61.95 0.00 (0.00%)
After hours: 7:17PM EST
|Bid||61.95 x 900|
|Ask||62.00 x 1800|
|Day's Range||61.17 - 62.35|
|52 Week Range||60.14 - 82.15|
|Beta (3Y Monthly)||1.26|
|PE Ratio (TTM)||20.37|
|Earnings Date||Feb 6, 2019 - Feb 11, 2019|
|Forward Dividend & Yield||2.00 (2.86%)|
|1y Target Est||80.23|
While CVS has big plans for integrating its blockbuster Aetna in 2019, the company lowered its earnings outlook because of continuing problems in its core pharmacy business, stemming from its 2015 acquisition of its long-term care unit Omnicare.
Shares of the drug store plummeting after reporting lower-than-expected results and a disappointing 2019 outlook. This comes after closing a $70 billion dollar acquisition of Aetna in November. Yahoo Finance's Seana Smith joins Jackie DeAngelis with her take.
U.S. stocks climbed during the holiday-shortened week, with the Dow Jones Industrial Average notching its ninth consecutive weekly gain, as investors were optimistic for a trade deal between the U.S. and China. The Dow ended the week up 148.56 points, or 0.6%, at 26031.81--the longest run of weekly gains since a 10-week stretch that ended May 12, 1995. The S&P 500 ended the week 0.6% higher, and the Nasdaq Composite climbed 0.7% on the week.
NEW YORK, NY / ACCESSWIRE / February 22, 2019 / Bronstein, Gewirtz & Grossman, LLC is investigating potential claims on behalf of purchasers of CVS Health Corporation("CVS" or the "Company") ...
Shares of CVS (NYSE:CVS) dropped sharply on Wednesday, Feb. 20, after the pharmacy retailer reported mixed fourth-quarter numbers that included an underwhelming fiscal 2019 profit guide. Investors were disappointed. CVS stock dropped more than 5% in response and now trades just a few percentage points above its five-year low. * 9 High-Growth Stocks to Buy Now for Monster Returns Source: Mike Mozart via Flickr At these levels, CVS stock looks undervalued -- so long as historical trends hold up. The forward earnings multiple is a hair under 9.5. Assuming top-line growth continues to stabilize in the low-single-digit range and margins gradually improve with the acquisition of Aetna, then a single-digit forward P/E multiple is just too low for CVS stock. The problem is that historical trends may not hold up here. The Amazon (NASDAQ:AMZN) threat looms large. Many fear -- and with good reason -- that Amazon is preparing a big launch into the pharmacy space. Such a launch could have a catastrophic impact on CVS. Revenue growth won't stabilize in the low-single-digit range. Margins won't move higher.Instead, CVS will follow in the footsteps of other companies Amazon has disrupted, like Macy's (NYSE:M) and Kohl's (NYSE:KSS). With those two companies, revenue growth slowed -- and even occasionally went negative -- while margins fell by a whole bunch. If that happens to CVS stock, then a single-digit P/E multiple today is warranted, and the stock may actually be due for further weakness ahead.InvestorPlace - Stock Market News, Stock Advice & Trading TipsOverall, the bull thesis on CVS stock hinges on the Amazon threat. Because there's a lot of risk surrounding that threat, there's a lot of uncertainty surrounding the bull thesis on CVS stock. As such, risk-adverse investors would be wise to sit on the sidelines and wait for more clarity. CVS Stock Is Undervalued If This HappensFourth-quarter numbers affirmed one positive trend for CVS: business remains normal for the time being.Amazon hasn't made its big push into the pharmacy market yet, and the numbers at CVS say as much. Fourth quarter revenues rose 12.5%, with a boost from Aetna. They rose roughly 5% on a full-year basis. Pharmacy revenues inched just over 2% higher in the quarter and for the year. Operating margins were largely stable, and the guide implies improvement in margins next year.Numbers like this (low-single-digit revenue growth and gradual margin expansion) could turn into the norm if: 1) Amazon doesn't make a pharmacy push, or 2) Amazon's big pharmacy push is unsuccessful. In such a world, CVS has clear runway for healthy profit growth over the next several years. Indeed, assuming low-single-digit revenue growth and gradual operating margin expansion back to 6.5%, then $8.75 in EPS seems doable by fiscal 2025.Based on a historically average 14 forward multiple, that equates to a fiscal 2024 price target for CVS stock of over $120. Discounted back by 7% per year (three points below my normal 10% discount rate to account for the yield), that equates to a fiscal 2019 price target of over $85.CVS stock currently trades hands at $64. Thus, in a best case scenario where CVS brushes off the Amazon threat, this stock has huge upside potential from here. CVS Stock Is Overvalued If This HappensAlthough fourth-quarter numbers were good, the bear argument is that the numbers here are only temporarily good. Eventually, Amazon will launch its own pharmacy business -- and do to traditional pharmacy retailers over the next several years what it did to traditional apparel retailers over the past several years.In that scenario, revenue growth at CVS will slow significantly. CVS will be lucky to grow revenues by 0-1% per year. More