The Zacks Analyst Blog Highlights: CVS Health, Aetna, PetMed Express, Align Technology and Myriad Genetics
For Immediate Release
Chicago, IL – Dec 5, 2017 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include CVS Health Corporation CVS, Aetna Inc. AET, PetMed Express, Inc. PETS, Align Technology, Inc. ALGN and Myriad Genetics, Inc. MYGN.
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
Here are highlights from Monday’s Analyst Blog:
CVS Health's Aetna Buy to Change Healthcare Landscape
A momentous healthcare consolidation has commenced with CVS Health Corporation deciding to acquire the U.S. health insurance giant Aetna Inc. for a colossal sum of $69 billion. Per a Yahoo Finance article by Julia La Roche, this one valuable deal could reshape the landscape of American health care.
Following this news, shares of the company have been slightly down (about 0.23%) in pre-market trading on Dec 4.
Deal Details
On Dec 3, CVS Health announced that under a definitive merger agreement, the company will acquire all outstanding shares of Aetna in cash and stock for approximately $207 per share or almost $69 billion (considering a rough estimate of Aetna's debt, the total transaction value is calculated at $77 billion). More specifically, Aetna’s shareholders will receive $145.00 per share in cash and 0.8378 CVS Health shares for each Aetna share.
CVS Health noted that the terms of this merger agreement have been unanimously approved by the respective board of directors of the two companies involved.
Post the close of the transaction, Aetna’s shareholders will own nearly 22% of the combined entity while CVS Health shareholders will acquire the rest. The company expects the takeover to complete in the second half of 2018, subject to approval by both the company’s shareholders, regulatory approvals as well as fulfillment of certain other customary closing conditions.
Synergy Benefit Forecast
On the deal’s successful completion, CVS Health expects to earn $750 million from near-term synergies with low to mid-single digit accretion in the second year post the transaction’s closure.
Per the company, shareholders can look forward to several outcomes with respect to near-term synergy including enhanced competitive positioning and a new combined platform that might redefine access to high-quality care at low cost, substantially accelerating the consolidated business’ growth. The acquirer is highly optimistic about this merger, slated to combine the analytics of Aetna with its ‘touch of humanity’ on the health care turf and help create a robust platform to serve individuals better.
Per CVS Health, this merger in the long term has great potential to deliver a significant incremental value as it is likely to spur development of new products and generate new-growth opportunities as a uniquely integrated retailer, pharmacy benefits manager and a far-sighted health planner.
Share Price Comparison
Shares of CVS Health have outperformed the broader industry over the past three months. The stock has dropped 3.5%, comparing favorably with the industry’s 9.1% decline during the same time frame. Its current value is however, lower than the S&P 500's 6.8% gain.
Zacks Rank & Key Picks
CVS Health carries a Zacks Rank #3 (Hold). Some better-ranked medical stocks are PetMed Express, Inc., Align Technology, Inc. and Myriad Genetics, Inc., each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
PetMed has a long-term expected earnings growth rate of 10%. The stock has rallied roughly 73.5% over a year.
Align Technologyhas a long-term expected earnings growth rate of 28.9%. The stock has gained 170.3% in a year.
Myriad Genetics has a long-term expected earnings growth rate of 15%. The stock has soared 97.2% in a year.
Zacks’ Best Private Investment Ideas
While we are happy to share many articles like this on the website, our best recommendations and most in-depth research are not available to the public.
Starting today, for the next month, you can follow all Zacks' private buys and sells in real time. Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors.
Click here for Zacks' private trades >>
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1 Stock of the Day pick for free.
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has nearly tripled the market from 1988 through 2015. Its average gain has been a stellar +26% per year.See these high-potential stocks free >>.
Follow us on Twitter: https://twitter.com/zacksresearch
Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
https://www.zacks.com/
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
PetMed Express, Inc. (PETS) : Free Stock Analysis Report
Myriad Genetics, Inc. (MYGN) : Free Stock Analysis Report
Aetna Inc. (AET) : Free Stock Analysis Report
Align Technology, Inc. (ALGN) : Free Stock Analysis Report
CVS Health Corporation (CVS) : Free Stock Analysis Report
To read this article on Zacks.com click here.
