Today we are watching…
1. Rite Aid (#rad)
Rite Aid has delayed its earnings results announcement till next week (26th). Portentous? For a long time, bulls have been hoping for a turnaround that could boost Rite Aid’s stock, and a new CEO has finally come on board. But will he make any difference? Market experts doubt it and recommend a Sell. Meanwhile, with its price down over 95% from its early 2017 highs, the stock’s valuation seems like it should be reasonable – in other words cheap. However, it’s important to put the performance of Rite Aid stock in the context of the pharmacy space. The entire industry is struggling right now.
2. Winnebago (#wgo)
For a company that shows weak fundamentals it performs well; shown by its strong rate of return, and for reaching a recent technical milestone – its relative strength index (RSI) rising above the magic 80+ mark which is a premise for its price constantly closing higher. And you can add to this the fact that analysts recommend it as a Buy. Meanwhile the Invstr community has historically been quite bullish and shown a strong level of trading accuracy (82%). Its confidence is further highlighted by the announcement Monday that it has acquired RV manufacturer Newmar Corp. for $344M.