Founded in by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. What in the world is going on with the proposed acquisition of Rite Aid NYSE: RAD by Walgreens Boots Alliance NASDAQ: Just a few weeks ago, the New York Post reported that the deal was likely to be approved by federal regulators.

More recently, however, the newspaper reported that Walgreens might declare that it has "certified compliance" in its application for the acquisition.

This move would force the Federal Trade Commission FTC to complete its review within 30 days. Rite Aid stock sank on this news, because the action is considered to be risky. This roller-coaster ride isn't making investors feel warm and fuzzy about the deal's chances of going through.

Perhaps the best question to ask with all the uncertainty is this: Is buying Rite Aid stock a good idea, regardless of what happens with the Walgreens buyout attempt? Walgreens first announced its intention to buy Rite Aid on Oct.

What's more important to know, however, is where Rite Aid's share price was before the proposed Walgreens acquisition was announced:. RAD data by YCharts. Should Rite Aid shares be worth somewhere close to that level if the Walgreens deal collapses? That would make Rite Aid stock a buy regardless of what the FTC decides or what Walgreens does. It's a slam dunk, right? Before you call your broker or log into your online trading account, there's more to consider.

RAD Stock Price - Rite Aid Corp. Stock Quote (U.S.: NYSE) - MarketWatch

Stock prices are generally based in large part on earnings power. Therefore, we should also look at Rite Aid's earnings then and now:.

RAD Net Income TTM data by Offline data entry job from home without any investment. Clearly, Rite Aid's earnings have declined. Is a stock with lower earnings worth the same amount as one with higher trading forex buat pemula Most of us would say it isn't.

So is Rite Aid stock not a good purchase because earnings have fallen more than its stock price has? It's not that quite that straightforward.

Earnings can be affected by many out-of-the-ordinary items. In Rite Aid's case, its earnings in were artificially higher than usual due to a large income tax benefit received that year. The following chart puts the impact of this benefit into perspective:. Generally speaking, Rite Aid is performing close to or better than it was prior to the Walgreens announcement.

Keep in mind also that Rite Aid CEO John Standley has said that the extended duration of the FTC approval process has created "a difficult operating environment" for the company.

Would you buy rite aid stock seems to me that the market has totally written off the possibility of FTC approval. And I think the piling on has pushed Rite Aid's share price well below where it should actually be trading, even if the Walgreens deal falls through. But I also still think there's a pretty good chance that the acquisition will be finalized.

If it doesn't, Rite Aid shares might drop due to the psychological letdown. However, I suspect shares will bounce back strongly over time.

In my view, buying Rite Aid stock at current levels makes sense, regardless of what happens with the Walgreens acquisition. Keith Speights has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

Rite Aid Finally Gets Some Good News As Walgreens Deal In Doubt | Stock News & Stock Market Analysis - IBD

The Motley Fool has a disclosure policy. Keith began writing for the Fool in and focuses primarily on healthcare investing topics.

Should You Buy Rite Aid Corporation (RAD) Stock? 3 Pros, 3 Cons | InvestorPlace

His background includes serving in management and consulting for the healthcare technology, health insurance, medical device, and pharmacy benefits management industries. Skip to main content The Motley Fool Fool. Premium Advice Help Fool Answers Contact Us Login. Latest Stock Picks Stocks Premium Services.

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