Rite Aid’s stock price movement this year
Rite Aid’s stock has plunged around 18% this year after falling 76% last year. Rite Aid is now sitting 202% below its 52-week high price. The delay and eventual termination of its initial deal with Walgreens’s (WBA) announced in October 2015 hurt the company’s stock price last year.
However, the current year has been equally bad for all major drugstore chains. Both Walgreens and CVS Health (CVS) have fallen around 13% year-to-date (or YTD) thanks to the increasing pessimism regarding the impact of Amazon’s entry into the drugstore space. However, Wall Street expects some recovery in Rite Aid’s share price this year. On average, analysts expect a 27% increase in its stock price from the current levels. They have assigned an average price target of $2.04 on the company. CVS and WBA have an even better upside. While Walgreens’s stock price is projected to increase about 30% in the next 12 months, CVS is expected to see an improvement of around 40%.
A look at Wall Street’s recommendations on RAD
Nine Wall Street analysts cover Rite Aid. They collectively rate the stock as a 3.0 on a scale where one is a strong buy and five is a strong sell. Walgreens and CVS have better ratings of 2.3 and 2.0, respectively.
Seven analysts have given the stock a “hold” recommendation on the company, while one analyst each suggests buying and holding the stock. Investors looking for exposure to Rite Aid through ETFs can consider the First Trust Consumer Staples AlphaDEX Fund (FXG), which invests 2.1% of its portfolio in the company.