|Bid||63.93 x 3100|
|Ask||64.04 x 800|
|Day's Range||63.16 - 64.72|
|52 Week Range||51.72 - 82.15|
|Beta (3Y Monthly)||1.00|
|PE Ratio (TTM)||17.55|
|Forward Dividend & Yield||2.00 (3.13%)|
|1y Target Est||N/A|
EVP & CFO of Cvs Health Corp (30-Year Financial, Insider Trades) Eva C Boratto (insider trades) sold 8,130 shares of CVS on 09/12/2019 at an average price of $65 a share. Continue reading...
Pharmaceutical companies and middlemen known as pharmacy benefit managers are generally at odds in a battle over drug prices. So, who is actually responsible for high prescription prices?
Income in the bond market is rapidly disappearing, and that's a weird concept to try and wrap your head around.For decades -- centuries, even -- investors around the world have bought fixed-income instruments for relatively risk-free income. The concept is simple. You give money to a government or corporate entity who turns around and pays you interest for lending that money to compensate for risk and time.But this simple concept has been flipped on its head recently. Specifically, the "interest" part of the above fixed-income equation has gone out the window. Consider the following:InvestorPlace - Stock Market News, Stock Advice & Trading Tips * The 10-year Treasury yield is flirting with all-time lows around 1.8%. * The 30-year Treasury yield has plunged to all-time lows around 2.2%. * About one-third of tradeable bonds around the world now have negative yields, amounting to $17 trillion in negative-yielding debt. * The yield curves are entirely negative in countries like Germany, Denmark and the Netherlands.In other words, across the world, the income part of the fixed-income equation is rapidly disappearing. Weird, right?Despite this, U.S. equities are still giving investors income. That is, the S&P 500's dividend yield presently hovers around 2% -- significantly above all-time low levels (roughly 1% in 2000) and also on the upper end of where the S&P 500 dividend yield has hovered over the past 20 years.Big picture, then, while the fixed income market is suffering from disappearing income, stocks are still paying good income. * 7 Discount Retail Stocks to Buy for a Recession The implication? Buy stable dividend stocks which pay more than any other relatively risk-free bond in the world will. As investors grow tired of not even beating inflation by buying a 10-year Treasury note, they will inevitably pile into stocks which: 1) have much higher yields, and 2) have a history of steady and consistent dividend hikes.Without further ado, let's take a look at five dividend stocks that fit this description. Dividend Stocks to Buy: AT&T (T)Source: Jonathan Weiss / Shutterstock.com Dividend Yield: 5.3%Dividend History: The dividend has consistently increased over the past 34 years.At the top of this list, we have a stock which many consider the blue-chip dividend king: telecom giant AT&T (NYSE:T).AT&T has everything investors are looking for in a stable, income-paying stock. Big yield? Check. The stock yields 5.3%. History of dividend hikes? Check. AT&T has consistently hiked its dividend over the past three decades.Stable operations? Check. AT&T provides telecom services which U.S. consumers have become exceptionally dependent on -- indeed, the internet and wireless services which AT&T provides may be the most important utilities outside of water, food and electricity. Healthy catalysts on the horizon? Also, check. Next year, AT&T: 1) is launching new streaming services which should help offset cord-cutting weakness, and 2) will benefit from the mainstream and widespread deployment of 5G infrastructure and devices.AT&T stock is the quintessential stable dividend stock to buy at the current moment. American Electric Power (AEP)Source: Casimiro PT / Shutterstock.com Dividend Yield: 2.9%Dividend History: The dividend has consistently increased over the past six years.Next up, we have a utility giant that is best known for its stability and resiliency: electricity services provider American Electric Power (NYSE:AEP).Relative to other "big dividend stocks," AEP's yield isn't that big. It sits at just 2.9%. But, there are three things to note here. First, that 2.9% yield still smashes the 1.8% 10-year Treasury yield. Two, American Electric Power has a long track record of consistent dividend hikes that dates back at least six years, a stretch during which the dividend increased 100%. Three, American Electric Power has an equally long track record of consistent and stable revenue and profit growth, which has powered consistent gains in AEP stock over the past decade. * 10 Battered Tech Stocks to Buy Now As such, what AEP lacks in yield, it makes up for in operational consistency and stability. Consequently, the best way to look at AEP stock is as the best "stable" stock to buy. It just so happens to yield almost 3%, too, which is an added bonus. Qualcomm (QCOM)Source: JHVEPhoto / Shutterstock.com Dividend Yield: 3.1%Dividend History: The dividend has consistently increased over the past eight