Why Rite Aid Corporation (RAD) Is An Unattractive Stock Today

Rite Aid Corporation (NYSE:RAD) is a stock to watch today. At current price of $0.46, the shares have already lost -0.02 points (-5.18% lower) from its previous close of $0.48. The stock sets an active trading volume day with a reported 2320115 contracts so far this session. RAD shares had a relatively better volume day versus average trading capacity of 16.88 million shares, but with a 1.02 billion float and a -14.71% run over a week, it’s definitely worth keeping an eye on. RAD share price has been trading recently between $0.43 and $0.4925. There are some brokerage firms that offer lower targets than the average, with one of them, even setting their price target at $0.

The most recent news story about the stock that appeared in Yahoo Finance‘s news section was titled “CVS stock price target lowered to $75 from $90 at Raymond James” and dated April 18, 2019.

During the recent trading session for Rite Aid Corporation (NYSE:RAD), the company witnessed their stock drop by $-0.05 over a week and tumble down $-0.24 from the price 20 days ago. When compared to their established 52-week high of $2.12, the high they recorded in their recent session happens to be lower. Their established 52-week high was attained by the company on 06/26/18. The recent low of $0.43 stood for a -78.34% since 04/17/19, a data which is good for most investors who are looking to take advantage of the stock’s recent rise. A beta of 1.81 is also allocated to the stock. Since the beta is greater than one, it implies that the stock is more volatile than the market, a data that traders are keeping close attention to.

Looking at the current readings for Rite Aid Corporation, the two-week RSI stands at 29.31. This figure suggests that RAD stock, for now, is overbought, meaning that the shares are not stable in terms of price movement. The stochastic readings, on the other hand, based on the current RAD readings is similarly very revealing as it has a stochastic reading of 13.79% at this stage. This figure means that RAD share price today is being overbought.

Technical chart claims that Rite Aid Corporation (RAD) would settle between $0.51/share to $0.53/share level. However, if the stock price goes below the $0.45 mark, then the market for Rite Aid Corporation becomes much weaker. If that happens, the stock price might even plunge as low as $0.41 for its downside target. The stock is currently in the red zone of MACD, with the indicator reading -0.04. Traders are always alerted for the move of a stock above or below the zero line due to the fact that the reading is an indicator of the position of the short-term average relative to the long-term average. If the MACD is above the zero line, then the short-term average relative is above that of the long-term average, thus implying an upward momentum. Vice versa is the case if the MACD is below the zero line.

Analysts at Guggenheim, assumed coverage of RAD assigning Sell rating, according to their opinion released on April 18. Goldman, analysts launched coverage of Rite Aid Corporation (NYSE:RAD) stock with a Sell recommendation, according to their flash note issued to investors on September 06. Analysts at Evercore ISI, made their first call for the equity with a Underperform recommendation, according to a research note that dated back to January 05.

RAD equity has an average rating of 4, with the figure leaning towards a bullish end. 4 analysts who tracked the company were contacted by Reuters. Amongst them, 1 rated the stock as a hold while the remaining 3 were split even though not equally. Some analysts rate the stock as a buy or a strong buy while others rated it as a sell. 0 analysts rated Rite Aid Corporation (NYSE:RAD) as a buy or a strong buy while 3 advised that investors should desist from purchasing the stock or sell them if they already own the company’s stock.

Moving on, RAD stock price is currently trading at 24.21X forward 12-month Consensus EPS estimates, and its P/S ratio is 0.06 while for the average stock in the same group, the multiple is 1.33. Rite Aid Corporation current P/E ratio of 23.93 means it is trading at a premium against its industry’s 21.54. In the past 5 years, this ratio for the stock has been fluctuating between 3.84 and 1426.7.