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Katherine Ross: Our Real Money Stock of the day, CVS reported earnings reporting an EPS that came in around a dollar 84 cents, beating expectations with a dollar 77 cents and beat on revenue estimates Wednesday morning. Here to break down what the earnings mean for the healthcare sector, our Martin Baccardax, reporter for TheStreet and Jeff Marks, senior portfolio at Action Alerts PLUS. Martin, what do these earnings mean for the healthcare sector at large?

Martin Baccardax: I think it was another important beat for the sector and it just shows that the second half performance is really overshadowing the poor start that the sector had in the first six months of the year. We're only up about 8.2% and that does trail the S and P 500 but I think investors are now starting to enjoy the defensive tenor of the sector. They're seeing beets in the managed healthcare. CVS being one. United House being another. And we're also getting some clarity on the potential settlements that companies are going to have to pay for the opioid crisis. And that's giving investors a bit of confidence as well. So I think the defensive tenor, the cashflow characteristics of this sector and the second half performance make it a good buy going into the final months of the year.

Katherine Ross: Jeff, the portfolio owns CVS. So I'm wondering what did you think of this quarter?

Jeff Marks: Yeah, so we've owned CVS health for quite a long time. I really liked the quarterly results. I thought all the business segments performed pretty well against expectations. I know the front end other stores, same source sales came in a little bit lighter than expectations and that was a little bit of a disappointment coming off a strong second quarter. But pharmacy is still doing really well. And I think on the Aetna side, I was really impressed with the operating income growth, the operating income that we saw this quarter. And I think that's very key because this is a new acquisition for the company. So how they're getting a handle.. the good handle that they're having on expenses, I think is really important from investor confidence perspective. And when I think longer term, they're delivering synergies. They have this really cool health hub store format that they're launching across the country, over the next couple of years. So I think CVS is a really interesting name from a cash generating standpoint, de-leveraging standpoint to look for in the future.

Katherine Ross: Jeff, Martin, thank you so much for joining us and for more on the markets head on over to TheStreet.com.

Let's talk about Real Money stock of the day CVS  (CVS - Get Report) .

The company posted earnings before the bell Nov. 6. 

TheStreet's Martin Baccardax and Jeff Marks, senior portfolio analyst with Jim Cramer's Action Alerts PLUS portfolio, joined TheStreet to break down what the earnings mean for the markets. 

"I think it was another important beat for the sector and it just shows that the second-half performance is really overshadowing the poor start that the sector had in the first six months of the year. We're only up about 8.2% and that does trail the S&P 500 but I think investors are now starting to enjoy the defensive tenor of the sector. They're seeing beets in the managed healthcare. CVS being one. United House being another. And we're also getting some clarity on the potential settlements that companies are going to have to pay for the opioid crisis. And that's giving investors a bit of confidence as well. So I think the defensive tenor, the cash flow characteristics of this sector and the second half performance make it a good buy going into the final months of the year," said Baccardax. 

"Even New York Mets fans appreciate the prolific home run call of the crosstown rival Yankees radio play by play announcer John Sterling. "It is high, it is far...it is...GONE!! Baseball season may be over. Earnings season, not yet. CVS Health hit one out of the park on Wednesday morning," wrote Real Money's Stephen Guilfoyle over on TheStreet's sister site. 

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