In the latest trading session, Rite Aid (RAD - Free Report) closed at $6.98, marking a +0.58% move from the previous day. This change outpaced the S&P 500's 0.73% loss on the day. Elsewhere, the Dow lost 0.37%, while the tech-heavy Nasdaq lost 1.32%.
Heading into today, shares of the drugstore chain had lost 19.4% over the past month, lagging the Retail-Wholesale sector's loss of 1.32% and the S&P 500's loss of 0.27% in that time.
RAD will be looking to display strength as it nears its next earnings release. On that day, RAD is projected to report earnings of $0.07 per share, which would represent year-over-year growth of 135%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.41 billion, down 0.2% from the year-ago period.
Investors should also note any recent changes to analyst estimates for RAD. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. RAD is currently a Zacks Rank #5 (Strong Sell).
In terms of valuation, RAD is currently trading at a Forward P/E ratio of 43.38. This valuation marks a premium compared to its industry's average Forward P/E of 9.03.
The Retail - Pharmacies and Drug Stores industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 213, which puts it in the bottom 17% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow RAD in the coming trading sessions, be sure to utilize Zacks.com.