Rite Aid Corporation (RAD): Today's Featured Retail Winner

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model

Rite Aid Corporation ( RAD) pushed the Retail industry higher today making it today's featured retail winner. The industry as a whole closed the day down 0.7%. By the end of trading, Rite Aid Corporation rose $0.05 (2.0%) to $2.60 on average volume. Throughout the day, 17,930,921 shares of Rite Aid Corporation exchanged hands as compared to its average daily volume of 17,384,400 shares. The stock ranged in a price between $2.53-$2.60 after having opened the day at $2.57 as compared to the previous trading day's close of $2.55. Other companies within the Retail industry that increased today were: QKL Stores ( QKLS), up 9.4%, dELiA*s ( DLIA), up 8.7%, ALCO Stores ( ALCS), up 6.3% and Kohl's ( KSS), up 4.7%.
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Rite Aid Corporation, through its subsidiaries, operates a chain of retail drugstores in the United States. Rite Aid Corporation has a market cap of $2.3 billion and is part of the services sector. The company has a P/E ratio of 21.1, above the S&P 500 P/E ratio of 17.7. Shares are up 87.5% year to date as of the close of trading on Wednesday. Currently there is 1 analyst that rates Rite Aid Corporation a buy, no analysts rate it a sell, and 2 rate it a hold.

TheStreet Ratings rates Rite Aid Corporation as a hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we find that the company's profit margins have been poor overall.

On the negative front, China Jo-Jo Drugstores ( CJJD), down 13.5%, ValueVision Media ( VVTV), down 4.7%, SUPERVALU ( SVU), down 4.7% and Susser Holdings Corporation ( SUSS), down 4.5% , were all laggards within the retail industry with Wal-Mart Stores ( WMT) being today's retail industry laggard.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the retail industry could consider SPDR S&P Retail ETF ( XRT) while those bearish on the retail industry could consider ProShares Ultra Sht Consumer Goods ( SZK).

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