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Enough top-performing CAPS investors have turned bullish on CVS Caremark (NYSE:CVS) recently to upgrade it from a four-star rank to the highest possible five stars. More than 1,150 investors have weighed in on CVS, with many of them offering analysis and commentary on the recent optimism.
With last year's purchase of benefits management provider Caremark, sales at CVS have jumped, helping to boost profits by 84% in the first quarter. CVS also noted on the one-year anniversary of the merger that the integration of health services with its prescription business is going better than planned -- well enough to provide $700 million in cost savings in 2008, 50% higher than expected.
Not only does CVS appear to have the merger under control, the company is weathering the economic storm that is wreaking havoc on other retailers. While consumers might be holding back on expensive, big-ticket purchases, low-budget snacks and candy bars are driving profits at CVS. While other major retailers such as Target (NYSE:TGT) and competitors Rite Aid (NYSE:RAD) and Walgreen (NYSE:WAG) struggle to adapt to the changing consumer environment, CVS is cruising along.
Investors even see some potential icing on the cake in new ventures, such as Google's (NASDAQ:GOOG) new Google Health, which was launched earlier this month. Although it's still largely an experiment -- and Walgreen and Longs (NYSE:LDG) are on board the health-information service, too -- investors see potential in keeping customers coming back to CVS. As such, 1,110 of the 1,523 investors rating CVS in CAPS think the company will continue to outperform the market.
To see what the very best CAPS analysts are saying now about CVS -- as well as other winning stocks they are picking -- head on over to CAPS and have a look. The community research and resources in CAPS are totally free, unlike analyst opinions reserved for paying clients.
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