1/23/2024 0 Comments Rite aid share priceTo put that in perspective, in the third quarter of its 2021 fiscal year, this metric was negative to the tune of 0.7%. Although the company has continued to struggle with weak front-end same-store sales, even that metric came in relatively strong in the quarter, clocking in at 0.4%. One of these was a 4.4% increase in the same-store sales year over year. The company was aided by a couple of positive factors here. This represented a 1.8% increase over the $6.12 billion generated the same time one year earlier. In the third quarter of its 2022 fiscal year, for instance, the company generated revenue of $6.23 billion. To see what I mean, we need only look at recent financial performance for the business. Fundamentally, Rite Aid is showing some signs of gradual improvement. But interestingly, in most respects, the opposite has actually been true. Such a significant departure from the market's return usually indicates that the picture for the company in question is anything but good. That compares to a 0.3% loss experienced by the S&P 500 over the same period of time. Since I last wrote about the company in September of 2021, shares have generated a loss for investors of 46.6%. The situation is improving for Rite Aidįrom a share price perspective, things have not been particularly great for drugstore chain Rite Aid. But given how cheap shares are getting today, it may not be a bad opportunity for investors who champion the deep value strategy of acquiring struggling enterprises at extremely low prices. Shares look dirt cheap at current pricing, but this comes with the downside of significant leverage that undoubtedly elevates the company's risk profile. ![]() Over the years, the company has struggled to generate a profit but cash flows have been generally robust. One interesting and certainly binary company for investors to consider in this market is Rite Aid ( RAD ). But at the same time, it can also result in significant upside potential. When you have dominant players in a space, it can be dangerous to buy into a third-string prospect. ![]() When it comes to the retail pharmacy space, there really are only two large players in the market that have a meaningful foothold. ![]() RiverNorthPhotography/iStock Unreleased via Getty Images
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