NEW YORK (TheStreet) -- Rite Aid (RAD) shares are up 1.4% to $8.72 in afternoon trading on Friday, rallying from yesterday's decline following the release of the pharmacy retail company's first quarter earnings results on Thursday.
Rite Aid fell yesterday despite reporting first quarter earnings of 4 cents per share that topped analysts' expectations by one cent per share.
Revenue of $6.6 billion was in-line with consensus guidance.
However, investors sold the stock yesterday on weaker than expected current quarter guidance, TheStreet's Jim Cramer, co-manager of the Action Alerts PLUS portfolio, said on CNBC's "Stop Trading" segment, but he also said that the company was poised to rally.
Today Cramer said, "The whole drug store industry is on fire and this company's so called earnings miss was really caused by an acquisition of a pharmacy benefit manager that I think will be amazing for RAD's 2016. Weakness means buy. I am obviously not alone!"
TheStreet Ratings team rates RITE AID CORP as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate RITE AID CORP (RAD) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its notable return on equity, revenue growth and compelling growth in net income. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk and weak operating cash flow."