Last week, McKesson (MCK) - Get Report issued disappointing guidance and underwhelmed investors with its earnings results, which put pressure on other related stocks. One of those stocks was Cardinal Health (CAH) - Get Report , which despite the stock's 4% rally on Monday is still down almost 6% over the past three days.
The company beat on earnings per share and revenue estimates, so the quarter wasn't as horrible as investors had expected following McKesson's results, TheStreet's Jim Cramer, co-manager of the Action Alerts PLUS portfolio, said on CNBC's "Stop Trading" segment.
This group remains under tremendous pressure, Cramer added. While the recent decline sets up health care stocks for a temporary relief rally, the sector is still prone to further declines.
The health care sector -- drug makers, device companies or middlemen -- is feeling the pressure. Investment dollars continue to flow out of health care and into tech, bank stocks and M&A plays, Cramer said.
At the time of publication, Cramer's Action Alerts PLUS had no position in companies mentioned.