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.

 
RAD Chart

RAD data by YCharts

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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.

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