years.Third, we have a global chip giant that appears to be on the verge of finding its winning stride again -- Qualcomm (NASDAQ:QCOM).Unlike AT&T and American Electric Power, Qualcomm is not traditionally seen as an icon of stability. Just look at a five-year chart of QCOM stock to see why. But, most of the turbulence in QCOM stock over the past five years has been driven by operational noise -- namely, a big legal battle with their largest customer, Apple (NASDAQ:AAPL). That legal battle is now over, and it ended in a favorable outcome for Qualcomm.Consequently, looking in the rear-view mirror here is the wrong way to look at QCOM stock. It's not about what has happened. It's about what will happen. What will happen is good stuff. Qualcomm has locked in Apple as a customer for the next several years. At the same time, 5G phones are launching next year, and it appears pretty much every smartphone provider is leaning into Qualcomm to provide the infrastructure for those 5G phones. As such, Qualcomm will find itself as a big beneficiary of the 5G tailwind. This tailwind should last for several years, meaning that Qualcomm should be in winning stride for the foreseeable future.Ahead of the company regaining its winning stride, the stock still yields an impressive 3.1%. Thus, not only does QCOM stock have a compelling multi-year bull thesis, but the stock is also paying investors to buy into that compelling bull thesis. It's a win-win situation that ultimately gives QCOM the nod as a stable dividend stock to buy here and now. CVS (CVS)Source: Roman Tiraspolsky / Shutterstock.com Dividend Yield: 3.1%Dividend History: CVS last increased its dividend payout in 2017.Fourth, we have an undervalued, stable stock that is in the midst of a potentially huge breakout -- retail pharmacy giant CVS (NYSE:CVS).It's been a rough few years for CVS stock. On the retail pharmacy side, increased competition has simultaneously pressured current sales trends and depressed investor sentiment regarding future sales trends. On the pharmacy benefit manager side, legislation has similarly pressured sales and profits.Consequently, by mid-2019, CVS stock had dropped to $50 -- the stock's lowest level since early 2013 -- and was trading at under 8x forward earnings.Since then, retail sales trends have improved as CVS has refreshed stores and expanded omni-channel capabilities to overstep the competition. Such improvements should persist as the company expands a local healthcare program which has potential to dramatically improve core operational performance trends. At the same time, the White House has scrapped a bill which would've been disastrous for PBMs. And now the outlook on that side of the business is also improving significantly. * 10 Stocks to Sell in Market-Cursed September In response to these positive developments, CVS stock has rallied nearly 20% over the past three months. This rally is just getting started. The stock is still cheap, the yield is still big, the outlook is still improving and the upward momentum is very real. As such, CVS stock appears to be in the first few innings of a huge breakout. Target (TGT)Source: jejim / Shutterstock.com Yield: 2.4%Dividend History: The dividend has consistently increased over the past 51 years.Last, but not least, we have a blue-chip retail giant that is absolutely on fire today: Target (NYSE:TGT).The story at Target is pretty simple. A few years back, the mainstream emergence and adoption of e-commerce caused a traffic exodus out of Target stores. For a short period of time, Target struggled. Then, Target adapted. It built out a big e-commerce operation, refreshed stores to be more tech-savvy, built out omni-channel capabilities, expanded in-store and online offerings and much more.In a nutshell, Target became the quintessential, modern omni-channel retailer that leveraged technology to optimize customer convenience in every way possible.It worked. Over the past few years, Target has fired off its best numbers in a decade. We are talking decade-best sales growth, comparable sales growth, online sales growth and traffic growth. At the same time, margins have been largely stable, so profit growth has been equally robust. TGT stock has naturally rallied big in response to this operational excellence.This rally is far from over. Target has optimally positioned itself so that -- so long as the U.S. consumer remains healthy -- Target will continue to report impressive numbers. The stock isn't terribly expensive at all (17-times forward earnings), the yield remains big (2.4%) and TGT stock has very healthy upward momentum.TGT stock is a stable dividend stock which should stay in rally mode for the foreseeable future.As of this writing, Luke Lango was long T, QCOM, and CVS. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Big IPO Stocks From 2019 to Watch * 7 Discount Retail Stocks to Buy for a Recession * 7 Stocks to Buy Benefiting From Millennial Money The post 5 Stable Dividend Stocks to Buy as Fixed Income Vanishes appeared first on InvestorPlace.
