Jim Cramer Says “Own It, Don’t Trade It” as CVS Health Gains Momentum

On September 2, a viewer on the Mad Money show inquired about CVS Health Corporation's (NYSE:CVS) recent performance, which has increased by 21% this year. The caller also highlighted the company's 3% dividend and valuation compared to its average. In response, CNBC's Jim Cramer stated: "This is CVS. Dave Joyner does a fantastic job.

I think you should own it; don't trade it. It's a terrific stock, and we want to buy it for the Charitable Trust." Cramer's enthusiasm for the company dates back to months, when he described it as a "strong buy" due to CEO David Joyner's leadership and Aetna's success against Amazon. During Q2, CVS reported $106.1 billion in revenue, a 7.3% year-over-year increase, and adjusted EPS of $2.58, up from $1.81.

The company's operating income rose 85.5% to approximately $2.43 billion. Management increased its adjusted EPS guidance for 2026 to $7.90-$8.10, up from the previous range of $7.30-$7.50, and raised its operating cash flow guidance to at least $11.5 billion. Notably, the Health Care Benefits segment's medical benefit ratio declined to 87.4% in Q2 from 89.9% the prior year.

Management expects continued margin recovery in Aetna and anticipates elevated medical-cost trends for 2027. The company is prioritizing debt reduction, having repaid $3.29 billion of long-term debt in the first half of 2026. For investors considering Cramer's recommendation, the key factors include Aetna's progress, medical cost trends, and the impact of Caremark's pricing adjustments on 2027 results.

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