Cramer says Rite Aid's (RAD) big recent earnings drop should not be a red flag for Walgreen's report because Rite Aid had a transition problem with a particular drug distributor, and he wants to buy Rite Aid very aggressively.
He thinks Walgreen continues to have the favor of Wall Street because it has the ability to do inversion, the great Alliance Boots deal, a great balance sheet and a forward-looking CEO in Gregory Wasson. The stock has run a lot, but Cramer believes it can still go higher.
"We rate WALGREEN CO (WAG) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel these strengths outweigh the fact that the company shows weak operating cash flow."
Cramer also says Monsanto is the stock to play if investors want to be in the genetically-modified space. He says natural/organic is a very small percentage of the food chain, and Monsanto helps feed the world in a cheaper way. He notes Monsanto is the biotech company that allows people to get more out of corn and soy and there is an endless demand for protein and these types of products.