Why Rite Aid, Novavax, and RH Jumped Today
Tuesday was a mixed day for the stock market, with major benchmarks moving in different directions. The Dow Jones Industrials lost ground due to a high-profile earnings miss from a major Wall Street investment bank, but the Nasdaq Composite rose on strength among components in the technology-heavy index. Some market participants reacted negatively to news that the Senate had given up on healthcare reform, but in the summer lull, earnings reports took on greater importance as well. Some stocks enjoyed sharp gains, and Rite Aid (NYSE: RAD), Novavax (NASDAQ: NVAX), and RH (NYSE: RH) 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 12% in the wake of positive sentiment for the beleaguered drugstore chain. Now that its planned merger with Walgreens Boots Alliance (NASDAQ: WBA) has turned into a mere asset sale, Rite Aid has to figure out how to move forward as a smaller player against tougher competition. Yet some investors are growing more hopeful about Rite Aid's prospects, arguing that the chance to pay down most of its outstanding debt should reduce interest expense and boost its bottom line. Some also believe that Rite Aid might get another acquisition bid, especially if major online retailers decide that buying its remaining store network would make a good opportunity to move more aggressively into the healthcare retail business. With shares having fallen so far, more value investors are likely to look at Rite Aid as a potential bargain buy.
Image source: Rite Aid.
Source: Fool.com
Walgreens Boots Alliance Inc. Stock
Currently there is a rather negative sentiment for Walgreens Boots Alliance Inc. with 3 Buy predictions and 5 Sell predictions..
On the other hand, the target price of 32 € is above the current price of 16.55 € for Walgreens Boots Alliance Inc., so the potential is actually 93.38%.