importantly, margins will be killed. Many traditional retailers saw their operating margins sliced in half as a result of low-priced Amazon competition. While such a dramatic cut may not happen in the pharmacy industry given less competition, big margin drops will happen if Amazon successfully steals share in this market.If revenue growth slows to barely above zero and margins drop a few points, then CVS may only be looking at $5 in EPS by fiscal 2025. Following the same math above, that equates to a fiscal 2019 price target of under $50 for CVS stock. Thus, in a worst case scenario where CVS is adversely impacted by the Amazon threat, this stock has sizable downside potential from here. Bottom Line on CVS StockCVS stock is undervalued here if -- and only if -- the company can successfully navigate through the upcoming Amazon threat without materially and adversely impacting profits. * 7 Restaurant Stocks to Watch in 2019 Given what happened in traditional retail, that seems unlikely. As such, the bull thesis on CVS stock lacks clarity at the current moment. So long as this remains true, the stock will struggle to hold onto gains.As of this writing, Luke Lango was long AMZN and M. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 6 Hot Stocks For Goldman Sachs' New Investing Strategy * 10 Smart Money Stocks to Buy Now * The 10 Best Cheap Stocks to Buy Right Now Compare Brokers The post CVS Stock Is Undervalued, but the Amazon Risk Looms Large appeared first on InvestorPlace.
NEW YORK , Feb. 21, 2019 /PRNewswire/ -- Pomerantz LLP is investigating claims on behalf of investors of CVS Health Corporation ("CVS" or the "Company") (NYSE: CVS). Such investors ...
NEW YORK, NY / ACCESSWIRE / February 21, 2019 / Bronstein, Gewirtz & Grossman, LLC is investigating potential claims on behalf of purchasers of CVS Health Corporation ("CVS" or the "Company") ...
Investing.com - The Dow ended its three-day winning streak Thursday as downbeat economic data raised concerns about the strength of the U.S. economy, while U.S.-China trade talks remained in the spotlight.
Another day, another gain, though they're increasingly tepid. The S&P 500 mustered a 0.18% advance yesterday, while the Nasdaq barely closed out in the black.CVS Health (NYSE:CVS) was the biggest drag. Shares of the drugstore chain fell more than 8% in response to a disappointing 2019 outlook.Fortunately, there were enough names like Freeport-McMoRan (NYSE:FCX) and PG&E (NYSE:PCG) to keep the broad market out of the red. Freeport-McMoRan gained 2.1% yesterday, making good on the recent recovery hints the stock has dropped. PG&E, meanwhile, was up 2.7% on Wednesday as investors continue to have hope for life after bankruptcy. Citigroup upgraded it to a "buy" on Tuesday, anticipating its bankruptcy court proceeding would treat the company more gently than first presumed.InvestorPlace - Stock Market News, Stock Advice & Trading TipsHeaded into Thursday's session, the stock charts of Intercontinental Exchange (NYSE:ICE), Western Digital (NASDAQ:WDC) and H & R Block (NYSE:HRB) are of the most interest. Curiously, most of the best budding prospects are on the bearish side of the fence. Western Digital (WDC)Just a few weeks ago, Western Digital was untouchable. The computer storage industry was in trouble thanks to too much supply and too little demand. * 7 Healthy Dividend Stocks to Buy for Extra Stability Much has changed in the meantime. The rhetoric doesn't suggest the foreseeable future will be more profitable than the recent past, but the chart says fresh money is being put back into the stock. There's one last hurdle to clear, but there's enough bullish momentum to get that rebound effort going in earnest. Click to Enlarge • The big technical ceiling is around $49.25, plotted with a blue dashed line on the daily chart, where WDC has topped out a few times since November.• Beckoning the stock higher from its current value is the gap that was left behind in October. The upper edge of that range is marked with a yellow line. Broadly speaking, the market doesn't leave gaps unfilled.• Zooming out to the weekly chart we can see the December low around $34.70 lined up with 2016's low around the same. The bulls may have already planned a recovery effort here anyway, regardless of the rhetoric. Intercontinental Exchange (ICE)If Intercontinental Exchange rings a bell, there's a reason. It's one of the stock charts we've revisited multiple times in recent weeks, highlighting the fact that it's increasingly toying with a breakdown.That's yet to happen. In fact, the couple of times since it's been on our radar it looked like it was finally going to break down, it recovers. The tide, however, may have just flipped into a net-bearish position. One more floor needs to break first before the deal is sealed. Click to Enlarge• The last-ditch support line is right around $72.00, plotted with a yellow dashed line on both stock charts.• The weekly chart shows, with just a cursory glance, a slowdown of 2017's and 2018's momentum, but the selling doesn't appear to be unmanageable yet. Take a closer look though, and you'll see the purple 50-day moving average line just fell below the white 200-day average line… the proverbial 'death cross.'