Trade-Ideas LLC identified
) as a post-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified Rite Aid as such a stock due to the following factors:
- RAD has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $161.3 million.
- RAD is up 3.3% today from today's close.
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More details on RAD:
Rite Aid Corporation, through its subsidiaries, operates a chain of retail drugstores in the United States. The company operates through two segments, Retail Pharmacy and Pharmacy Services. RAD has a PE ratio of 49. Currently there is 1 analyst that rates Rite Aid a buy, no analysts rate it a sell, and 4 rate it a hold.
The average volume for Rite Aid has been 17.4 million shares per day over the past 30 days. Rite Aid has a market cap of $7.2 billion and is part of the services sector and retail industry. The stock has a beta of 1.66 and a short float of 3.8% with 1.60 days to cover. Shares are down 11.7% year-to-date as of the close of trading on Monday.
rates Rite Aid as a
. The company's strengths can be seen in multiple areas, such as its robust revenue growth and notable return on equity. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, generally higher debt management risk and poor profit margins.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 1.5%. Since the same quarter one year prior, revenues rose by 23.1%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. When compared to other companies in the Food & Staples Retailing industry and the overall market, RITE AID CORP's return on equity exceeds that of the industry average and significantly exceeds that of the S&P 500.
- RITE AID CORP has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has reported a trend of declining earnings per share over the past two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, RITE AID CORP reported lower earnings of $0.16 versus $2.06 in the prior year. This year, the market expects an improvement in earnings ($0.16 versus $0.16).
- Net operating cash flow has significantly decreased to $159.94 million or 56.51% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- The share price of RITE AID CORP has not done very well: it is down 21.06% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. Looking ahead, other than the push or pull of the broad market, we do not see anything in the company's numbers that may help reverse the decline experienced over the past 12 months. Despite the past decline, the stock is still selling for more than most others in its industry.
- You can view the full Rite Aid Ratings Report.