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Rite Aid (RAD) Gains But Lags Market: What You Should Know

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Rite Aid closed the most recent trading day at $13.17, moving +1.23% from the previous trading session. The stock lagged the S&P 500's daily gain of 1.31%. Meanwhile, the Dow gained 1.9%, and the Nasdaq, a tech-heavy index, added 1.01%.

RAD will be looking to display strength as it nears its next earnings release. On that day, RAD is projected to report earnings of -$0.54 per share, which would represent a year-over-year decline of 285.71%. Meanwhile, our latest consensus estimate is calling for revenue of $5.60 billion, up 4.21% from the prior-year quarter.

RAD's full-year Zacks Consensus Estimates are calling for earnings of -$0.31 per share and revenue of $22.49 billion. These results would represent year-over-year changes of -306.67% and +2.54%, respectively.

Investors should also note any recent changes to analyst estimates for RAD. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. RAD currently has a Zacks Rank of #4 (Sell).

The Retail - Pharmacies and Drug Stores industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 228, putting it in the bottom 11% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow RAD in the coming trading sessions, be sure to utilize Zacks.com.

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