Sep 28 Earnings: Rite Aid - Way Oversold, Earnings Will Surprise
Updated
The company's share price has been under severe pressure since the deal with Walgreens 
WBA has fallen through and low pharmacy reimbursement rates.
Rite Aid's organic growth remains impressive, posting double digit sales growth in 2016. Earnings should get a boost from aggressive cost cutting measures.
I believe the company's share price is way oversold and earnings revisions should prove fruitful in the next 6 months.
I'm initiating the company with a $3.50 PT for the post-earnings move and upward of $4.00 heading into 2018.
WBA has fallen through and low pharmacy reimbursement rates. Rite Aid's organic growth remains impressive, posting double digit sales growth in 2016. Earnings should get a boost from aggressive cost cutting measures.
I believe the company's share price is way oversold and earnings revisions should prove fruitful in the next 6 months.
I'm initiating the company with a $3.50 PT for the post-earnings move and upward of $4.00 heading into 2018.
Trade closed: stop reached
Stop reached. Closed.
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