After years of outperformance, the stock of CVS Health suffered a 10-point straight decline last week, leading Jim Cramer to wonder if it is a broken company or merely a broken stock.
"CVS has gone from a market darling to a total dog, as its once-vaunted pharmacy benefit manager business has become an albatross around its neck and the company loses share to its rivals," the "Mad Money" host said.
Shares of CVS tripled from the summer of 2011 to the summer of 2015, but then fell into free-fall. They closed at $76 on Monday. The business includes both its 7,800 retail pharmacies, and its pharmacy benefit manager (PBM) segments.
Cramer boiled down CVS' issues for investors. For years, CVS was the PBM of choice for the California Public Employees Retirement System, but at the end of May it lost that business to OptumRx. Analysts at the time indicated there was increased competition in the PBM space.