Panelists at our Trends & Innovations in Health Benefits event point to improvements in controlling the cost of care, but challenges on the horizon.
The sector has lagged behind the broader market, partly because of concern that the government could act to rein in drug prices.
We looked at the charts of CVS Health Corp. last week, but with Deutsche Bank recommending it today as its top pick we will visit it again this Thursday morning as it's the Real Money 'Stock of the Day'. In this daily bar chart of CVS, below, we can see that prices have crept higher the past week and trading volume looks like it has increased. The On-Balance-Volume (OBV) line has remained steady and the Moving Average Convergence Divergence (MACD) oscillator has moved to a new outright buy signal.
Analysts at Deutsche Bank call the company its 'top pick' in the managed care, drug supply and beneficiary technology space.
It's a rare moment when a losing call on volatile Rite Aid (NYSE:RAD) makes you a 28% profit. Let me explain: Back on Aug.7, I made a ridiculous statement that buying RAD stock for a short-term bet wasn't as crazy as initial looks might suggest. However, the markets made my bullishness look incredibly foolish very quickly.Source: Ken Wolter / Shutterstock.com Near mid-August, the embattled pharmacy retailer announced an executive shakeup. Former CEO John Standley stepped down from the top post. In his place came Heyward Donigan, who previously served as CEO for Sapphire Digital. During her time leading the company, she led the organization to record growth and consumer engagement.Under ordinary circumstances, Donigan would be a welcome lift to Rite Aid stock. After all, the once-powerful pharmacy retailer has massive competition. We're not just talking about peers, such as CVS Health (NYSE:CVS) or Walgreens Boots Alliance (NASDAQ:WBA). Instead, the RAD stock price is under pressure from disruptive names like Amazon (NASDAQ:AMZN).InvestorPlace - Stock Market News, Stock Advice & Trading TipsIn that context, perhaps the fallout in shares wasn't surprising. When Rite Aid announced Donigan as CEO, the RAD stock price was hovering just above $7. Just a few days later, the equity hit a multi-year low of $5.27. With that, my speculative thesis blew up in my face. * 10 Stocks to Sell in Market-Cursed September But before the rounds of "I told you so's" could flood my inbox, Rite Aid stock started to turn around. From Aug. 27, the equity veritably skyrocketed, gaining nearly 75% to the close of Sept. 10. That made me look less foolish, for which I'm grateful.But what about RAD stock? Is there still an opportunity here after such a mercurial rise? Millennials Hold the Key to the RAD Stock PriceLike most market investments, the answer depends on millennials. As the largest generation in the workforce, this demographic essentially enjoys the China narrative: they're emerging as a true political and economic force, and there are a lot of them.Better yet, millennials bring many potential positives for Rite Aid stock and the broader pharmacy business. For one thing, their sheer numbers bring robust dollars into the mix. More significantly, 45% of millennials prefer using over-the-counter drugs versus depending on a doctor for a prescription.This is one stat for which Donigan and her team must focus on. She has a clear opportunity to convert visitors to sales.And they will come. Based on the Amazon Counter deal that I referenced in last month's story, this will incentivize a new breed of consumers to visit Rite Aid stores. I wrote that "Amazon shoppers are young, tech savvy, and make serious bank." This is exactly the type of demo that you need to get RAD stock out of its funk.Unfortunately, some bad news exists for Rite Aid stock as well. According to MarketingCharts.com, millennials are the most price-sensitive generation for consumer-packaged goods. For instance, millennials more so than any other generation are likely to buy over-the-counter meds on sale as opposed to their preferred brands.Obviously, the easy answer is to pump out some discounts to attract and secure millennial shoppers. But nothing associated with RAD stock is easy. Primarily, the company does not have the margins to play the discount game for a prolonged period.Therefore, Rite Aid stock is a race: can management attract and retain enough millennial shoppers to justify an initial cut to margins? This is not a believable route for many investors, and that's why they dumped shares. Right Now, It's About Tactics Over StrategyGiven the recent and dramatic changes in the RAD stock price, we have several ways to approach shares. First, if you made