Jim Cramer Says He Bets “The Gains in CVS Will Be Long-Lasting”

CVS Health Corporation (NYSE:CVS) was among the stocks Jim Cramer commented on as he advised investors on how to take advantage of Wednesday’s market rotation. Cramer showed a positive sentiment toward the stock, as he said:

How about these outsized moves in the health insurers and the drug distributors? Oh, I like these. I bet the gains in CVS will be long-lasting. I like UnitedHealth very much here. Humana is doing great.

Stock market data. Photo by Photo by Alesia Kozik

CVS Health Corporation (NYSE:CVS) provides healthcare solutions through insurance, pharmacy benefit management, and retail pharmacy services. Cramer discussed the company’s latest quarter during the May 6 episode and commented:

In Friday night’s game plan, I told you to expect a great quarter from CVS Health, and that’s exactly what we got this very morning. CVS also owns Aetna, a huge health insurance company, and Caremark, the number one pharmacy benefit manager. Today, they reported a magnificent 39 cent earnings beat of $2.18 basis with higher than expected revenue, and management raised their full year forecast pretty substantially. As a result, the stock shot up 7.7% today, reaching a three-year high… The stock went up a lot, but the earnings went up, so it’s not more expensive. I would argue that it’s cheaper.

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