NEW YORK (TheStreet) -- Shares of CVS Health (CVS) were plummeting by 10.38% to $74.71 in early afternoon trading on Tuesday, after the company reported a downbeat outlook for 2016 and reported an expected loss of prescriptions for 2017 before today's opening bell.
The company lowered its outlook for the 2016 year to between $5.77 and $5.83 per share from between $5.81 and $5.89 per share. It also expects to lose 40 million prescriptions for 2017.
CVS Health is getting hit by a loss of market share to Walgreens Boots Alliance (WBA), TIAA Globale Asset Management Portfolio Manger Stephanie Link said on CNBC's "Halftime Report" on Tuesday afternoon. "[CVS Health] didn't say Walgreens, but we all know the contracts that they lost were to Walgreens."
Walgreens stock was coming in today so Link is buying it, she claimed. The company needs Rite Aid (RAD) "to really work," but it's still worth buying right now.
However, because CVS is down about 33% from its highs, "you have to start looking at that company," she added. CVS is a "high-quality company" and "it's not going away."
Shares of Walgreens were lower in early afternoon trading, while shares of Rite Aid were higher.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
TheStreet Ratings team rates CVS as a Buy with a ratings score of B. This is driven by multiple strengths, which the team believes should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks the team covers.