A company that sells drugs to Americans...
CVS Health Corp. (NYSE:CVS)
Back in October 2017, Darren Sissons commented on CVS Health Corp. and noted “In many cases this is a Trump Administration story. Drug stocks have come off significantly, along with the companies that sell drugs to the American consumer. There has been a recovery in a lot of the drug stocks. Ultimately, this is a story of drug price inflation and the attempts of the government to rein costs in. Longer-term, it is an interesting story, but a very thin margin business. If you get a small drop in profitability, stocks tend to come back significantly.”
The stock has a hard time overcoming the competitive threats but it definetly could benefit from a Trump Bump.
A top pick again in June 2018…
It was chosen again as a top pick in June by Paul Harris who noted “Trading at 9x earnings and paying a 3.1% dividend. The success of their large Aetna purchase (which still needs approval) will depend on how well CVS integrates it, which is risky. CVS is about integration: long-term care, pharmacy and home fusion. This integration can propel higher margins.” (Analysts’ price target: $86.81)
Happy trading !