Why Rite Aid, Marvell Technology, and Xunlei Jumped Today
Holiday enthusiasm continued to drive the stock market higher on Tuesday, and major benchmarks climbed toward record levels as investor sentiment remained upbeat. Several key investment banks issued their predictions for stocks in 2018, and the consensus appears to be favorable, with experts generally calling for a 10th straight year of gains. Prospects for tax reform and other business-friendly initiatives could provide even bigger boosts, but even when you look at the individual-company level, you'll find many attractive stories.
Rite Aid (NYSE: RAD), Marvell Technology (NASDAQ: MRVL), and Xunlei (NASDAQ: XNET) were among the best performers on the day. Below, we'll look more closely at these stocks to tell you why they did so well.
Shares of Rite Aid gained 5% as speculation grew about a possible endgame for the drugstore retailer. Rite Aid has been struggling greatly since its proposed merger with Walgreens Boots Alliance was rejected, forcing it to accept a much smaller deal that still leaves it with the challenge of turning its remaining network of stores around. Yet in the eyes of one set of analysts today, buying Rite Aid could be the perfect way for e-commerce giants looking to break into the pharmacy market to create a major presence in the space quickly and effectively. With Rite Aid's market capitalization below $2 billion, it would be inexpensive for a major e-commerce player to pick up the retailer. Hard-hit shareholders are ready at this point for a lifeline from any quarter, but today's gains are tiny compared to what investors in Rite Aid have lost recently.
Source: Fool.com
