CVS Health

Aetna, the insurance arm, made 912 million dollars in profit this quarter, nearly triple the 314 million it made a year ago. It now spends about 91 cents of every dollar it collects on members' medical bills, down from almost 93 cents, which leaves far more room for profit. Across all of CVS, core profit jumped 21 percent.

CVS has already brought in 15.3 billion dollars in cash from its operations this year, and it raised its full year goal to at least 15.5 billion, up from 11.5 billion. It also lifted its profit outlook to at least 8.20 dollars per share and expects at least 420 billion dollars in revenue. That extra cash pays down debt and protects the dividend.

Over the past year, CVS kept only about 1.2 cents of profit for every dollar it brought in. Aetna still spends more than 91 cents of every member dollar on medical care, so a small jump in hospital bills can wipe out a quarter's gains. CVS itself is staying cautious for the rest of the year because medical costs are still running hot.

For 2027, just over 69 percent of Aetna's Medicare members will be in plans earning 4 stars or more on the government's quality scorecard, down from over 81 percent this year. Fewer top plans usually means smaller bonus checks from Medicare. With so much riding on decisions made in Washington, this stock can move hard in a single day.