3 Reasons Behind Rite Aid's Incredible Run

When thinking about health-care stocks, most investors flock to exciting opportunities in the biotech and pharmaceutical spaces. Retail pharmacies, however, have also been performing exceptionally well since the start of the year. Shares of CVS (NYSE: CVS  ) and Walgreen (NYSE: WAG  ) are up 20% and almost 50%, respectively. However, there is one often overlooked company that has been on a tear since the start of 2013.

RAD Chart

Source: YCharts

Rite-Aid's (NYSE: RAD  )  shares have been under pressure in recent years, but the stock seems to be back on the right track. But what is the market so excited about? In the following video, health-care analyst Max Macaluso explains three factors that have contributed to Rite Aid's impressive growth.

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  • Report this Comment On September 27, 2013, at 6:29 AM, bluesky64 wrote:

    Max,

    Thanks for your point of view.

    Bottom line RAD will double before CVS or WAG.

    The institutional holders will walk RAD up and the one that need a winner for this yr will buy RAD for there great returns to come. RAD still has a great chance of a buy out. Unlike WAG or CVS.

    Bottom line if your looking for value go with aapl.

    Not me aapl is another msft. with in 6 months aapl will be less than $ 290. and have great value but it's over for aapl

  • Report this Comment On September 27, 2013, at 11:41 AM, skyisfalling wrote:

    To RAD's credit I have to admit the role played by its capital expenditure, just get in any RAD store and if that store have been influenced by the capital expenditure you will feel a good sensation, the stores are so much more customer friendly, there is a store full of carts, the not so full carts there is the cart of wheels, and then there is literature about your prescription ( I think it is from Hearst Publication), I mean everything for the "Customer" (it is opposite to CVS where you have to look around to find a cart ). RAD is a real asset to USA.

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