Rite Aid (RAD - Free Report) closed at $7.13 in the latest trading session, marking a +1.57% move from the prior day. This move outpaced the S&P 500's daily gain of 0.09%. At the same time, the Dow added 0.26%, and the tech-heavy Nasdaq lost 0.17%.
Prior to today's trading, shares of the drugstore chain had lost 5.14% over the past month. This has lagged the Retail-Wholesale sector's gain of 8.32% and the S&P 500's gain of 4.92% in that time.
Investors will be hoping for strength from RAD as it approaches its next earnings release. In that report, analysts expect RAD to post earnings of $0.07 per share. This would mark 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 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. RAD is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, RAD is holding a Forward P/E ratio of 43.88. This represents a premium compared to its industry's average Forward P/E of 9.05.
The Retail - Pharmacies and Drug Stores industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 107, putting it in the top 42% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.