Rite Aid (RAD) stock: should you buy the dip?

11:55 am ET, 26 Sep 2018

Rite Aid Corporation (RAD) shares are trading at $1.25, up 1%.  The company is announcing its quarterly earnings results on Thursday before the market opens. What's driving RAD stock price? What's RAD stock price forecast?

Here is what you need to know about Rite Aid Corporation. The company reports in two segments: retail pharmacy and pharma services. The retail pharmacy segment generates revenue from the sale of drugs and a range of other merchandise. The pharma services segment offers pharma benefit management services and other pharma services.

The company recently dropped the idea of merging with Albertsons because of shareholders' preference for being a stand-alone company. The stock price which is now at a five-year low continued on the downward spiral after the merger was called off. The last quarter’s revenue fell 0.9% to $5.39 billion and the earnings per share came at -$0.01.

The second-quarter results for FY19 will be released before the market opens on September 27, 2018.  Analysts expect the company to earn -$0.01 per share on revenue of $5.36 billion.

What is the sentiment towards the RAD stock? Our technical analysis shows that:

  • The stock short-term sentiment (next 30 days) is trending negative;
  • The mid-term sentiment (3-6 months) is trending negative;
  • The long-term sentiment (9-12 months) is trending negative. 

Over the last month, Rite Aid Corporation (RAD) returned -8.9%.

Rite Aid Corporation (RAD) forward P/E ratio is 64.5, and it's high compared to its industry peers' P/E ratios.

Rite Aid Corporation (RAD) short share of float is 17.49%. The stock is much more frequently shorted than the average industry, sector or S&P 500 stock.

Rite Aid Corporation (RAD) average analyst price target ($1.60) is 20.3% above its current price ($1.33).

For the latest price and information on Rite Aid Corporation, please visit Finstead and search for "RAD price" or "RAD news".

Rite Aid Corporation (RAD) Stock Guide

Updated at: 3:17 pm ET, 02 Sep 2020

Before we start: if you're looking for RAD stock price, you can quickly find it out by visiting Finny and typing "RAD quote". If you're looking for a quick scoop on RAD stock (chart, price target, market cap, news and buy or sell analysis), go to Finny and look for "RAD". You'll get all this info in one place. Or you can just type "RAD news" to get the latest stock news.

Looking to buy or sell Rite Aid Corporation (RAD)? Interested in getting the full scoop on RAD, including earnings and dividends, stock forecast, buy or sell analysis and key stats? If so, you came to the right place.

In this RAD stock guide, we'll address key questions about RAD, above and beyond what you can find on Yahoo Finance, Zacks, MarketWatch or Morningstar.

Here is what you'll be able to find in this guide:

Earnings and Dividends: earnings, earnings date, dividend rate and dividend yield;
Analyst Predictions: stock forecast and analyst ratings;
Analysis: Finny Score and buy or sell analysis;
Key Stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio, industry, sector, and number of employees.

And here is the list of questions we'll answer:
1. What are RAD earnings?
2. When is RAD earnings date?
3. What is RAD stock forecast (i.e., prediction)?
4. RAD buy or sell? What is RAD Finny Score?
5. What are the reasons to buy RAD? Why should I buy RAD stock?
6. What are the reasons to sell RAD? Why should I sell RAD stock?
7. What are RAD key stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

So let's start. Scroll down to the question that interests you the most.

Earnings and Dividends

1. What are RAD earnings?

RAD trailing 12-month earnings per share (EPS) is -$7.80.

2. When is RAD earnings date?

RAD earnings date is June 25, 2020.

Analyst Predictions

3. What is RAD stock forecast (i.e., prediction)?

Based on RAD analyst price targets, RAD stock forecast is $10.17 (for a year from now). That means the average analyst price target for RAD stock is $10.17. The prediction is based on 8 analyst estimates.

The low price target for RAD is $6.00, while the high price target is $18.00.

RAD analyst rating is Hold.

Analysis

4. RAD buy or sell? What is RAD Finny Score?

#{finnyScore:56}Our quantitative analysis shows 5 reasons to buy and 4 reasons to sell RAD, resulting in Finny Score of 56.

5. What are the reasons to buy RAD? Why should I buy RAD stock?

Here are the reasons to buy RAD stock:

6. What are the reasons to sell RAD? Why should I sell RAD stock?

Let's look at the reasons to sell RAD stock (i.e., the bear case):

  • RAD average analyst price target ($10.17) is below its current price ($12.98). See RAD price target chart.
  • RAD short share of float is 24.78%. The stock is much more frequently shorted than the average industry, sector or S&P 500 stock. See RAD short share of float chart.
  • RAD short interest (days to cover the shorts) ratio is 5.35. The stock garners more short interest than the average industry, sector or S&P 500 stock. See RAD short interest ratio chart.
  • RAD cash to debt ratio is 0.04, lower than the average industry (0.11) and sector (0.11) cash to debt ratio. See RAD cash to debt chart.

Key Stats

7. What are RAD key stats : revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

Let's look at the key statistics for RAD:

Metrics RAD
Price $13.21
Average Price Target / Upside $10.17 / -22.98%
Average Analyst Rating Hold
Forward Dividend Yield 0.00%
Industry Pharmaceutical Retailers
Sector Consumer Defensive
Number of Employees 60,800
Market Cap $707.63M
Forward P/E Ratio 16.19
Price/Book Ratio 0.03
Revenue (TTM) $22.58B
YoY Quarterly Revenue Growth 12.20%
Profit Margin -1.84%

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