This Sector Favors No Investor

In today's edition, analyst Austin Smith provides a quick reaction to the seemingly positive news from struggling retailer Rite-Aid. The company is posting positive same-store sales and its 19th consecutive quarter of losses at the same time. Ultimately, Austin believes the entire retail pharmacy space stands to suffer from the Medco and Express Scripts merger, and he is cautioning investors to steer clear while the dust settles from the Walgreen/Express Scripts fallout, as well as the new merger. He believes retailers will see pinched margins going forward and would like to see how the deal plays out before committing any cash.

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At the time thisarticle was published Austin Smith owns no shares of the companies mentioned here. Motley Fool newsletter services recommend shares of Express Scripts. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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