that 75% profit that I referenced earlier, congratulations! Now, it's time to dump out.Even if you made the smaller 28% profit, it's time to sell. Certainly, you don't want to get greedy with a volatile investment like Rite Aid stock.On the other hand, if you're approaching shares now, I'd wait. For starters, it's unlikely that RAD stock will continue to make double-digit jumps. Second, some stats, like the excessive institutional ownership worries me in this present context. If insiders panic, RAD will plummet faster than you can hit the "sell" button.Third, Rite Aid is scheduled to release their second quarter of fiscal 2020 earnings report near September end. I don't want to have excessive exposure here, especially since RAD stock can go anywhere following this report.But after that dust clears, the pharmacy giant might get interesting again. As I said, it really depends on whether Donigan can convert millennials. It's a herculean task, to be sure. But the opportunity is there, which represents the longer-term speculative case for Rite Aid stock.As of this writing, Josh Enomoto did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks to Sell in Market-Cursed September * 7 of the Worst IPO Stocks in 2019 * 7 Best Stocks That Crushed It This Earnings Season The post For Rite Aid Stock, Everything Depends on Millennials appeared first on InvestorPlace.
As expected, August was fairly slow for IPOs, which happens every year during the summer holidays.There were only seven deals in the month and all but one rose in value. Among the top performers were Inmode (NASDAQ:INMD), up 87% and Kura Sushi USA (NASDAQ:KRUS), which gained 60%.Which company lost money? It was Sundial Growers (NASDAQ:SNDL), which dropped 30% from its debut.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Stocks to Sell in Market-Cursed September So what should you expect for upcoming IPOs in September? Well, as should be no surprise, there will continue to be offerings from red-hot areas like cloud software operators, and there will be some deals from traditional companies. First: What's an IPO, Anyway?For many people, IPOs are kind of a mystery. After all, it does seem kind of strange for a company's stock to zoom on the first day of trading, right?Here's a quick explanation of IPOs: An IPO is when a company issues its shares to the public on an exchange, such as the Nasdaq Composite or New York Stock Exchange (NYSE). Often this process results in raising a large amount of money, say over $100 million.Getting to this point is not easy. Upcoming IPOs need to have audited books, a strong financial infrastructure and an experienced management team. There will also need to be advisors -- called investment bankers or underwriters -- who will provide guidance through the process. This involves putting together a disclosure document called an S-1, and having a roadshow, in which management makes presentations to investors.Advisors will generally undervalue the shares, allowing for the pop. It's a way to reward investors. Yet these investors are usually institutions, hedge funds, and wealthy people.Yes, it's kind of unfair, but the system has seen little change over the decades. Despite this, individual investors have still made lots of money from IPOs like Amazon (NASDAQ:AMZN), Alphabet (NASDAQ:GOOGL, NASDAQ:GOOG) and Facebook (NASDAQ:FB) -- regardless of if they got the shares at the offering price.Let's take a look at the seven upcoming IPOs for the month: SmileDirectClub (SDC)Source: Thamyris Salgueiro / Shutterstock.com Among the upcoming IPOs, SmileDirectClub might garner the most interest. This company is the pioneer of the direct-to-consumer market for teeth straightening systems. SmileDirectClub leverages innovative teledentistry technology and has a fully integrated platform.While a orthodontist may charge $5,000 to $8,000 for a procedure, SmileDirectClub charges generally below $2,000. The company also has a financing program and reimbursement relationships with UnitedHealth Group (NYSE:UNH) and CVS Health (NYSE:CVS).From fiscal 2017 to 2019, revenues soared nearly 200% to $423.2 million. And since 2014, the company has served over 700,000 customers. * 7 Tech ETFs to Invest In Now The SmileDirectClub IPO is expected to involve the issuance of 58.5 million shares at a range of $19 to $22. The lead underwriters include JPMorgan (NYSE:JPM), Bank of America (NYSE:BAC), Jefferies, UBS (NYSE:UBS) and Credit Suisse (NYSE:CS). The shares will be listed on the Nasdaq under the ticker of SDC. Cloudflare (NET)Source: Shutterstock Cloudflare develops technologies to deliver highly robust and secure internet connectivity. The