• Bolstering the bearish interpretation here is the fact that peer and rival CME Group (NASDAQ:CME) is behaving similarly. When stocks from the same group start to mirror one another, it's often part of a sweeping tidal shift. H & R Block (HRB)One would think H & R Block shares would thrive at a time of year when taxes are on everybody's mind. And, we've seen occasional flashes of bullish brilliance during the early parts of the year. None of them have really gone anywhere though, and of late, this has actually been a bearish time of year. Since 2016, February and March have been losers more often than not.HRB stock is knocking on the door of making 2019 the third February/March loser in the past four years. Click to Enlarge • The make-or-break line in the sand is $23.60, plotted with a blue dashed line on both stock charts. It's starting to test that floor in the shadow of a multi-year streak of lower highs.• If the breakdown does end up taking hold, the next most plausible floor is the 2016/2017 lows just under $20.00, marked with a red dashed line.• Still, H & R Block shares have been amazingly erratic, and unpredictable. Any trade must be monitored daily.As of this writing, James Brumley did not hold a position in any of the aforementioned securities. You can learn more about James at his site, jamesbrumley.com, or follow him on Twitter, at @jbrumley. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Smart Money Stocks to Buy Now * The 10 Best Cheap Stocks to Buy Right Now * 7 Restaurant Stocks to Watch in 2019 Compare Brokers The post 3 Big Stock Charts for Thursday: H & R Block, Western Digital and Intercontinental Exchange appeared first on InvestorPlace.
CVS Health Corp has contacted banks to explore the sale of its Drogaria Onofre chain in Brazil, a newspaper reported on Thursday, which could result in the U.S.-based pharmacy chain's exit from Latin America's largest country. CVS had purchased Drogaria Onofre in 2013 for 700 million reais ($187 million). In 2012, according to Brazilian pharmacy association Abrafarma, the chain was the eighth largest in Brazil, but has since fallen out of the top 20.
Gov. Roy Cooper will make an economic development announcement today in High Point that according to sources is likely to involve a major expansion by health insurer Aetna. The governor is expected to announce the addition of more than 300 white-collar jobs over two years as the health insurer, now a subsidiary of CVS Health (NYSE: CVS), expands its call center operations at 4050 Piedmont Parkway in Piedmont Centre, according to sources. Loren Hill, president of the High Point Economic Development Corp., acknowledged that the governor will be making an economic development announcement at 1 p.m. at City Hall, but declined to comment on any specifics as to the company, the number of jobs or the expected wages. Aetna is one of the largest tenants in the 220,000-square-foot building at 4050 Piedmont Parkway.
Asian stock markets were little-changed Thursday following a listless day on Wall Street ahead of U.S.-Chinese negotiations aimed at ending a tariff battle. Tokyo's Nikkei 225 index lost 0.1 percent to ...
The Woonsocket, R.I.-based company, which in November completed its nearly $70 billion acquisition of insurer Aetna Inc., said that it was taking rapid steps to address the problems, including a cost-cutting effort, and that its ambitious deal positioned it for long-term growth. For 2019, the company said it was projecting adjusted earnings per share of $6.68 to $6.88, compared with analysts’ estimates of $7.41 a share, as polled by Refinitiv. CVS said its results are being hurt by factors including smaller benefits from the rollout of new generic drugs and the performance of Omnicare, its long-term-care pharmacy business.
U.S. stocks closed near the break-even line on Wednesday after the Federal Reserve released the minutes for its January meeting in the afternoon. The minutes were largely consistent with recent public comments made by Federal Open Market Committee members. Markets closed flat as the Fed minutes came largely as expected.
shares closed 8.1% lower Wednesday at $64.22, after it posted stronger-than-expected fourth-quarter earnings but issued 2019 profit guidance that fell far short of Wall Street forecasts linked to "significant additional deterioration" in its long-term care business. CVS Health said adjusted earnings for the three months ending in December came in at $2.14 per share, up 11.5% from the same period last year and firmly ahead of the Street consensus of $2.05 per share. Looking into 2019, CVS said it sees cash flow from operations in the range of $9.8 billion to $10.3 billion and full-year GAAP earnings of between $4.88 and $5.08 per share, or $6.68 to $6.88 on an adjusted basis, well below the Refinitiv forecast of $7.41 per share and the 2018 tally of $7.08 per share.
NEW YORK, NY / ACCESSWIRE / February 20, 2019 / Bronstein, Gewirtz & Grossman, LLC is investigating potential claims on behalf of purchasers of CVS Health Corporation("CVS" or the "Company") ...
