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Rite Aid (RAD) Flat As Market Gains: What You Should Know

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Rite Aid (RAD - Free Report) closed at $12.42 in the latest trading session, marking no change from the prior day. This change lagged the S&P 500's daily gain of 0.24%. Meanwhile, the Dow lost 0.04%, and the Nasdaq, a tech-heavy index, added 0.43%.

Wall Street will be looking for positivity from RAD as it approaches its next earnings report date. The company is expected to report EPS of -$0.54, down 285.71% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $5.60 billion, up 4.21% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of -$0.31 per share and revenue of $22.49 billion. These totals would mark changes of -306.67% and +2.54%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for RAD. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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 #4 (Sell) right now.

The Retail - Pharmacies and Drug Stores industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 195, putting it in the bottom 24% 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.


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