Why Jim Cramer Says Investors Should Buy Rite Aid (RAD) Stock Right Now

NEW YORK (TheStreet) -- TheStreet's Jim Cramer says investors currently have an opportunity to buy Rite Aid  (RAD) because of its major ongoing turn, as well as an earnings per share revival and sales revival.

Rite Aid had a setback Thursday because of timing issues on the company's deal with McKesson  (MCK) involving generics. Cramer believes this will ultimately get resolved and he does not think it will affect earnings in the second half of 2014.

Rite Aid also cut its guidance, which Cramer says caused people to panic and sell. But he notes comparable-store sales and pharmacy sales were strong. Cramer suggests investors use the weakness to buy Rite Aid.

Must Read: Jim Cramer Says Buy Rite Aid During McKesson Deal Timing Setback

 
RAD Chart

RAD data by YCharts

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.


WATCH: More videos from Jim Cramer on TheStreet TV

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

More from Markets

Oil Slumps, Gas Spikes Ahead of Holiday Weekend; Assessing the Chipmakers--ICYMI

Oil Slumps, Gas Spikes Ahead of Holiday Weekend; Assessing the Chipmakers--ICYMI

Week Ahead: Wall Street Looks to Jobs Report as North Korea Meeting Less Certain

Week Ahead: Wall Street Looks to Jobs Report as North Korea Meeting Less Certain

Dow and S&P 500 Decline, Energy Shares Fall as U.S. Crude Oil Slides 4%

Dow and S&P 500 Decline, Energy Shares Fall as U.S. Crude Oil Slides 4%

Replay: Jim Cramer on the Markets, 10-Year Yield, Oil Prices and Foot Locker

Replay: Jim Cramer on the Markets, 10-Year Yield, Oil Prices and Foot Locker

Video: You Could Live in a Ritz-Carlton or St. Regis Home

Video: You Could Live in a Ritz-Carlton or St. Regis Home