3 Simple Reasons to Buy Rite Aid

1- The company is clearly making considerable

progress in terms of business turnaround and

financial performance

2- Long-term industry tailwinds and growth

opportunities

3- Rite Aid is attractively valued in comparison

to bigger peers such as Walgreen and CVS Caremark

Rite Aid is clearly moving in the right direction

- Store base restructuring

- Cost controls

- Increased focus on healthcare services

- Building customer loyalty

- Same-store sales increased 5% in April,

signaling strong demand

Source: Rite Aid

Source: Rite Aid

Source: Rite Aid

Source: Rite Aid

Industry tailwinds mean growing healthcare demand in the long term

- Aging population

- Generics wave and technological advancements of different kinds in the industry

- Broadened healthcare insurance coverage

Source: Rite Aid

Significant growth opportunities

- Store base expansion

- Wellness remodels

- Loyalty programs and discounts to gain customers and consolidate the company´s competitive position.

- Growing portfolio of pharmacy services

Net profit margin: moving in the right direction with ample room for continued improvement

Rite Aid is valued at a considerable discount versus CVS Caremark and Walgreen

Foolish takeaway

- Rite Aid is making a lot of progress over the last several years, both operationally and financially

- Strong secular tailwinds for the industry

- Growth opportunities at the company level

- The company still has room for improvement in terms of profitability when compared against peers such as Walgreen and CVS Caremark

- Higher profitability would merit a considerably higher valuation, so Rite Aid still offers substantial potential for gains

Our best pick for 2014 is positioned for explosive

gains, and you can learn more about it via our

special free report. Simply click in the link below.