Today’s Research Reports on Stocks to Watch: Walgreens Boots Alliance and Rite Aid
Shares of Walgreens and Rite Aid saw gains on Monday after reports emerged that Amazon has shelved its plans to sell prescription drugs to doctors and hospitals. Shares of CVS also soared on the news.
RDI Initiates Coverage on:
Walgreens Boots Alliance, Inc.
Rite Aid Corporation
Walgreens Boots Alliance, Inc. shares closed up 3.76% on about 9.0 million shares traded. Walgreens was one among many pharma retailers to see gains after reports revealed on Monday that Amazon has shelved its plan to sell prescription drugs to hospitals and doctors. CNBC, citing sources familiar with the matter, reported that the e-commerce giant has paused a plan that involved Amazon Business, a service that sells bulk items to business customers. A spokesperson from Amazon refused to comment to MarketWatch and said that the company’s policy is to not comment on "rumors of speculation."
Access RDI’s Walgreens Boots Alliance, Inc. Research Report at:
Rite Aid Corporation shares closed up 1.79% on Monday with about 27 million shares traded. It was last week that the drug store chain announced better than expected results on the bottom line for the fourth quarter fiscal 2018. For the fourth quarter, Rite Aid reported loss per share of one penny. This was in line with what analysts had been waiting for but was a drop from the 2 cents EPS it reported in the year ago period. Revenue was $5.39 billion for the quarter which was below the analyst expectation of $5.57 billion and worse than the $5.90 billion it reported in the same period a year ago. Looking ahead, Rite Aid said it is expecting earnings per share for fiscal 2019 to range from 2 cents to 6 cents, while analysts are expecting earnings per share of 3 cents. It was at the end of last month that the company completed its transfer of 1,932 stores and related assets to Walgreens for a total of $4.157 billion. Three distribution centers and related inventory are expected to be transferred starting September 1st, 2018. In the last three months shares of Rite Aid have seen a loss of over 20%.
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Our Actionable Research on Walgreens Boots Alliance, Inc. (NASDAQ: WBA) and Rite Aid Corporation (NYSE: RAD) can be downloaded free of charge at Research Driven Investing.
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