Rite Aid: Time For A Recovery Buy

Nov. 22, 2022 11:14 PM ETRite Aid Corporation (RAD)48 Comments
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Pinxter Analytics
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Summary

  • Rite Aid stock has cratered after a rollercoaster decade of mergers, headwinds and pharmacy revamps. It now seems to finally be on pace for a long awaited turnaround.
  • With value being unlocked with its pharmacy benefits management programs (PBM), the company may be worth as much as 3 times its current valuation.
  • As a result of these factors, I am re-initiating my long position and have once again turned bullish on RAD's long-term prospects.

A Rite Aid store is shown in Buffalo, NY, USA.

JHVEPhoto

Rite Aid (NYSE:RAD), a leading pharmacy operator in the United States, has been in a tailspin over the better part of the past decade as operational headwinds and competitive pressures, coupled with a high brick and mortar operation caused

This article was written by

Pinxter Analytics profile picture
4.82K Followers
As part of my earnings growth strategy, I invest, trade and write about small under-covered growth companies which don't get much attention from establishment analysts as well as use the strategy to interpret short and long term moves in bigger, well established companies in the United States, Europe and the Asia-Pacific region.-All articles and the information in them are my opinion based on my own research and analysis and should not be taken as investment advice without proper due diligence and advice from a professional financial adviser.

Disclosure: I/we have a beneficial long position in the shares of RAD either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: Opinion, not investment advice.

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