Of course, the broad stock market also is under significant selling pressure once again.
As for the company's report, it beat revenue expectations even as sales fell 3.4% year over year. But its loss of 63 cents a share missed estimates by 17 cents.
While management maintained its full-year revenue outlook, it lowered its net loss outlook and adjusted-Ebitda range. That’s as consumer spending remains pressured and supply-chain issues continue to hobble corporate operations.
Still and all, let's review Rite Aid's chart.
Trading Rite Aid Stock
The shares had been doing a pretty good job of holding the $6.50 level as support, which had formed a nice double bottom. A positive reaction could have put $8 or higher in play.
Instead, we have a massive gap-down in Rite Aid, with the $6.50 area acting as the gap-fill area to watch on any potential rebound of consequence. (The stock at last check was trading at $5.12.)
On the downside, the shares have -- at least so far -- avoided fresh 2022 lows on the day, which would come on a break of the $4.68 area.
Should Rite Aid close below that mark, the door opens down to the 2009 low at $4.
It’s hard to believe that the March 2009 low — the same month that the S&P 500 officially bottomed during the financial crisis — could be in play, but here we are, not that far from it.
For those looking at Rite Aid now, the shares look to be in no man’s land.
Over $6 and they could push up toward $6.50. But as they stand, sub-$5 leaves them open to a test of $4.68, then $4.