Rite Aid Beta vs. Z Score

RADDelisted Stock  USD 0.17  0.01  5.56%   
Based on the measurements of profitability obtained from Rite Aid's financial statements, Rite Aid may not be well positioned to generate adequate gross income at the moment. It has a very high risk of underperforming in April. Profitability indicators assess Rite Aid's ability to earn profits and add value for shareholders.
For Rite Aid profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Rite Aid to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Rite Aid utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Rite Aid's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Rite Aid over time as well as its relative position and ranking within its peers.
  
Check out Your Equity Center to better understand how to build diversified portfolios. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in nation.
Please note, there is a significant difference between Rite Aid's value and its price as these two are different measures arrived at by different means. Investors typically determine if Rite Aid is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Rite Aid's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Rite Aid Z Score vs. Beta Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Rite Aid's current stock value. Our valuation model uses many indicators to compare Rite Aid value to that of its competitors to determine the firm's financial worth.
Rite Aid is currently regarded as top stock in beta category among related companies. It is currently regarded as top stock in z score category among related companies totaling about  1.66  of Z Score per Beta. . Comparative valuation analysis is a catch-all model that can be used if you cannot value Rite Aid by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Rite Aid's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Rite Aid's earnings, one of the primary drivers of an investment's value.

Rite Z Score vs. Beta

Beta is one of the most important measures of equity market volatility. Beta can be thought of as asset elasticity or sensitivity to market. In other words, it is a number that shows the relationship of an equity instrument to the financial market in which this instrument is traded. For example, if Beta of equity is 2, it is expected to significantly outperform market when the market is going up and significantly underperform when the market is going down. Similarly, Beta of 1 indicates that an asset and market will generate similar returns over time.

Rite Aid

Beta

 = 

Covariance

Variance

 = 
1.29
In a nutshell, Beta is a measure of individual stock risk relative to the overall volatility of the stock market. and is calculated based on very sound finance theory - Capital Assets Pricing Model (CAPM).However, since Beta is calculated based on historical price movements it may not predict how a firm's stock is going to perform in the future.
Z-Score is a simple linear, multi-factor model that measures the financial health and economic stability of a company. The score is used to predict the probability of a firm going into bankruptcy within next 24 months or two fiscal years from the day stated on the accounting statements used to calculate it. The model uses five fundamental business ratios that are weighted according to algorithm of Professor Edward Altman who developed it in the late 1960s at New York University..

Rite Aid

Z Score

 = 

Sum Of

5 Factors

 = 
2.14
To calculate a Z-Score, one would need to know a company's current working capital, its total assets and liabilities, and the amount of its latest earnings as well as earnings before interest and tax. Z-Scores can be used to compare the odds of bankruptcy of companies in a similar line of business or firms operating in the same industry. Companies with Z-Scores above 3.1 are generally considered to be stable and healthy with a low probability of bankruptcy. Scores that fall between 1.8 and 3.1 lie in a so-called 'grey area,' with scores of less than 1 indicating the highest probability of distress. Z Score is a used widely measure by financial auditors, accountants, money managers, loan processors, wealth advisers, and day traders. In the last 25 years, many financial models that utilize z-scores proved it to be successful as a predictor of corporate bankruptcy.

Rite Z Score Comparison

Rite Aid is currently under evaluation in z score category among related companies.

Beta Analysis

As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Rite Aid will likely underperform.

Rite Aid Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Rite Aid, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Rite Aid will eventually generate negative long term returns. The profitability progress is the general direction of Rite Aid's change in net profit over the period of time. It can combine multiple indicators of Rite Aid, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Rite Aid Corporation, through its subsidiaries, operates a chain of retail drugstores in the United States. Rite Aid Corporation was founded in 1962 and is headquartered in Philadelphia, Pennsylvania. Rite Aid operates under Diversified Wholesale And Retail classification in the United States and is traded on New York Stock Exchange. It employs 53000 people.

Rite Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Rite Aid. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Rite Aid position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Rite Aid's important profitability drivers and their relationship over time.

Use Rite Aid in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Rite Aid position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Rite Aid will appreciate offsetting losses from the drop in the long position's value.

Rite Aid Pair Trading

Rite Aid Pair Trading Analysis

The ability to find closely correlated positions to Rite Aid could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Rite Aid when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Rite Aid - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Rite Aid to buy it.
The correlation of Rite Aid is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Rite Aid moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Rite Aid moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Rite Aid can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Rite Aid position

In addition to having Rite Aid in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Technology Theme
Companies that are involved in development or distribution of technologically based goods and services such as software, IT or electronics. The Technology theme has 30 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Technology Theme or any other thematic opportunities.
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Check out Your Equity Center to better understand how to build diversified portfolios. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in nation.
Note that the Rite Aid information on this page should be used as a complementary analysis to other Rite Aid's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.

Other Consideration for investing in Rite Stock

If you are still planning to invest in Rite Aid check if it may still be traded through OTC markets such as Pink Sheets or OTC Bulletin Board. You may also purchase it directly from the company, but this is not always possible and may require contacting the company directly. Please note that delisted stocks are often considered to be more risky investments, as they are no longer subject to the same regulatory and reporting requirements as listed stocks. Therefore, it is essential to carefully research the Rite Aid's history and understand the potential risks before investing.
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