In today's edition of "Buy, Sell, or Hold," analyst Austin Smith takes a look at Rite-Aid and gives the company a resounding sell rating. Being such a volatile stock, it's normal to see 5%-7% swings on a consistent basis, and watching a few big days in a row can make you feel like you're missing out on a winner, but those gains are erased just as quickly as they're earned. With an immense debt burden as well, the company simply isn't as flexible as it needs to be in order to compete with stronger rivals such as Walgreen and CVS. The few potential positive scenarios that have been outlined for the company are either unlikely or immaterial. At the end of the day, the debt here is simply too restrictive, and investors need to steer clear.
If you are looking for something different, then you should check out our new free report, "The Motley Fool's Top Stock for 2012." In it, our chief investment officer identifies his favorite company for the year. To access the report before the rest of the market catches on, click here -- it's absolutely free.
