Dallas, Texas 08/05/2013 (Financialstrend) – Rite Aid Corporation (NYSE:RAD) which was witnessing the downfall in the sales persistently is trailing the two major companies namely Walgreen Company and CVS Caremark Corporation with regards to the count of stores. This downward trend in the sales was faced by Rite Aid Corporation due to the introduction of the low cost generic drugs or can be said as the non-branded drugs over the period of several quarters. Though these generic drugs are less expensive in the open market, there are known to produce the larger gross margins for Rite Aid Corporation. This can be evidently observed from the performance shown by Rite Aid Corporation during the first quarter of the fiscal year 2013 during when the margin of the generic medication expanded primarily. The Zacks Rank# 3 representing the ‘hold’ which is being carried by the stock of Rite Aid Corporation will continue to focus on the expansion of the company’s portfolio of the generic medications provided the developing demands for these kind of non-branded drugs.
But, the sales of the generic drugs by Rite Aid Corporation could be diminished by the entry of Wal-Mart Stores Incorporation into the retail market of the generic drugs. This is because the Wal-Mart Stores Inc has a broader array of manufacturers in the developing countries like India and Israel as well as in the developed countries like US. Due to this array being held by the mass merchant, Wal-Mart Stores Inc could be able to offer the drugs at more discounted prices.
During the last trading session, the stock of Rite Aid Corporation closed at + 4.33% with the total number of 34,982,745 shares being traded following the announcement of the same stores sales by Rite Aid Corporation for the month of July. At present, the Rite Aid Corporation is +232.63% above the company’s 52-week low at the recent times. This has prompted Growing Stock Report to include the stock of Rite Aid Corporation into their NYSE Gainers Watch List