Why Rite Aid (RAD) Will Gain on Thursday
NEW YORK (TheStreet) -- Rite Aid (RAD) is climbing before the bell Thursday after posting better-than-expected sales and earnings in its year-ending quarter.
Before market open, shares had added 9.4% to $7.
The third-largest drugstore chain in the U.S. recorded net income of 6 cents a share and revenue of $6.6 billion.
Analysts surveyed by Thomson Reuters had anticipated net income of 4 cents a share and revenue of $6.54 billion.
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TheStreet Ratings team rates RITE AID CORP as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate RITE AID CORP (RAD) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, compelling growth in net income and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including poor profit margins and weak operating cash flow."
- You can view the full analysis from the report here: RAD Ratings Report