CVS Health Corp (CVS)

They've had a terrible 9 months. A downgrade, taking on debt and lowering earnings estimates on 2 acquisitions (Signify, Oak Street). They're sandbagged. There will be good results next week. Good valuation. Sentiment has changed.

Benefited during Covid, now fallen off. Diversified. Attractive multiple. Keeps acquiring to broaden its offerings. Not sure what catalyst is to get valuation multiple up. She owns other companies in healthcare.

Healthcare sector has been challenged, but growth rates will be robust over many years. Vertically integrated powerhouse. Very high free cashflow yield, in the low teens. Trades at 9x earnings. Unloved, but patience will pay off.

It's been frustrating this year, down 25% probably due to the Oak Street and Signify deals earlier this year. CVS lowered guidance regarding the cost of these deals, but these will be accretive long term. He likes CVS long term. You can buy it now.

It has been in free fall in recent months. It is not just a drugstore anymore but is venturing into primary care and health insurance. Its profit margins could be less because many surgeries postponed during the pandemic are now being done. Wait for it to settle.

Only about 1/3 is health insurance. This week's announcement of more elective surgeries will impact them less. Vertically integrated. Unique, defensive exposure for a Canadian investor. 8x PE, massive free cashflow.

Healthcare as not performed well this year.
Technology attracting lots of investor money in the short term. 
Long term, demand for healthcare is strong.
Recent M&A and company re-organization has negatively impacted share price.
Current share price presenting value - however waiting to see how company stabilizes.

Excellent company for long term investors.
Healthcare demand very strong.
Boomers will require lots of health care going forward.
Recent M&A not a concern.
Diverse business with many revenue streams.

Health care business a very good long term sector.
Strong business with defensive characteristics.
Excellent business fundamentals.
Management very strong with deep experience.
Sees a lot of potential for business.

A long-term holding for him. Had a great 2022, but a disappointing 2023. He reduced his holding last September and March due to valuation and higher costs. It still trades at a premium within healthcare. 

Very low multiple, and has for many years. It's diversifying vertically. It never seemed to come through with earnings, so she decided to focus on more concentrated plays in healthcare such as pharma or medical devices.

Has great expectations for company, will continue to hold.
Trading ~8x earnings. 
Owns many legacy assets and brands.
~10,000 storefronts for strong retail business.
Good long term hold. 
Cash flow juggernaut with excellent margins. 
Good management team.

Makes a lot of sense for a long-term hold. Beat numbers. Poor guidance going forward. Health business, rather than just a drugstore, but this creates volatility in earnings sometimes. Focus on integrated strategy is the right approach.

It is trying to become vertically integrated in managed care, health insurance, doctors networks. It is attempting to be a turn-around story so wait until it executes on its strategy of becoming a conglomerate. There are other companies that are best in class already

Acquisitions have hampered stock price. Targets keep getting pushed our further. Lowered guidance. May be support levels around this price. Trades at 8x forward earnings, well below its historical 12.5x PE. Growth remains elusive. Dividend's great at 3.5%.