Down 7%: Was Rite Aid's Sell-Off Overdone?

Rite Aid had a rough day. Was the drop too much?

Jun 5, 2014 at 5:52PM

Rite Aid (NYSE:RAD) investors had a rough day, with shares cratering 7% after the pharmacy lowered its full-year guidance and reported that it anticipated only $0.04 per share in earnings versus analyst estimates of $0.08 per share. The sell-off felt a little extreme given the stock's stunning turnaround over the past several years.

But then again, competitor Walgreen (NASDAQ:WBA) reported better news, indicating that perhaps Rite Aid isn't executing as well in this competitive pharmacy environment.

So, was Rite Aid's sell-off overdone? In the video below, from Thursday's Market Checkup, the Motley Fool's health care-focused investing show, health care analysts Michael Douglass and David Williamson give their take.

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David Williamson has no position in any stocks mentioned. Michael Douglass has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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