NYSE:CVS
69.30
1.76
(2.61%)
CVS Health is an American retail pharmacy and health care company headquartered in Woonsocket, Rhode Island.
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CVS Health Corp
CVS-N
Analysis and Opinions about CVS-N
Signal
Opinion
Expert
TOP PICK
TOP PICK
Stockchase Research Editor: Michael O'Reilly CVS, the 2nd largest pharmacy in the US, recently came under pressure with the announcement of Amazon stepping into the pharmacy space. However, now trading at 11x earnings, CVS is good value here -- especially after announcing they are hiring 15,000 staff in Q4 to likely become a mass vaccine distributor. Recent earnings of $1.66 per share beat expectations of $1.34. Management raised guidance of annual 2020 earnings to $7.35-$7.42 per share, above analyst calls for $7.23. It pays a great dividend, backed by a 33% payout ratio. We would buy this with a stop-loss at $57, looking to achieve over $82 -- over 21% potential. Yield 2.96% (Analysts’ price target is $82.43)
PAST TOP PICK
PAST TOP PICK
November 19, 2020
(A Top Pick Nov 21/19, Down 9%) He has exited this stock a while ago. Amazon entering the pharma space is negative for CVS. The split congress is a relief for the healthcare space. The pull back is probably exaggerated. A holistic company and a value trade. 3% dividend. Prefers to look elsewhere for more growth.
(A Top Pick Nov 21/19, Down 9%) He has exited this stock a while ago. Amazon entering the pharma space is negative for CVS. The split congress is a relief for the healthcare space. The pull back is probably exaggerated. A holistic company and a value trade. 3% dividend. Prefers to look elsewhere for more growth.
SELL
SELL
November 16, 2020
This is a stock he once owned. This is a tough industry. Both pharma and front store. He thinks there are better places to invest.
Show full opinionHide full opinionThis is a stock he once owned. This is a tough industry. Both pharma and front store. He thinks there are better places to invest.
BUY
BUY
November 16, 2020
A way to play the vaccine trade? CVS will benefit from people coming into their locations to get the Covid vaccine, because those customers will wind up buying stuff.
Show full opinionHide full opinionA way to play the vaccine trade? CVS will benefit from people coming into their locations to get the Covid vaccine, because those customers will wind up buying stuff.
HOLD
HOLD
November 12, 2020
Retail pharma and health insurance. Reported a pretty good quarter. Attractive multiple, still single digits. Healthcare reform was an overhang, but the divided Congress may dampen that reform. Earnings multiple should expand, and stock should do well in foreseeable future.
Show full opinionHide full opinionRetail pharma and health insurance. Reported a pretty good quarter. Attractive multiple, still single digits. Healthcare reform was an overhang, but the divided Congress may dampen that reform. Earnings multiple should expand, and stock should do well in foreseeable future.
BUY
BUY
November 11, 2020
After CVS bought Aetna CVS remains a really cheap stock at 9x earnings. The new CEO is fine; she's from the health maintenance business. You can invest in the dispensing of the forthcoming vaccine(s) through CVS.
Show full opinionHide full opinionAfter CVS bought Aetna CVS remains a really cheap stock at 9x earnings. The new CEO is fine; she's from the health maintenance business. You can invest in the dispensing of the forthcoming vaccine(s) through CVS.
BUY
BUY
October 23, 2020
He likes CVS a lot fundamentally and also on a valuation basis. The company is vertically integrating. They most recently bought an insurer and also introduced a good partial solution to costly healthcare solutions. The HealthHub gives access to a nurse partitioner who can prescribe medical treatment. There is a long run-way in this regard. They trade at less than 10x earnings with a good dividend. There is some execution risk.
Show full opinionHide full opinionHe likes CVS a lot fundamentally and also on a valuation basis. The company is vertically integrating. They most recently bought an insurer and also introduced a good partial solution to costly healthcare solutions. The HealthHub gives access to a nurse partitioner who can prescribe medical treatment. There is a long run-way in this regard. They trade at less than 10x earnings with a good dividend. There is some execution risk.
BUY
BUY
October 19, 2020
CVS-N vs. WBA-Q. He has been cautious over the last 3 to 4 years as there were too many drug stores. He would pick CVS-N and has just bought some because of their vertical integration.
Show full opinionHide full opinionCVS-N vs. WBA-Q. He has been cautious over the last 3 to 4 years as there were too many drug stores. He would pick CVS-N and has just bought some because of their vertical integration.
PAST TOP PICK
PAST TOP PICK
September 30, 2020
(A Top Pick Sep 18/19, Down 5%) Integrating vertically. 9x earnings, good dividend, growing at a good rate. Lots of runway ahead. He continues to hold and recommend it.
Show full opinionHide full opinion(A Top Pick Sep 18/19, Down 5%) Integrating vertically. 9x earnings, good dividend, growing at a good rate. Lots of runway ahead. He continues to hold and recommend it.
DON'T BUY
DON'T BUY
September 23, 2020
Struggling with high debt load. Healthcare space and insurance going into the US election, plus Supreme Court nomination, are creating uncertainty. Big boom in telehealth, and this bites into the local CVS option. It's going to be a very competitive business. Challenged. He'd go with UnitedHealth instead.
Struggling with high debt load. Healthcare space and insurance going into the US election, plus Supreme Court nomination, are creating uncertainty. Big boom in telehealth, and this bites into the local CVS option. It's going to be a very competitive business. Challenged. He'd go with UnitedHealth instead.