company is trying to disrupt the traditional approaches, which rely heavily on legacy on-premise software.From 2016 to 2018, revenues have gone from $84.8 million to $192.7 million. Keep in mind that the company counts 10% of the Fortune 1,000 as paying customers. In fact, about 18% of the top 10,000 websites use at least one product from Cloudflare.As for the upcoming IPO, the company expects to offer 35 million shares at a range of $10 to $12 on the NYSE (the proposed ticker is NET). The lead underwriters are Goldman Sachs (NYSE:GS), Morgan Stanley (NYSE:MS), JPM, Jefferies, Wells Fargo (NYSE:WFC) and RBC. Datadog (DDOG)Source: Shutterstock For upcoming IPOs, Datadog is likely to be red-hot. The company is a developer of technologies for monitoring and analytics for cloud systems. Some of the benefits include IT migration, collaboration, the acceleration of time-to-market for apps and better problem resolution.Founded in 2010, Datadog has been highly capital-efficient. It has raised $92 million - and still has $63.6 million in the bank.What's more, last year revenues shot up 97% to $198.1 million. The company has about 8,800 customers, up from 5,400 on a year-over-year basis. * The 8 Worst Stocks to Buy Before the Trade Turmoil Cools Off Datadog plans to issue 24 million shares at $19 to $22 and the lead underwriters include MS, GS, JPM, CS, Barclays (NYSE:BCS), Jefferies, and RBC. The company will list its shares on the Nasdaq under the ticker of DDOG. Ping Identity Holding (PING)Source: Shutterstock Ping Identity builds technologies that allow for secure access to any web service or API from any device. At the core of this is sophisticated AI (Artificial Intelligence) and ML (Machine Learning) that analyzes data in real-time, whether from the cloud, hybrid cloud, or on-premise systems.In terms of growth, the company's revenues have jumped from $172.5 million in 2017 to $201.6 million in 2018, up about 17%. More than half of the Fortune 100 use the software.Ping Identity IPO expects to issue 12.5 million shares at a range of $14 to $16 and the lead underwriters include GS, BAC, RBC, Citigroup (NYSE:C), BCS, CS, Deutsche Bank (NYSE:DB) and WFC. The company will list on the NYSE under the ticker of PING. Envista Holdings (NVST)Source: Shutterstock Envista is one of the largest dental product companies, with strong positions in categories like implants, digital imaging, and orthodontics. The company owns a variety of brands like Nobel Biocare Systems, Ormco and KaVo Kerr. They have over one million dentists across 150 countries. Last year, Envista posted revenues of $2.86 billion.A key to the success of the company is a strong focus on innovation. To this end, it spent about $172 million on R&D last year. * 10 Buy-and-Hold Stocks to Own Forever Regarding the upcoming IPO, Envista plans to issue 26.8 million shares at a range of $21 to $24 and the lead underwriters include JPM, GS, MS, Baird, Evercore ISI and Jefferies. The company will list on the NYSE under the symbol of NVST. 10x Genomics (TXG)Source: Shutterstock 10X Genomics develops instruments, consumables, and software to help analyze biological systems at scale, such as for oncology, immunology, and neuroscience.Last year, revenues spiked from $71.1 million to $146.3 million. The company also has an extensive intellectual property portfolio, with ownership or exclusive licenses on over 175 patents (about 470 are pending).As for this upcoming IPO, 10X Genomic expects to offer 9 million shares at a range of $31 to $35 and the underwriters include JPM, GS, and BAC. The company will list its shares on the Nasdaq under the ticker of TXG. SpringWorks Therapeutics (SWTX)Source: Shutterstock SpringWorks Therapeutics is a biotech company, which is focused on precision medicine to create oncology treatments. By leveraging partnerships - such as with Pfizer (NYSE:PFE) -- the company has been able to get two drugs into late-stage trials. For example, Nirogacestat is an oral GSI (gamma secretase inhibitor) that is for desmoid tumors (there are no FDA approved drugs for this).In terms of the IPO, the company expects to offer 7.4 million shares at a range of $16 to $18 and the lead underwriters include JPM, GS and Cowen. SpringWorks Therapeutics will list its shares on the Nasdaq under the ticker SWTX.Tom Taulli is the author of the book, Artificial Intelligence Basics: A Non-Technical Introduction. Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks to Sell in Market-Cursed September * 7 of the Worst IPO Stocks in 2019 * 7 Best Stocks That Crushed It This Earnings Season The post 7 Upcoming IPOs for September appeared first on InvestorPlace.
