Jim Cramer: Rite Aid Shares Can 'Go Much Higher' in Healthy Industry
NEW YORK (TheStreet) -- Pharmacy stocks are in a healthy position, said Jim Cramer during Monday's segment of CNBC's "Stop Trading" segment.
Case in point: Rite Aid (RAD) - Get Rite Aid Corporation Report whose shares continue to climb -- up over 3% Monday -- after reporting a beat on revenue and earnings on Thursday. The company's generic drug reimbursement issues are now behind it and it has done a great job with its store remodelings, explained Cramer, the co-manager of the Action Alerts PLUS portfolio, and he thinks shares can "go much higher."
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Cramer added Cowen & Company's Charles Rhyee upgraded Rite Aid to outperform from market perform and raised his price target to $8.50 from $6.
The drugstore industry as a whole remains quite strong, Cramer said. CVS Health (CVS) - Get CVS Health Corporation Report has done a "remarkable job" since eliminating cigarette sales from its locations, he said. Walgreen (WAG) , an AAP holding, reports earnings on Tuesday.
-- Written by Bret Kenwell
At the time of publication, Cramer's Action Alerts PLUS had a position in WAG.
