RAD Chart RAD data by YCharts

Rite Aid ( RAD)

Background: Rite Aid is a retail drugstore chain in the U.S. serving customers in numerous states across the country and in the District of Columbia. The company sells prescription drugs and a range of front-end products. Rite Aid trades an average of 3.3 million shares per day with a marketcap of $1.2 billion.

52 Week Range: $0.85 to $2.12

Book Value: $-2.90

Second quarter earnings is highly anticipated by hopeful investors expecting an improving report before the market opens on Sept. 20. The analysts' mean appraisal is presently looking for a loss of 8 cents a share, a somewhat better result compared to the loss of 12 cents during the corresponding quarter last year.

Right now, Rite Aid has 0 buy recommendations out of four analysts covering the company, three holds and one sell recommendation. The average analyst target price for Rite Aid is $1.35.

I would not be surprised if the price target gets raised after the earnings release. Walgreens ( WAG) has done a great job at running circles around Rite Aid, but after following Rite Aid on and off for over a year, it appears to regaining its footing.

In the last month, the stock performed well with a 7.5% increase. Last quarter Rite Aid's earnings release was held on June 21 and the previous closing price was $1.25. Relative to a current price of $1.28, shares are up 2.4%.

The current proportion sold short based on the float is 7.5%. While 7.5% is high by normal standards, the short interest is now near the 12-month low. Bottom line, Rite Aid might blast higher from here. With a significant beat, we may witness a serious short squeeze.

If you liked this article you might like

Hawkish Fed Sends Nasdaq and S&P 500 Lower

Crazy Weak U.S. Dollar Will Make These 10 Companies Huge Winners

How to Make Money on Booming Cloud Services Demand

Jim Cramer Reveals One Stock to Play the Cloud Space

S&P, Dow Close at Record Highs, Brushing Off Geopolitical Concerns