In the latest trading session, Rite Aid (RAD - Free Report) closed at $5.77, marking a +1.76% move from the previous day. This change outpaced the S&P 500's 1.21% gain on the day. Elsewhere, the Dow gained 0.97%, while the tech-heavy Nasdaq added 1.35%.
Heading into today, shares of the drugstore chain had lost 21.14% over the past month, lagging the Retail-Wholesale sector's loss of 4.85% and the S&P 500's loss of 3.6% in that time.
RAD will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.07, up 135% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $5.41 billion, down 0.2% from the prior-year quarter.
It is also important to note the recent changes to analyst estimates for RAD. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. RAD is holding a Zacks Rank of #5 (Strong Sell) right now.
Digging into valuation, RAD currently has a Forward P/E ratio of 35.44. This valuation marks a premium compared to its industry's average Forward P/E of 8.74.
The Retail - Pharmacies and Drug Stores industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 205, putting it in the bottom 20% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.