How CVS Health Corporation (NYSE:CVS) Could Add Value To Your Portfolio
As an investor, I look for investments which do not compromise one fundamental factor for another. By this I mean, I look at stocks holistically, from their financial health to their future outlook. In the case of CVS Health Corporation (NYSE:CVS), it is a notable dividend payer that has been a rockstar for income investors, currently trading at an attractive share price. In the following section, I expand a bit more on these key aspects. For those interested in digging a bit deeper into my commentary, read the full report on CVS Health here.
Undervalued established dividend payer
CVS's shares are now trading at a price below its true value based on its discounted cash flows, indicating a relatively pessimistic market sentiment. This mispricing gives investors the opportunity to buy into the stock at a cheap price compared to the value they will be receiving, should analysts' consensus forecast growth be correct. Also, relative to the rest of its peers with similar levels of earnings, CVS's share price is trading below the group's average. This supports the theory that CVS is potentially underpriced.
Income investors would also be happy to know that CVS is a great dividend company, with a current yield standing at 3.3%. CVS has also been regularly increasing its dividend payments to shareholders over the past decade.
Next Steps:
For CVS Health, there are three pertinent factors you should look at:
Future Outlook: What are well-informed industry analysts predicting for CVS’s future growth? Take a look at our free research report of analyst consensus for CVS’s outlook.
Historical Performance: What has CVS's returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of CVS? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