Dubbed Social CBD, the company takes pride in having launched not only online but also in 10,000 retail locations nationwide, from Walgreens (NASDAQ: WBA) and CVS Health Corp (NYSE: CVS) to Vitamin Shoppe Inc (NYSE: VSI). Management told Benzinga it expects to be at 20,000 retail locations by the end of 2019. “We are excited to launch Social CBD and join in people’s wellness journey nationwide," Social CBD’s President, Angelo Lombardi, told Benzinga.
The past several weeks have been raucous ones for all stocks, but particularly wild ones for healthcare stocks. Not only is the future of the nation's healthcare market in flux, drug companies are facing an inordinate degree of litigation, and biopharma names have dished out plenty of R&D updates … some good, some bad.By and large, the bearish market-wide tide and the weakness healthcare stocks have suffered has become something of an opportunity. A handful of these names have become bargains and are ripe for recoveries. * 10 Stocks to Sell in Market-Cursed September To that end, here's a rundown of ten healthcare stocks to buy, even if they're surrounded by bad news and grim headlines. Some are familiar, and others are not. All of them, however, arguably boast more potential than risk at this time, even if not all of them have yet to reach their worst-case-scenario price.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Johnson & Johnson (JNJ)Source: Sundry Photography / Shutterstock.com Johnson & Johnson (NYSE:JNJ) has arguably faced the worst and most alarming headlines of late, facing not one but two major legal battles.The first one of course is its liability linked to asbestos contained in its talcum powder sold under the brand name Johnson & Johnson. The other? Some states' attorneys general are suggesting J&J was culpable for what's turned into a nationwide opioid addiction epidemic. A closer inspection of both matters reveals the ultimate liability for both may not be as dire as is currently believed.Though the state of Oklahoma recently won a case that will fine Johnson & Johnson $572 million for allowing opioid abuse to become a "public nuisance," that figure was smaller than shareholders had feared, and may point to similarly small figures in other state-level cases.As for its talcum powder woes, the company is prevailing in some state courts, and losing in others. With the exception of one case in California, the awards granted in cases it has lost have been relatively modest. AbbVie (ABBV)Source: Piotr Swat/Shutterstock AbbVie (NYSE:ABBV) shares are down nearly 50% from their early 2018 high, reaching another multi-month low in August.The underpinnings for that weakness aren't difficult to deduce. Aside from an increasingly tough battle to defend its patents on breadwinner drug Humira, the decision to acquire Allergan (NYSE:AGN) hasn't been a particularly popular one with shareholders.ABBV stock owners have also been disappointed by a couple of major busts on the R&D front. The company's work in turning Rova-T into a successful lung cancer treatment, for instance, was thrown away when AbbVie ended phase 3 trials after it failed to create meaningful results. * 7 "Boring" Stocks With Exciting Prospects The punishment, so to speak, hasn't fit the crime though. AbbVie now quietly rates as one of the top healthcare stocks to buy at its now greatly-lowered price thanks to a dividend yield of 6.44% that's reasonably well protected, and a forward-looking P/E of only 7.. CVS Health (CVS)Source: Shutterstock Admittedly, it remains unclear which sliver of the healthcare market will be the one to bear the brunt of any cost-cutting reform. Hospitals and insurers are just as targeted as pharmacy names like CVS Health (NYSE:CVS), which is a key part of the reason CVS stock has been nearly cut in half since the middle of 2015.That doubt is rooted in a paradigm shift that isn't likely to