In the latest trading session, Rite Aid (RAD) closed at $15.16, marking a -0.52% move from the previous day. This change lagged the S&P 500's 0.77% gain on the day. Elsewhere, the Dow gained 0.44%, while the tech-heavy Nasdaq added 1.49%.
Coming into today, shares of the drugstore chain had lost 11.5% in the past month. In that same time, the Retail-Wholesale sector gained 9.49%, while the S&P 500 gained 5.03%.
RAD will be looking to display strength as it nears its next earnings release. In that report, analysts expect RAD to post earnings of $0.11 per share. This would mark a year-over-year decline of 8.33%. Meanwhile, our latest consensus estimate is calling for revenue of $5.76 billion, up 7.27% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.51 per share and revenue of $23.49 billion, which would represent changes of +240% and +7.12%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for RAD. These recent revisions tend to reflect the evolving nature of short-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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. RAD is currently a Zacks Rank #1 (Strong Buy).
Digging into valuation, RAD currently has a Forward P/E ratio of 30.18. This valuation marks a premium compared to its industry's average Forward P/E of 12.02.
The Retail - Pharmacies and Drug Stores industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 28, which puts it in the top 12% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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