you have is the pharmacy version of GameStop (NYSE:GME) or J.C. Penney (NYSE:JCP). That is, just as GameStop and J.C. Penney failed to adapt to digital consumption trends and have subsequently lost relevance in the video game and mall retail worlds, Rite Aid has similarly failed to adapt to digital consumption trends and has subsequently lost relevance in the pharmacy world.The story is pretty simple. E-commerce happened. When e-commerce happened, everything changed. Consumers shifted from physical to digital shopping. Some retailers changed with the times -- in the pharmacy world, see Walgreens (NASDAQ:WBA) and CVS (NYSE:CVS) -- and have since thrived as omni-channel retailers. Both Walgreens and CVS have seen their pharmacy market shares grow from 2010 to 2018. * 7 Stocks to Buy In a Flat Market Other retailers didn't adapt. See Rite Aid, who didn't refresh stores to be tech-savvy or build out a robust e-commerce business. Not surprisingly, Rite Aid's pharmacy market share has dropped from 6.2% in 2010, to 2.6% in 2018, while it has gone from a top three pharmacy retailer in 2010, to being nudged out of the top five by the likes of Walmart (NYSE:WMT) and Kroger (NYSE:KR).The unfortunate reality here is that there isn't much visibility to Rite Aid gaining relevance anytime soon. The balance sheet is cash-strapped and debt-heavy, and cash flows aren't consistently profitable, so the company is operating with two hands tied behind its back for the foreseeable future -- meaning that store refreshes and e-commerce expansion aren't coming soon.In other words, Rite Aid has secular challenges that aren't going away any time soon. Until they do, it's tough to see Rite Aid stock rallying in a meaningful way from here, especially considering the stock trades at a not-that-cheap 7-times forward EBITDA multiple. Rite Aid Stock Could Turnaround … But Not YetAs I've argued before, Rite Aid stock could turnaround in the event that its distribution partnership with Amazon (NASDAQ:AMZN) introduces Rite Aid to a new and valuable shopper demographic.The thesis here is simple. Rite Aid shoppers skew old and poor. Amazon shoppers skew young and rich. Amazon's new partnership with Rite Aid will inevitably bring some Amazon shoppers through Rite Aid's doors. Most of those shoppers probably haven't been inside a Rite Aid store in ages, if ever.Most will probably look at the outdated stores, be uninterested, pick up their Amazon.com order, and promptly leave. Some may actually like what they see when go into Rite Aid, meaning some of these new, young and rich shoppers may actually start shopping at Rite Aid stores somewhat regularly.That will provide a meaningful lift for Rite Aid's sales, and this lift should last for several years.All in all, the Amazon partnership gives Rite Aid a unique opportunity to win over a demographic that has long forgotten about Rite Aid. If the company appropriately capitalizes on this opportunity, RAD stock could turn into a multi-bagger from here.But, we don't know if that will happen. Until the data suggests that this is indeed happening, the turnaround thesis in RAD stock will lack conviction and clarity. Bottom Line on RAD StockAt the current moment, there are two ways to look at the price action in RAD stock. One, Rite Aid stock is coming off its best seven-day stretch in over five years, and is ready to turnaround. Two, Rite Aid stock is exactly where it was a month ago, and is stuck in a secular downtrend.I think the latter perspective holds more credibility and has more support. As such, for the foreseeable future, I think it is best to avoid RAD stock.As of this writing, Luke Lango did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 3 Artificial Intelligence Stocks to Buy * 7 Industrial Stocks to Buy for a Strong U.S. Economy * 3 Beaten-Down Bank Stocks to Buy and Hold for the Long Term The post It's Still Too Risky to Bet on Rite Aid Stock appeared first on InvestorPlace.
DOW UPDATE The Dow Jones Industrial Average is flat Monday afternoon with shares of Walgreens Boots and Caterpillar delivering the strongest returns for the price-weighted average. The Dow (DJIA) is trading at 26,798, unchanged from yesterday's close.