NEW YORK (
TheStreet) -- Shares of
(CVS - Get Report) are moving higher on Tuesday after beating top- and bottom-line earnings estimates. The company reaffirmed its 2014 guidance after announcing that it would stop selling tobacco products by October of this year.
Most people expected CVS's guidance to get hit from pulling tobacco products out of its stores, Cramer opined. But thanks to strong pharmaceutical sales, he likes both CVS and Walgreen (WAG) at current levels.
Cramer said sales at CVS may actually increase because there is a "very big, anti-cigarette wave in this country," which may draw shoppers into CVS stores.
As for Dean Foods (DF - Get Report), he called the stock "radioactive" because raw food costs are going up and squeezing margins. Cramer said he's also worried about WhiteWave Foods (WWAV - Get Report) for the same reason, and in particular because of rising almond prices.Rising commodity costs and the drought in California are "playing havoc" with these companies, only adding to the rising prices, Cramer said. - - Written by Bret Kenwell in Petoskey, Mich. Follow @BretKenwell