Stock price when the opinion was issued
Weak technical structure. 200-day MA falling, and stock price is below that. Longer-term weekly charts look just as tough. Earnings are tough in physical stores. Trump's (perhaps empty) threats to remove middle benefits management has impacted stock. Good yield at 5.81%, but how secure is it?
Keep a close eye on it, as technicals are telling you that things could get worse.
Shocking that it rallied 25.8% in January, since it was spiralling last year, down 43%. There's no clear catalyst for their rally, though it helped that Medicare payments would increase from 2025 to 2026. He's waiting for their report next Wednesday before deciding.
Is up 50.5% this year, benfitting from chief rival Walgreens are going private, and CVS' managed care business, Aetna, is putting up better numbers. CVS got too cheap last year, but mounted a comeback after hiring a new CEO. But it remains a drugstore chain, which he doesn't like, given Amazon's dominance.
Was down 43% in 2024, led by their managed care business, to be one of the worst stocks of 2024. But that business is now finally turning around, +12% in revenues in Q2 YOY, and revenues beating the street. So, the health insurance side is doing much better. They raised revenue guidance and full-year earnings. Firing on nearly all cylinders: drug store, pharmacy benefits, health service division (including in-store medical clinics) saw 10.2% revenue growth. Also, the front-of-store and pharmacy delivered a strong revenue beat and growing 12.5% YOY as competitors have vanished (i.e. RiteAid). Pharmacy sales were +18% YOY. CVS shares are up 58% this year and trades at only 11x PE and pays a 3.7% dividend. The CEO has done a remarkable job this year. Has more room to run.