Rite Aid Corporation is one of the retail drugstore chains. The RAD stock at https://www.webull.com/quote/nyse-rad company’s segments are including Retail Pharmacy and Pharmacy Services. This company is operating under The Rite Aid name. It is operating approximately 4,560 stores in over 30 states across the country and the District of Columbia. The Company’s Retail Pharmacy segment is consisting of Rite Aid stores, RediClinic, and Health Dialog. It is selling brand and generic prescription drugs, as well as an assortment of front-end products that are including health and beauty aids, personal care products, seasonal merchandise, and a private brand product line. The Company’s Pharmacy Services segment is consisting of EnvisionRx, which is providing a range of pharmacy benefit services.
A Good Time To Start Building A Position
CVS Health (CVS) is one of the very few companies in the market to have not withdrawn the fiscal 2020 guidance. The company has also come out with solid first-quarter performance, partly driven by panic-buying in March 2020. However, despite the overall favorable performance, CVS Health continues to be unloved on the market.
- Robust Dividend Pick During The Covid-19 Pandemic
CVS’s current dividend yield is a solid 3.17%, much higher than the 10-year Treasury yield of 0.64% and S&P 500 dividend yield of 2.05%. The RAD stock company has sufficient wiggle room to sustain its dividend program. The company has grown its dividends by 2.87% annually from 2010 to 2019. In the first quarter, the company paid $650 million in dividends to shareholders. The company has developed a robust strategy to counter the headwinds in the retail pharmacy business.
- The Major Threat For Pharmacy Retailers
The company partnered with United Parcel Service (UPS) in April 2019, wherein UPS subsidiary UPS Flight Forward (UPSFF) started using drones to deliver prescription medicines from a CVS pharmacy to The Villages, Florida for the largest U.S. retirement community, home to more than 135,000 residents. In July 2019, the two companies announced the addition of UPS Access Point locations in standalone CVS Pharmacy locations nationwide, allowing consumers to pick up and return packages.
- First-quarter performance from the COVID-19 outbreak
In the first quarter, CVS reported revenues of $66.75 billion, a YoY rise of 8.29%, and ahead of the consensus by $2.64 billion. The company’s non-GAAP EPS (earnings per share) was $1.91, ahead of the consensus by $0.28. The company saw an acceleration of prescriptions dispensed, strong front store sales, and a modest reduction in discretionary medical utilization in March 2020. You can also check teva stock at https://www.webull.com/quote/nyse-teva.