COMMENT
COMMENT
September 15, 2020
Regulations in the U.S. may affect distribution They recently bought health insurer Aetna. A cheap stock trading at 9x forward earnings. Not sure why the price has come off in the past month, maybe a rotation into momentum. The PBM business (https://en.wikipedia.org/wiki/Pharmacy_benefit_management) always has an overhang with the US government wanting to lower prices. These worries are absorbed into the CVS stock price. Also, CVS has had to pay more for PPE and labour wages, but these costs should abate in time. The current price reflects all these overhangs.
Regulations in the U.S. may affect distribution They recently bought health insurer Aetna. A cheap stock trading at 9x forward earnings. Not sure why the price has come off in the past month, maybe a rotation into momentum. The PBM business (https://en.wikipedia.org/wiki/Pharmacy_benefit_management) always has an overhang with the US government wanting to lower prices. These worries are absorbed into the CVS stock price. Also, CVS has had to pay more for PPE and labour wages, but these costs should abate in time. The current price reflects all these overhangs.
DON'T BUY
DON'T BUY
September 14, 2020
He made a mistake buying this. Doesn't like it. If there's a vaccine, though, it will go higher.
Show full opinionHide full opinionHe made a mistake buying this. Doesn't like it. If there's a vaccine, though, it will go higher.
BUY
BUY
September 9, 2020
The rally has ignored the low growth, high-yield, blue chip stocks like CVS. Tading at less than 10x earnings, with a dividend of about 3.5%. A lot to be said for owning this kind of a stock. Could be a nest egg. Drugstores won't disappear, even with online shopping. Better buy than a pharma. Steady eddy.
Show full opinionHide full opinionThe rally has ignored the low growth, high-yield, blue chip stocks like CVS. Tading at less than 10x earnings, with a dividend of about 3.5%. A lot to be said for owning this kind of a stock. Could be a nest egg. Drugstores won't disappear, even with online shopping. Better buy than a pharma. Steady eddy.
DON'T BUY
DON'T BUY
September 8, 2020
WBA He has owned CVS instead in the past. This and WBA have been hit hard in recent years from a lingering concern over pressure on drug prices in the U.S. So, both have expanded into drug distribution, not just drug retail. The multiple that the market will pay for either has compressed. So, he prefers other stocks in this space, like Loblaws (which owns Shoppers Drug Mart) Drug. Traditionally, drug retailing is a stable business, but in the U.S. the pricing issue remains an overhang.
WBA He has owned CVS instead in the past. This and WBA have been hit hard in recent years from a lingering concern over pressure on drug prices in the U.S. So, both have expanded into drug distribution, not just drug retail. The multiple that the market will pay for either has compressed. So, he prefers other stocks in this space, like Loblaws (which owns Shoppers Drug Mart) Drug. Traditionally, drug retailing is a stable business, but in the U.S. the pricing issue remains an overhang.
PAST TOP PICK
PAST TOP PICK
August 21, 2020
(A Top Pick Sep 17/19, Up 4%) CVS is still a good pick and he would purchase it today. Their business is very strong. Profits remain strong.
Show full opinionHide full opinion(A Top Pick Sep 17/19, Up 4%) CVS is still a good pick and he would purchase it today. Their business is very strong. Profits remain strong.
CVS Health Corp(CVS-N) Rating
Ranking : 5 out of 5
Bullish - Buy Signals / Votes : 18
Neutral - Hold Signals / Votes : 4
Bearish - Sell Signals / Votes : 7
Total Signals / Votes : 29
CVS Health Corp(CVS-N) Frequently Asked Questions
What is CVS Health Corp stock symbol?
CVS Health Corp is a American stock, trading under the symbol CVS-N on the New York Stock Exchange (CVS). It is usually referred to as NYSE:CVS or CVS-N
Is CVS Health Corp a buy or a sell?
In the last year, 29 stock analysts published opinions about CVS-N. 18 analysts recommended to BUY the stock. 7 analysts recommended to SELL the stock. The latest stock analyst recommendation is TOP PICK. Read the latest stock experts' ratings for CVS Health Corp.
Is CVS Health Corp a good investment or a top pick?
CVS Health Corp was recommended as a Top Pick by Stockchase Research on 2020-11-26. Read the latest stock experts ratings for CVS Health Corp.
Why is CVS Health Corp stock dropping?
Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.
Is CVS Health Corp worth watching?
29 stock analysts on Stockchase covered CVS Health Corp In the last year. It is a trending stock that is worth watching.
What is CVS Health Corp stock price?
On 2020-12-02, CVS Health Corp (CVS-N) stock closed at a price of $69.3.
Stockchase Research Editor: Michael O'Reilly CVS, the 2nd largest pharmacy in the US, recently came under pressure with the announcement of Amazon stepping into the pharmacy space. However, now trading at 11x earnings, CVS is good value here -- especially after announcing they are hiring 15,000 staff in Q4 to likely become a mass vaccine distributor. Recent earnings of $1.66 per share beat expectations of $1.34. Management raised guidance of annual 2020 earnings to $7.35-$7.42 per share, above analyst calls for $7.23. It pays a great dividend, backed by a 33% payout ratio. We would buy this with a stop-loss at $57, looking to achieve over $82 -- over 21% potential. Yield 2.96% (Analysts’ price target is $82.43)