Rad Stock Analysis: Rite Aid Is Undervalued – Algorithmic Analysis

Rad Stock Analysis: Summary

  • Rite Aid’s stock price has soared over the last few years after management successfully turned the company around.rad stock analysis
  • The stock price will continue to increase because of the acquisition of EnvisionRx, which will help the company’s earnings.
  • New consumer loyalty program will differentiate the company from its competition.
  • I Know First Algorithm is bullish on Rite Aid in the long-term time horizons.


Rite Aid Corporation (NYSE: RAD), the nation’s third largest drugstore chain in terms of sales, had fallen on rough times after a poor acquisition just before the financial fallout in 2007. However, the stock price has risen 509.3% since the beginning of 2013, showing that the company has recovered from the disastrous acquisition to become healthy. This was in large part due to cutting costs by closing down stores that were underperforming. Also helping the company recently was its transition to a wellness store, much in the same way rival CVS Health Corporation (NYSE: CVS) had done.

Algorithmic Analysis

In this Algorithmic forecast, Rite Aid has strong signal strengths of 51.33 and 111.06 for the three-month and one-year time horizons, respectively. These signal strengths are very strong, especially the yearlong forecast. The strong bullish analysis makes sense, as the drugstore industry is benefiting from the baby boomer generation and its growing need for prescriptions, as well as the shift toward more high-cost, specialty drugs that I mentioned earlier.

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