CVS Stock was ‘Fraught’ to Jim Cramer, Now It’s Up 49%

The Jim Cramer effect strikes again, this time for CVS Health (CVS). The Mad Money host previously called the company’s balance sheet situation “fraught.” However, since that comment in December 2024, the stock is up nearly 50% in 2025, with earnings also reportedly up.

Although he allegedly achieved an average annual return of 24% while actively managing his fund, Cramer & Co., Jim Cramer has achieved a near-miraculous ability to recommend or disavow a stock — only for it to make a sudden move in the opposite direction. While it isn’t always an instantaneous effect, it notably comes after a short period.

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At the time of Cramer’s warning, CVS shares were trading at $44.36. It’s important to know that CVS did not have a solid year in 2024, convincing experts like Cramer that the stock was “fraught.” In January a 4% increase in Medicare Advantage reimbursement rates was proposed, leading to a stock recovery. A month later on February 12, the company released its Q4 and full-year 2024 earnings report. The report revealed that both earnings and revenues came in above analyst estimates. Now, shares are trading north of $66.

This week, Interim president of CVS Caremark Ed DeVaney took charge of leading CVS’ pharmacy benefit manager. The company has seen plenty of leadership changes recently as the company’s insurance segment struggles to manage increased medical costs. The move looks like a good one thus far, with CVS stock up big today.