After years of declining sales and mounting debt, the third-largest U.S. drugstore chain made a modest comeback. Sales improved and losses narrowed, fueling speculation that the company's shares finally hit bottom.
The humble turnaround drew some big-name hedge fund managers, including billionaire investor George Soros, who are betting that improvements will send shares rising. In the year ahead, it remains to be seen if Rite Aid will continue to stand on its own. Some investors are speculating a merger with Walgreens, which has set off a run-up in the stock. A merger could generate up to $650 million in cost savings, according to a Credit Suisse report that sent shares higher in March 2012.
