NEW YORK (TheStreet) -- On CNBC's "Cramer's Stop Trading" segment, Jim Cramer said Rite Aid (RAD) is taking the pharmacy industry by storm along with CVS Caremark (CVS) and Walgreen (WAG). The three companies -- an oligopoly -- are squeezing the middle man.
Rite Aid is no longer a turnaround story, Cramer said, it is an earnings story. The company's 5% same store sales increase beat his expectations of 3% to 4% growth.
Cardinal Health (CAH) and Express Scripts Holding (ESRX) each reported bad numbers, he said. The HMOs are winning, the drug stores are winning and the middle men are losing, he said.
Cramer says Yelp (YELP) sparked the 'algorithm of the Internet' when it did well in he quarter.
"It's almost as if a machine says,'Oh, good!'" on Yelp results, "'We've got to buy Facebook (FB), Workday (WDAY) and Concur Technologies (CNQR),'" Cramer said. And you've got a move all at once to to these Internet companies.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV