Jim Cramer on CVS Health: “I Think It’s Only Going to Get Better as the Competition Disappears”

CVS Health Corporation (NYSE:CVS) was among Jim Cramer’s latest stock calls, as he suggested investors balance portfolios with hot and cold stocks. Cramer said that he prefers CVS over NOW.

Let’s start with a solid company with a stock that sells at 11 times earnings, CVS. I’m all for buying it for the Charitable Trust, but we held off because we have too many positions. CVS owns Aetna, which I think is a pretty good, not, well, it’s not as maybe as good as UnitedHealth, but a pretty… good company. Reported a tremendous quarter earlier this week. But UnitedHealth is certainly in the ballpark.

I think Aetna’s good. CVS owns 8,932 drugstores. Not that long ago, there were three big drugstore chains: Rite Aid, Walgreens, and CVS… Walgreens got taken private. It’s now pulling back from a huge number of stores. They may not even be a factor at this pace a few years from now. Because they’re private, though, we don’t really know what it is. But I know something. CVS CEO, David Joyner, gave you a terrific quarter last time. I think it’s only going to get better as the competition disappears. I prefer CVS to ServiceNow. Okay, I’m out there.

CVS Health Corporation (NYSE:CVS) provides healthcare solutions through insurance, pharmacy benefit management, and retail pharmacy services.

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