Jim Cramer's Mad Dash: Buy CVS Health Over Rite Aid, ConAgra Over General Mills

NEW YORK (TheStreet) -- "This guidance is horrendous," TheStreet's Jim Cramer said of Rite Aid's (RAD) recent earnings report. Shares of the drugstore company are down over 15% as a result. 

On CNBC's "Cramer's Mad Dash" segment, Cramer, the co-manager of the Action Alerts PLUS portfolio, said Rite Aid's management should have seen the drop in earnings ahead of time.

"This is unacceptable to say that this was unpredictable," he added, referring to management expecting the drop in exclusivity to certain generic drugs. 

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Instead, Cramer said, investors should just stay long CVS Health (CVS) . 

Turning to ConAgra Foods (CAG) , the company beat earnings expectations after seeing a positive turnaround in some of its packaged foods brands. 

When investors consider the possible "stability" in its business coupled with its dividend and strong balance sheet, ConAgra Foods is a better buy than General Mills (GIS) , Cramer stated. 

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However, "I don't want to own any packaged good stocks other than WhiteWave Foods (WWAV) and Hain Celestial Group (HAIN) , Cramer said.

- - Written by Bret Kenwell in Petoskey, Mich.

Follow @BretKenwell

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

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