The Dow Jones Industrial Average finished higher Wednesday following the release of minutes from the January meeting of the Federal Reserve's rate-setting committee. posted stronger-than-expected fourth-quarter earnings but its 2019 profit guidance fell far short of Wall Street forecasts. said it was replacing its general counsel Dane Butswinkas just two months after he joined the electric carmaker.
"After the payment of our shareholder dividend, capital retention to support our insurance operation and growth capital expenditures of $2.3 billion to $2.6 billion, we will use the remaining cash available to continue to pay down debt," CFO Eva Boratto told analysts. It's no secret that this is largely due to the blockbuster $68 billion deal for major insurer Aetna. The drag of debt payments on this acquisition is a big question mark for 2019 as the insurer seeks integration into the broader CVS brand.
U.S. stocks ended in the green as investors digested minutes detailing the deliberations from the Federal Open Market Committee’s latest meeting.
The Federal Reserve remains "patient" and the stock market remains up -- for now. Investors are looking for a reason to book some profits into possible resistance, but can't decide if the Fed report is reason enough to do it. Other than that, we have a few top stock trades to watch for Thursday. CVS Health (CVS) Click to EnlargeDespite beating on earnings estimates, shares of CVS Health (NYSE:CVS) are lower after management's less-than-thrilling outlook.InvestorPlace - Stock Market News, Stock Advice & Trading TipsFortunately, CVS's charts are relatively straightforward. Sellers line up near $80 and buyers get in line in the low $60s. So far, the low for this year is near $62.50. There's a bit of trend support nearby as well (blue line) at $63. * The 10 Best Cheap Stocks to Buy Right Now However, should $62 give way, We could see that $58 to $60 level CVS stock traded at last April. I'm not a dip-buyer in CVS, but these are the levels for bulls to keep in mind. Southwest Airlines (LUV) Click to EnlargeHigher-than-usual grounding of its fleet is causing concern for investors, who sold Southwest Airlines (NYSE:LUV) lower by 5% on Wednesday.Wednesday's lows hit the 50% retracement from Southwest's 52-week range. In short, it's not easy to define its trading setup; shares are smack-dab in the middle of its annual range and they have no real trend to speak of. Those looking to buy will need to see it stay over the 200-day moving average. While this level hasn't played a huge role over the past few years, it did on Wednesday.Below, it opens the floodgates down to the 50-day moving average, a decline of more than 5.5%. Ultimately, I would rather pass on Southwest unless it gets down toward $50. Near that price, investors show it plenty of "LUV." Invintae (NVTA) Click to EnlargeMan, did Invintae (NASDAQ:NVTA) blow out the numbers or what? The company's quarterly results were wildly impressive and Wall Street is rewarding investors on Wednesday, up almost 14% after an already huge rally.At the beginning of the month, I noted the stock's breakout over $15 and said it could run to $18 if the bulls maintain momentum. $3.75 per share later and the stock is logging new highs. It's hard to chase here, but the story is great and if we get a pullback, bulls may consider buying this one. * 8 Cheap Stocks That Cost Less Than $10 Will we see a push toward $20 before that happens? Maybe. If so, look for $18 to be support on a pullback. If we pullback first, look for the breakout over $16.75 to $17 to act as support. Henry Schein (HSIC) Click to EnlargeShares of Henry Schein (NYSE:HSIC) used to be very consistent, but that hasn't been the case over the last few years. Despite beating earnings estimates on Wednesday, shares fell over 5% on the day.Down near $57 to $56.50, dip buyers may find the risk/reward attractive. But this one is lagging any sort of momentum or support near current levels. Over $61 -- with all three major moving averages near $60.50 -- and it looks better. Otherwise, let's wait for lower. Baidu (BIDU) Click to EnlargeChinese stocks have been on the move lately and Baidu (NASDAQ:BIDU) has been coming back to live. Honestly, nibbling right here isn't a bad setup with investors able to pull the plug on a close below the 50-day moving average. * 7 Restaurant Stocks to Watch in 2019 However, a push over the $175 level could trigger a move to $180. Should BIDU push through this mark, a rally up to $195 could ultimately be in the cards.Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, he was long NVTA. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * The 10 Best Cheap Stocks to Buy Right Now * 5 Stocks Under $5 to Buy Before They Soar * 5 Consumer Stocks to Cash Out Of Compare Brokers The post 5 Top Stock Trades for Thursday: CVS, NVTA and HSIC Earnings appeared first on InvestorPlace.
The lowered forecast raised questions on Wall Street about the company's ability to succeed with its $69 billion acquisition of health insurer Aetna, which closed last year. Chief Executive Larry Menlo said the proposed rule, which the Trump administration plans to put in place on Jan. 1, 2020, would force CVS to raise premiums in Medicare prescription drug plans if implemented. Menlo said in an interview that there are practical issues with implementing the proposal.