Jim Cramer talks what is driving CVS higher this year

Company Performance - CVS Health has been a port in the storm for healthcare investors, with the S&P up over 58% for the year [2][3][20] - CVS's healthcare benefits division saw nearly 12% revenue growth with operating income up almost 40% year-over-year [6] - CVS posted a phenomenal 35 cent earnings beat off a dollar 46 basis [9] - CVS raised its full-year revenue guidance up by nearly $9 billion and boosted their full-year earnings outlook by 25 cents at the midpoint [10][11] - The health service division, which includes the Caremark PBM business and the intore medical clinics, put up a 102% revenue growth [12] - The drugstore business delivered a $15% billion revenue beat, with operating income up 76% year-over-year [13] Market Dynamics - CVS is benefiting from Walgreens' retrenchment and Rite Aid's bankruptcy, taking market share [4][14] - Comparable pharmacy sales were up 18% year-over-year [14] - CVS's medical benefits ratio clocked in at 899%, up 30 basis points year-over-year, but 80 basis points lower than Wall Street expectations [8] Investment Opportunity - CVS stock sells for just 11 times the midpoint of its new full-year earnings forecast and pays a $266 annual dividend, sporting a 37% yield [15][16] - UBS upgraded CVS to a buy following two strong consecutive quarters of execution [19]