Jim Cramer's Stop Trading: Time to Buy Rite-Aid

NEW YORK (TheStreet) -- On CNBC's "Cramer's Stop Trading" segment, TheStreet's Jim Cramer, co-manager of the Action Alerts PLUS portfolio, took a look at Rite Aid (RAD). 

The stock is down 17% from its 52-week highs due to "shortfalls" in the previous quarter, he said. 

However, the company reported same-store sales growth of 3.9%, better than the 2.6% growth Cramer was looking for. 

5 Retail Companies That Outperformed in 2014

Why IBM Is Worth $220 a Share

There's No Guarantee Apple and Google Will Crush Pandora

Exxon Mobil Goes Where Few Oil Giants Tread

He also likes Walgreen (WAG), except the stock has been "pushed to extremes" by hedge funds.

Given Rite Aid's 17% decline, followed by its better-than-expected same-store sales results, it's time to "buy Rite Aid," he concluded.

-- Written by Bret Kenwell in Petoskey, Mich.

At the time of publication, Cramer's Action Alerts PLUS had no position in companies mentioned.

If you liked this article you might like

Walgreens Is Primed to Rally, With or Without Rite Aid

S&P 500 and Dow Score Records With Wall Street Upbeat Ahead of Fed

S&P 500 and Dow on Track for Records With Markets in Good Mood Ahead of Fed

Walgreens to Tweak Number of Rite Aid Stores It Buys to Win Regulatory Approval

Will the FTC Let Walgreens Go on a $5.2 Billion Rite Aid Shopping Spree?