Rite Aid Corporation is the third largest U.S. drugstore chain, serving communities primarily on the East Coast. Rite Aid has 4,621 locations in 31 states, and its shares were weak in 2017 as Walgreens Boots Alliance, Inc. reduced the number of stores that it would purchase.
Rite Aid stock closed Tuesday at $2.13, down 74.2% since the end of 2016 but in bull market territory at 54.3% above its 52-week low of $1.38 set on Nov. 9. The stock set its 52-week intraday high of $8.77 on Jan. 13, 2017, and is in bear market territory since then, down 75.7%.
Rite Aid reports earnings after the closing bell on Wednesday, Jan. 3, and analysts expect the company to post a loss of 2 cents per share. A key result will be the impact of the recent sale of 1,932 stores to Walgreens Boots Alliance for $4.38 billion. Along with remodeled wellness centers and increased online sales, this could result in better-than-expected earnings. (See also: A Quick Look at Rite Aid’s History.)
Rite Aid is not a profitable company, so it does not have a P/E ratio, but it trades at $1 to $3 per share as an “option on survival.” …read more
Read more here: Buy Rite Aid Shares as an ‘Option on Survival’
Category: RAD, WBA