Today’s Research Reports on Stocks to Watch: Rite Aid and Costco
Rite Aid made big headlines yesterday after it was revealed that the drug store chain has called off its merger with Albertsons. While some shareholders cheered, some traders looked concerned as the stock dropped over 11%. Shares of Costco also went into the red. It was on Wednesday that the bulk retail chain announced its numbers for July.
RDI Initiates Coverage on:
Rite Aid Corporation
Costco Wholesale Corporation
Rite Aid Corporation shares closed down 11.49% yesterday on significant trading volume of almost 103 million shares. The stock tanked after the company announced that it had cancelled its merger with the grocer Albertsons. Chairman and CEO John Standley said in a prepared statement that Rite Aid would continue "build momentum" for big parts of its business including renovated stores, expanded pharmacy services and its customer loyalty program. Many shareholders were thrilled that the merger was called off. Steve Krol, an investor with 260,000 Rite Aid shares, was adamant for the deal to fall apart and wants management to step down. Another investor, Barry Endelson, who has over 5,000 shares of the stock said, "I am worried about what will happen with Rite Aid, but if the merger went through I’d have to worry about what happened with Albertsons. Rite Aid is a less complicated operation to fix."
Access RDI’s Rite Aid Corporation Research Report at:
Costco Wholesale Corporation shares closed down 2.82% on about 3.5 million shares traded on Thursday. It was on Wednesday that the big bulk retailer reported data for the retail month of July. The company reported net sales of $10.59 billion for the four weeks that ended August 5th. This was an increase of 10.1% compared to $9.62 billion last year. For the first 48 weeks of fiscal 2018, Costco has seen net sales of $127.40 billion, which is an increase of 12.1% from $113.70 billion a year ago. Costco will be announcing fourth quarter results on October 4th. Analysts estimate that the company will report EPS of $2.29 for the quarter. The company currently operates 757 warehouses, including 526 in the United States and Puerto Rico, 99 in Canada, 38 in Mexico, 28 in the United Kingdom, 26 in Japan, 14 in Korea, 13 in Taiwan, 9 in Australia, 2 in Spain, 1 in Iceland, and 1 in France.
Access RDI’s Costco Wholesale Corporation Research Report at:
Our Actionable Research on Rite Aid Corporation (NYSE: RAD) and Costco Wholesale Corporation (NASDAQ: COST) can be downloaded free of charge at Research Driven Investing.
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