The Motley Fool Take

CVS Caremark (NYSE: CVS) has been on a roll ever since CVS tied the knot with Caremark last year. The synergies between selling prescriptions, helping customers manage their benefits and getting a few extra items thrown in the shopping cart are looking irresistible.

The company recently posted third-quarter sales of $20.5 billion, up 83 percent over year-ago levels. Diluted earnings per share jumped 37 percent. Over the past nine months, sales rose 71 percent and earnings per share advanced 22 percent. Investors have noticed the stellar performance, boosting the stock some 25 percent higher since the beginning of the year.

The company is adding Minute Clinics into its retail stores as fast as it can. Since last quarter, CVS has contracted an additional $600 million in new businesses for 2008. Even the Save-On and Osco stores acquired from Albertsons last year are showing sales and profit margin improvements.

Competitors are trying to take a share of this market. Wal-Mart continues to lower prescription prices, and Walgreens is building stores like crazy. But CVS has a competitive advantage in the number and quality of "touch-points" it has with the prescriptionconsuming customer. As long as it can provide good service to this rapidly growing customer base, it appears unstoppable in the near term.