TSC Ratings has rated the company a buy since December 2008. This rating is supported by several positive factors, including its growth, notable return on equity, and good cash flow from operations. Read more here.

I would include, by the way, the biotechs, which have had a great tone all year -- I think they are just getting started. I also see great action in the Medco Healths (MHS) (express scripts) and in the device companies, where even lowly worm Boston Scientific (BSX) is working!

“I think Jim Cramer’s been studying the charts under his bedspread at night, because this chart is a thing of beauty,” joked Fitzpatrick. He recommended keeping a stop under Medco’s 200-day moving average to avoid getting hit by a downturn.

Cramer said the same can be said for Medco Health Solutions (MHS) and Exxon Mobil (XOM).

You can see another leg higher for UnitedHealth Group (UNH), I mentioned Medco Health Solutions (MHS) before, and now we see the Colgates (CL), Procters (PG) and Avons (AVP) moving on up. None of this was happening before the Daschle withdrawal! He's a catalyst, a catalyst because he didn't let the door hit him on the way out.

EVERYONE IS GOING TO TAKE A PILL

Growth

The most salient issue today is the debate between Doug and Justin over CVS (CVS) and the pharmacy benefit managers, with Doug saying that CVS is losing share to MedcoHealth (MHS). I think CVS really stumbled when it bought Caremark, just when it had a chance to bury both Walgreen (WAG) and Rite Aid (RAD). I think that MedcoHealth is taking share, but I worry about major contracts coming up in several years that could wreck margins for all players.

8:30

One that Douglas Cliggott's been adding in the downdraft is the country's biggest pharmacy benefits manager, Medco Health Solutions (MHS), down a third from its highs to 37.32. Medco stock dropped roughly as much as the broad market did from mid-September to the end of October. That suggests indiscriminate selling of Medco, which has been beaten down to a relatively low P/E, almost 14 times forward earnings, lower than its growth rate. It's rare to get Medco at a discount to its growth, says Cliggott. For the first nine months, Medco sales rose 17% to $38.3 billion and profits 25% to $829 million, or $1.74 a share. Medco expects 2008 earnings of $2.30-$2.33 a share, up 20% from 2007, and $2.67-$2.77 next year, up 15%. And it plans to buy back some $3 billion of shares. Tough economic times could play to Medco's strength. Fast-rising heath-care costs are one of Corporate America's biggest problems, so the cost benefits of mail-order drug fulfillment and generics, for example, have wide appeal to companies and consumers. Medco attributed part of its 38% third-quarter profit jump to a rise in clients and their desire to cut drug-benefit costs.

forcing consumer to use mail order

Too Long to Play out

GROWTH