Can Rite Aid Stock Bounce Back After Last Month's 24% Drop?
No prescription seems to alleviate the pains that Rite Aid (NYSE: RAD) investors are experiencing. Shares of the drugstore operator plunged 24% in July, continuing to tumble after its once pending acquisition on behalf of Walgreens Boots Alliance (NASDAQ: WBA) unraveled. It became a much smaller asset sale in late June, and even that transaction is no lock to close.
Rite Aid stock has now closed lower for five consecutive months, shedding more than half of its value along the way. The irony here is that Rite Aid shares are trading for a little more than a third of where they were before Walgreens proposed a buyout that was originally valued at $17.2 billion. Rite Aid's store-level performance has languished since it accepted the original Walgreens proposal nearly two years ago, that's true, but at some point the sell-off has to be overdone if you accept that Rite Aid will still be around in a few years.
Image source: Rite Aid.
Source: Fool.com