Rite Aid Corporation (NYSE:RAD) Impressive Turnaround, Making it a Possible Takeover Candidate

Boston, MA, 03/24/2014  (usastockreports) – Investors at Rite Aid Corporation (NYSE:RAD) have been heavily rewarded since last year, as the store continues to flourish in the market. The closure of unsuccessful locations has considerably improved the company’s profit margins, which has also been enhanced by growth in same store sales. Rite Aid continues to receive favorable ratings in the market as a result of growth in shares of up to 245% over the past year.

The turnaround has prompted Goldman Sachs Group Inc. (NYSE:GS) analysts to almost double the company’s stock estimate, the growth in shares making it a possible takeover candidate. Rite Aid was its stock rise by a high of 7.5% on March 12 after Goldman Sachs analyst made remarks that the stock was destined to grow even further despite tripling last year and returning to profitability.

Rite Aid Corporation (NYSE:RAD) is attracting lots of interest from big chain stores like Walgreen Company (NYSE:WAG) and CVS Caremark Corporation (NYSE:CVS) as result of its restructuring process that has seen it get back to profitable ways. Among its peers, Rite Aid commands the highest cash flow yield with profit multiples that are making it one of the cheapest chains worldwide.

Rite Aid Reports improved same store sales for February

Rite Aid Corporation (NYSE:RAD) continues to gain in the market having seen its same store sales for the five weeks ending March 1, 2012 grow by 1.5% over the prior year same period. Same stores sales for the month of February was slightly down by 1.8% because of a decline in sales for flu related drugs.

The company’s drug store sales for the five week period grew by 2.4% to a high of $2.515 billion compared to $2.46 billion reported for the same period last year. Rite Aid prescription sales accounted 69.1% of the total drug store sales.

Rite Aid Corporation (NYSE:RAD) was down by 3.35% on Friday trading session closing the week at a low of $6.64.

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