Why Rite Aid Is Poised to Pull Back

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, retail drugstore operator Rite Aid has received the dreaded one-star ranking.

With that in mind, let's take a closer look at Rite Aid, and see what CAPS investors are saying about the stock right now.

Rite Aid facts

  

Headquarters (founded)

Camp Hill, Pa. (1927)

Market Cap

$1.5 billion

Industry

Drug retail

Trailing-12-Month Revenue

$26.1 billion

Management

Chairman/CEO John Standley

CFO Frank Vitrano

Return on Equity (average, past 3 years)

4.6%

Cash/Debt

$263.6 million / $6.2 billion

Competitors

CVS Caremark

Walgreen

Wal-Mart


Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 17% of the 1,007 members who have rated Rite Aid believe the stock will underperform the S&P 500 going forward.

Just yesterday, one of those Fools, All-Star spiritof78, succinctly summed up the Rite Aid bear case for our community:

Nice market position but improperly executed. ... The stores should be more locally centric (but with national buying power) to provide small dollar high volume sales to consumers. Their debt to capital ratio is just unsustainable even with an improving economy.

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The article Why Rite Aid Is Poised to Pull Back originally appeared on Fool.com.

Fool contributor Brian Pacampara 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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