Is Rite Aid Corporation Stock Now Too Cheap to Pass Up?
Shares of the struggling pharmacy retailer Rite Aid Corp. (NYSE: RAD) took another blow last month by shedding a whopping 15.8% of their value, according to S&P Global Market Intelligence. Rite Aid's stock tanked in response to the news that e-commerce giant Amazon.com (NASDAQ: AMZN) was considering moving into the retail pharmacy space, which would obviously put Rite Aid under even more pressure from a competitive standpoint.
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Amazon is reportedly set to make a decision on its retail pharmacy aspirations by Thanksgiving. If it does go this route, the tech behemoth could use its newly purchased Whole Foods stores as the "brick-and-mortar" component of this business, lessening the need to make any additional acquisitions. That's particularly bad news for Rite Aid because it's starting to look like an outright sale may be the only way to create value for its shareholders at this point.
Source: Fool.com
