Rite Aid (RAD - Free Report) closed the most recent trading day at $9.60, moving -0.83% from the previous trading session. This change lagged the S&P 500's 0.16% loss on the day. Meanwhile, the Dow lost 0.2%, and the Nasdaq, a tech-heavy index, lost 0.24%.
Heading into today, shares of the drugstore chain had gained 13.08% over the past month, outpacing the Retail-Wholesale sector's gain of 0.25% and the S&P 500's gain of 4.31% in that time.
Investors will be hoping for strength from RAD as it approaches its next earnings release. On that day, RAD is projected to report earnings of $0.03 per share, which would represent a year-over-year decline of 85%. Our most recent consensus estimate is calling for quarterly revenue of $5.43 billion, down 0.41% from the year-ago period.
Any recent changes to analyst estimates for RAD should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-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. 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.
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 holding a Zacks Rank of #3 (Hold) right now.
Investors should also note RAD's current valuation metrics, including its Forward P/E ratio of 80.67. This valuation marks a premium compared to its industry's average Forward P/E of 10.68.
The Retail - Pharmacies and Drug Stores industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 100, which puts it in the top 40% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.