‘too Cheap To Ignore’? What To Watch When Cvs And Mcdonald’s Report

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CVS Health (NYSE:CVS) holds its third-quarter call at 8:00 a.m. ET on Wednesday, November 4, 2026. McDonald’s (NYSE:MCD) is expected to report before the open that day but has not confirmed the date.

Two Defensive Names on Very Different Paths

Jim Cramer said on October 8’s Mad Money that “diversification is the only free lunch in the business,” adding that owning only AI stocks “would have been a nightmare, especially if you bought them at the high.” CVS rose 1.7% over the past month to $88.52. The stock is up 10.5% year to date.

CVS has beaten EPS estimates for six straight quarters. In Q2, it earned $2.58 per share against a $1.85 consensus, and it raised full-year adjusted EPS guidance of $7.30 to $7.50 to a new range of $7.90 to $8.10.

McDonald’s gained 14.0% in a month to $265.64 but is still down 12.4% year to date. Q2 global comparable sales grew just 1.3%, and U.S. comps turned slightly negative in July.

Consensus Calls for Modest Quarterly Growth

Aetna Margins and U.S. Traffic Will Decide the Debate

CVS: A Policy Scare Meets Strong Execution

On October 6, Cramer called CVS “too cheap to ignore” at “$86 and change.” He argued a possible 5% hit to next year’s earnings “should not send a stock down 22%.” He linked the selloff to a proposed cut to Medicare reimbursements for drugs purchased through the 340B program, a federal initiative that allows eligible hospitals and clinics to buy medicines at a discount. Cramer stressed that the change is only a proposal, noting that the Supreme Court unanimously struck down a similar attempt in 2018. Shares rose after that early October call.

Suze Orman noted on October 4 that “CVS Health Corp., Aetna, Centene Corp. are also shrinking their Medicare Advantage options,” narrowing retiree plan choices. Watch Aetna’s medical benefit ratio, Caremark retention, drugstore volumes, any 340B update, and whether the 2027 adjusted EPS outlook of at least $8.44 (issued in Q2) holds.

McDonald’s: Value Has to Bring Back Traffic

On October 8, Cramer said McDonald’s “hasn’t been this cheap since 2014” at about 17 times next year’s estimates, which he compared with a historical multiple in the mid-20s. On October 1, Cramer called it “a show-me stock” and said a 3.3% yield “becomes much less of a draw” with 10-year Treasuries at 5.24%. He added that investor day “did indeed disappoint,” yet “at this level, I am tempted to be a buyer, not a seller.” After the rally, the yield now stands at 2.7%.

Barchart’s Sohini Mondal reported that analysts expect adjusted EPS of $3.37 versus $3.22 a year earlier. Keep an eye on whether new U.S. president Skye Anderson tightens value-menu execution, which only 60% to 65% of franchisees followed in Q2. Also track whether about 220 million loyalty users re-engage as digital offers return.

What “Too Cheap to Ignore” Requires Now

CVS earns the label if Aetna’s margins hold without Q2’s approximately $500 million in one-time help and management sizes the 340B risk against its 2027 outlook. Together, those two results would support a durable income story for retirees.

McDonald’s has more to prove. The report needs to show U.S. traffic recovering from July’s slip under Anderson. Without that recovery, a yield below the Treasury rate Cramer mentioned suggests the discount has a reason behind it.

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