Rite Aid (RAD) closed the most recent trading day at $5.25, moving -0.94% from the previous trading session. This move lagged the S&P 500's daily gain of 1.36%. Elsewhere, the Dow gained 1.18%, while the tech-heavy Nasdaq added 0.09%.
Coming into today, shares of the drugstore chain had gained 28.95% in the past month. In that same time, the Retail-Wholesale sector gained 0.95%, while the S&P 500 gained 5.44%.
Investors will be hoping for strength from Rite Aid as it approaches its next earnings release. The company is expected to report EPS of -$0.32, down 313.33% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $5.94 billion, down 4.68% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of -$2.11 per share and revenue of $23.57 billion, which would represent changes of -39.74% and -4.05%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Rite Aid. Recent revisions tend to reflect the latest near-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. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Rite Aid is currently sporting a Zacks Rank of #3 (Hold).
The Retail - Pharmacies and Drug Stores industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 210, which puts it in the bottom 17% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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