Rite Aid Shows Its Strength As Earnings Approach

On Wednesday, Rite Aid (RAD) received a positive adjustment to its Relative Strength (RS) Rating, from 80 to 87.




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When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength. This unique rating identifies technical performance by showing how a stock’s price action over the last 52 weeks measures up against that of other stocks on the major indexes.

Over 100 years of market history shows that the best-performing stocks tend to have an RS Rating of at least 80 in the early stages of their moves.


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Rite Aid has moved more than 5% past an 11.68 entry in a first-stage cup without handle, meaning it’s now out of a proper buy zone. Look for the stock to create a new buying opportunity like a three-weeks tight or pullback to the 50-day or 10-week moving average.

 

While the company’s top line growth fell last quarter from 12% to 11%, the bottom line grew 108%, up from 0% in the previous report. The Pennsylvania-based drugstore company is expected to report its latest numbers on or around Dec. 19.

The company holds the No. 1 rank among its peers in the Retail-Drug Stores industry group. CVS Health (CVS) and Walgreens Boots Alliance (WBA) are also among the group’s highest-rated stocks.

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View more information: https://www.investors.com/news/stocks-with-rising-relative-price-strength-rite-aid/

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