Cramer -- Rite Aid Will Go Higher; FitBit Still Reasonable at $30

NEW YORK (TheStreet) -- Shares of Rite Aid (RAD) are nearly 4% lower Thursday despite beating earnings per share estimates and reporting in-line revenue results. 

Investors are selling the stock thanks to the somewhat lower-than-expected guidance, TheStreet's Jim Cramer, co-manager of the Action Alerts PLUS portfolio, said on CNBC's "Stop Trading" segment. 

It doesn't help that Rite Aid's management doesn't communicate with the Street as well as its competitors do. However, Cramer remains bullish on the stock, saying it will go higher along with CVS Health (CVS) and Walgreens Boots Alliance (WBA). 

RAD Chart
Rite Aid RAD data by YCharts

Touching on FitBit (FIT), the company priced its initial public offering at $20, but the stock opened at $30.40, over 50% above its original pricing. 

Trading around $30 per share, the stock trades at 31 times its trailing earnings, Cramer said. However, because it's growing so fast, its forward looking PE ratio isn't as high. The company is profitable, so Cramer said investors can buy the stock until it climbs between $35 to $38. 

At the time of publication, Cramer's Action Alerts PLUS had a long position in WBA.

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