When I first recommended Rite Aid (NYSE:RAD) on July 8, I cited strong technicals and a changing investor sentiment as reasons to buy. In just under one month, the stock gave investors a return of 13%. However, recent market volatility has brought RAD down to about $8 per share from a high of $9.32.
In that article, I briefly touched on Rite Aid's rewards card which, after doing my due diligence, I now realize has incredible potential. This article is all about this card, an aspect of Rite Aid's turnaround story that I believe is being overlooked. With this in mind, I think that the stock's current price serves as an attractive entry point for a long position, and that the company's earnings report - scheduled to hit the tape on September 17 - should be great. I am pretty confident that Rite Aid will... click here to read more.
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I've been pushing Rite Aid (RAD), explaining how this stock was poised to breakout sooner or later. Now that the stock has finally broken $9.00, what now? Where does it go from here? I must admit that after today's 3% gain, RAD is a little overbought. That said, I think that the stock will not see major resistance until it reaches $10.00. The stock has not seen double digits in over ten years, and at $10.00, the resistance will be more psychological than anything. If you own Rite Aid right now, I would hold until the stock sees $10.00. The company does not report earnings until mid-September, and I'll have to see where the stock is before making a recommendation going forward. I plan on selling half of my position should RAD see $10.00, and I think you should do the same. |