While everybody and his uncle trumpets the importance of vaccine developers, let’s not discount the importance of a drugstore chain like Rite Aid (NYSE:RAD). Let’s also not ignore RAD stock as a potential big winner as the world tries to cope with the novel coronavirus.
The market won’t ignore Rite Aid in the near future, as the company’s next earnings announcement is scheduled for June 25, before the market open. It will include data for Rite Aid’s fiscal first quarter of 2021.
RAD stock, to be frank, hasn’t reflected the true value of Rite Aid throughout the Covid-19 crisis. It’s possible that a blockbuster earnings report will put the share price where it deserves to be.
Even without that catalyst, though, there’s a strong chance that the stock will reflect its true value soon. It’s mostly a matter of the investing community finally recognizing Rite Aid’s important role in the battle against Covid-19.
RAD Stock at a Glance
While the news of Covid-19 and the virus itself were spreading, the RAD stock price made some very interesting moves. There was a quick plunge from over $16 on March 10, to less than $10 just a couple of days later.
Then RAD’s share price bounced back. It was quite a buying frenzy as the stock rocketed above $18 within a matter of days. For a brief time, at least, the market may have recognized Rite Aid’s role in helping to keep people healthy and well-stocked with essential supplies.
RAD has remained in a range since that time, with each spike being promptly faded. A breakout moment could be in the works, though. Earnings might be the spark that starts the blaze. Still, investors should recognize that RAD shares are likely to march higher regardless of the market’s immediate reaction.
Playing Its Part in the Fight
Contributing to the battle against the spread of the coronavirus should be profitable for Rite Aid. Just as importantly, it’s the right thing to do for a society in need.
In that vein, Rite Aid has added 21 new Covid-19 testing locations in the United States. The company is partnering with the U.S. Branch of Health and Human Services (HHS) for this initiative.
With this addition, the total number of Rite Aid’s Covid-19 testing facilities is now 92. Incredibly, these facilities are able to perform around 47,000 tests on a weekly basis.
Rite Aid has thankfully provided enough operating hours for these testing sites that most people should be able to avail themselves of this essential service. Specifically, they will be open from 10:00 a.m. to 8:00 p.m. on weekdays and from 10:00 a.m. to 5:00 p.m. on weekends.
Delivering Door-to-Door Value
Additionally, Rite Aid has partnered with Instacart to deliver health and grocery items directly to people’s homes. This service is available from more than 2,400 Rite Aid locations located across 18 states.
Rite Aid COO Jim Peters observed that this collaboration could benefit individuals and families struggling during this challenging time:
At Rite Aid, we are focused on providing our customers and communities with the essentials they need during these unprecedented times … To further enhance our services, we have teamed up with Instacart to offer our customers another convenient method of shopping at Rite Aid from the safety and comfort of home.
The collaboration with Instacart is yet another example of how Rite Aid has been on the front lines during the pandemic. The company might not get the limelight shone on it like some companies do. Yet, sometimes a low-key endeavor can nonetheless be high-impact.
The Final Word
Patience may be required in order to fully capitalize on Rite Aid’s responsive endeavors during the coronavirus crisis. RAD stock will reflect the company’s true worth in time, however. If the earnings release makes this happen sooner rather than later, it’s well deserved.
Louis Navellier had an unconventional start, as a grad student who accidentally built a market-beating stock system — with returns rivaling even Warren Buffett. In his latest feat, Louis discovered the “Master Key” to profiting from the biggest tech revolution of this (or any) generation. Louis Navellier may hold some of the aforementioned securities in one or more of his newsletters.