Will Rite Aid Corporation (RAD) Move Higher In 2015?
Rite Aid Corporation (NYSE:RAD) had a fairly good year in 2014, especially driven by strong pharmacy sales in the latter part of the year. Does 2015 look like a much better year for the No. 3 drugstore operator in the US? There are a number of issues that appear to suggest that 2015 could be an equally good and much better year for Rite Aid.
Revenue and profit opportunities
The purchase deal that Rite Aid Corporation (NYSE:RAD) stuck with McKesson Corporation (NYSE:MCK) is seen as a good move to help Rite Aid improve its margins. Rite Aid is expected to realize purchase savings under the agreement with Rite Aid so that it can earn higher profits.
Rite Aid Corporation (NYSE:RAD) is also expanding into the health and wellness sector, which promises higher margins, hence better earnings. An increase in generic offering is also expected to help the company improve its margins this year. The other opportunity for Rite Aid
is in the expansion of the Affordable Care Act. As more Americans sign up for the cymbalta cost health insurance coverage, the company looks forward to gaining new customers in 2015, which is good for its top-line.
A combination of the above revenue and profit grow opportunities coupled with cost-cutting are expected to support earnings improvement zoloft in the company, hence driving share prices up.
Latest sales update
Rite Aid Corporation (NYSE:RAD) reported that its drugstore sales acne accutane increased 4.9% in December 2014 to $2.21 billion. The http://abilifygeneric-online.com/catalog/Depression/Sinequan.htm increase was fueled by strong performance in the pharmacy segment. Pharmacy sales were up 7.3% and prescription rose 5.1%. The performance in December surpassed that of November, during which same-store sales edged up 5.1%. Rite Aid operated about 4,570 stores in December.
U.S. drugstore companies, including Walgreen Company (NYSE:WAG) is adjusting to a broader and diversified offering to attract more revenue. The industry is particularly expanding into the offering of health and wellness products. Drugstores are excited by the higher margins in the selling of beauty products.