CVS Health Corp (CVS)

Medicare side really squeezed on costs, government prices can't keep pace. PBMs are always a target in US. Always looks cheap, single-digit PE for a long time. Not interested.

Absolutely would buy it here. An end-to-end healthcare company, including recently into homecare. Sizable hit to stock price, selling at 7x earnings. Incredibly well capitalized, lots of free cashflow. Solid dividend. Compelling value.

Some pressure from US regulations on PBM part of the business.

Health care sector seeing strength. Good for investors. From technical perspective, stock has broken down - not performing well. Overall, is a strong business. Would buy on weakness. Weakness in share price, a good time to buy. 

Tough earnings today, stock down significantly. In a good space, particularly with demographics, but not achieving, not following through on plans, perpetually sideways. Will probably come down further over the next few days. Has the feeling you could buy and trade up to $60-70. Don't own for the long term.

It reports Wednesday. Was it smart to install self-checkouts amid the theft epidemic? Will they avert recent weakness like Humana and other peers?

Frustrating. Very low multiple. Number of acquisitions to enhance vertical integration. Two steps forward, one back. Not a disaster, but hasn't lived up to promise. He's not ready to sell yet, continues to buy for new clients.

Vertically integrated, taking on a bigger role in overall patient care. In the right direction of where pharmacies are going, but pieces have been volatile, as have earnings.

Unique healthcare opportunity with retail pharmacy, health insurer, PBM, primary care network. Vertically integrated healthcare behemoth, cashflow diversification. Trades inexpensively at less than 10x, gushes cash. Free cashflow yield of 10%. Buying back shares. Regulatory reform overhang. Lower-risk healthcare opportunity.

It reports Wednesday. They'll likely talk more about their transformation, but he has worries about their Aetna management--could it fall prey to the same medical-loss ratio issues that hurt Humana?

One of the cheapest stocks he owns, trading less than 10x earnings. Soup to nuts healthcare company. Punished because post-Covid retail sales are down. Sum of parts is worth well north of $100. Core holding.

Now, they're America's biggest drug store operator, an area which did well during Covid, but is struggling with theft and other reasons. They're one of the big three pharmacy benefit managers, historically a good business and remains decent. This is a good company, but has been caught up in drug store weakness and sentiment that says sell. Going forward, though, this is an investment. Pays a 3.6% dividend and trades at a 10x PE.

Bought at less than 10x earnings with recent dividend increase is good for share price appreciation. Recent M&A also good for investors. Will continue to own shares. Excellent management team and solid dividend. Weakness is sector creating opportunities to buyout competitors. 

Price target was raised today. This peaked in 2020-1 then was hit with a lot of bad news, like doubts over Signify and Oak Street acquisitions. But that negative sentiment has reversed, like their Medicare Advantage stars rating has gone up, and the street sees profitability rising in their pharmacy benefits management system, based on a new model last month. Trades under a cheap PE and pays a 3% dividend. He targets over $100 in 12 months. Is underloved and over-owned.

They just had a good investor day. If this breaks $76, it will rocket.

Retail pharmacy chain business very strong. Largest health insurance plan very good business. Things stock is under valued. P/E lower than peers. Would recommend watching. Not buying at this time. Scored 8/10 on fundamentals. Expecting 30% upside. Good if recession occurs.