Healthcare Sector Overview - The healthcare sector is underperforming, with bioarma companies struggling due to the Trump administration's policies and pressure on drug prices [1][2] - Managed care faces challenges as healthcare utilization increases and insurance companies struggle with pricing [2] CVS Health Performance - CVS Health is a rare outperformer in the healthcare sector, with its stock up more than 58% year-to-date [2][3] - CVS Health benefits from being the "last man standing" in the retail pharmacy space, as Walgreens faces privatization and store closures, and Right Aid shrinks [4] - CVS Health's past struggles, with its stock down 42% last year, set the stage for a turnaround [5] Etna (CVS Health's Managed Care Business) - Etna's managed care business experienced a turnaround after facing challenges due to underpricing in the face of higher medical costs, particularly in Medicare Advantage plans [5][6]
CVS is up because it faced the pain that's now hitting the rest of managed care, says Jim Cramer