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Rite Aid Is in Full Recovery Mode

NEW YORK (TheStreet) -- Rite Aid (RAD - Get Report) shares have surged after reporting fantastic results for the last quarter.

The company left the intensive care unit from 2012 when the shares traded for about a buck and shareholders wondered if the pharmacy would make it through to the other side. Rite Aid is now a prescription for continued profits, its shares at a healthy $7, up 39% for the year to date.

RAD Chart

Adding fuel to an already impressive increase in price is a 50% income beat of 6 cents per diluted share for a total of $55.4 million on revenue of $6.6 billion. That compares to analysts' predicted 4 cents for the fourth quarter ending March 1.

For the full fiscal year, the company earned 23 cents per diluted share ($249.4 million) from $25.5 billion of revenue.

The question now weighing on shareholders is whether to take the money and run or hold out for more. It's a legitimate concern considering the 10% opening morning gap on Thursday. At the time of writing, shares are trading slightly below the $7.18 open, a bearish indication after a move higher of this magnitude.

Not surprising, given the over 600% rise in share price during the previous 16 months. TheStreet's Jonathan Heller believes you shouldn't get too bullish, and he is probably right about the easy money already being made. But that doesn't mean an oversized return isn't still on the table.

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