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Jim Cramer on CVS: “I’m Betting It’s Much Better Now”

CVS Health Corporation (NYSE:CVS) is one of the stocks in focus in the game plan Jim Cramer shared. Cramer made some positive comments on the stock. He said:

“Next, Wednesday got me trembling in anticipation. Why? Well, this morning has a sure winner in CVS, at least from my point of view. Now, I’m betting it’s much better now that Rite Aid’s done and Walgreens is pulling back sharply.”

CVS Health Corporation (NYSE:CVS) provides health services through insurance, pharmacy benefit management, and retail pharmacy operations. On August 25, Cramer discussed the stock in detail, as he stated:

“This has been the best performer, get this, in the healthcare sector in the S&P; it’s up more than 58% for the year… Now some of this is because CVS has become the last man standing in the retail pharmacy space… But some of it’s simply because the stock of CVS already got pulverized last year… We haven’t seen numbers like this from a drugstore chain in ages…

So from end to end, CVS business is simply doing much better than it was 12 months ago. The sore spot managed care business isn’t exactly thriving, but it’s much stronger than anticipated, and seems to have gotten its arms around the most pressing problem, higher medical utilization rates. Meanwhile, the biggest division, health services, is powering forward as Caremark continues to perform well, and increasingly powerful pharmacy business is driving surprisingly strong numbers on the drugstore side because CVS no longer has any major rivals.

I bring all this up because, though the stock’s up over 58% for the year, do you know this thing only sells for just 11 times the midpoint of its new full-year earnings forecast, 11, 11. That’s ridiculously cheap…

Let me give you the bottom line here in this very exciting story: Healthcare has been horrendous this year, but CVS, one of the worst performers in the entire market in 2024… has proven to be a port in the storm for healthcare investors. It is up 58%, leads the entire cohort, fixing its most problematic business, managed care, and seeing real strength in other parts of the business, especially the pharmacy side, where it is the last man standing. Plus, given the cheapness of the stock, generosity of the dividend yield, here’s what I’m saying: Buy CVS.”

While we acknowledge the risk and potential of CVS as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than CVS and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

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