happen, however, or at least not as abruptly as some are fearing.Case in point: Just days after announcing plans to eliminate the rebate enjoyed by pharmacies and pharmacy benefits managers, President Donald Trump backpedaled. Although it's not clear where the pressure for the reversal came from, clearly someone is in the industry's corner.In the meantime, CVS is preparing for all contingencies. It now owns health insurer Aetna and is tiptoeing into the medical device arena. In July the company announced it was beginning trials of an at-home kidney dialysis solution. Bausch Health Companies (BHC)Source: n4i Via FlickrYou may recognize the name as one that has specialized in eye care for a long time now. And Bausch -- Bausch + Lomb, to be precise -- certainly still makes contact lenses and eye-surgery products. This is not the Bausch Health Companies (NYSE:BHC) in question, however. While Bausch Health owns and operates Bausch + Lomb, the Bausch that has earned a spot on a list of healthcare stocks to buy is actually the company formerly known as Valeant Pharmaceuticals.That name will also ring a bell for most investors … although not a good one. That's the company that went on an aggressive acquisition spree, planning on buying specialty drugs to then mark their price up to unnecessarily expensive levels.In addition to public outcry, congress got involved, ultimately forcing then-CEO Michael Pearson out, and forcing new CEO Joseph Papa to rebuild everything the company is, and does. * 7 Best Stocks That Crushed It This Earnings Season Surprise! He's doing it. Though it's still erratic and somewhat unpredictable, sales are expected to grow 1.6% this year, and 3% next. It's not much, but it's enough to drive real earnings growth. Intercept Pharmaceuticals (ICPT)Source: Shutterstock Intercept Pharmaceuticals (NASDAQ:ICPT) isn't an easy name to own. Although the biopharma outfit is driving major sales growth with its chronic liver disease drug Ocaliva, the company's a one-trick pony that's still losing money. Last quarter's top line of $66.3 million -- mostly Ocaliva -- was up 53% year-over-year, but still let Intercept book an operating loss of $63.6 million and a total net loss of $71.4 million.In this case though, the company's fiscal trajectory against the backdrop of an obesity epidemic translates into a bright future. Intercept Pharmaceuticals is also working on a nonalcoholic steatohepatitis (NASH) drug that takes aim at what is expected to be the leading cause of liver failure by 2020. That under-served market could be worth $50 billion, if not more, leaving this company amazingly well-positioned for growth. Pfizer (PFE)Source: Manuel Esteban/Shutterstock Stripping out last month's 20% stumble, Pfizer (NYSE:PFE) has been a pretty good bet in recent years. Thing is, the aspects that have made PFE stock one of the best healthcare stocks to buy for a long while now are still in place. That is, a diverse portfolio that doesn't lean too much on any one drug. No one product accounts for more than 10% of the company's total revenue.The selloff, for the record, was spurred by the decision to sell its 'off patent' drug business operating as Upjohn to rival Mylan (NASDAQ:MYL). The downside of that exit appears to be fully priced in now though, and then some. * The 8 Worst Stocks to Buy Before the Trade Turmoil Cools Off In the meantime, a $500 million investment in a North Carolina manufacturing facility pushes the company deeper into gene therapy waters, which may offer more upside than existing business lines. PRA Health Sciences (PRAH)Source: Shutterstock When investors thinks of healthcare stocks, PRA Health Sciences (NASDAQ:PRAH) isn't a name that generally comes to mind. Indeed, most investors may have never even heard of it.The one who have heard of it, meanwhile, might be wishing they hadn't. Even with this year's choppy rebound effort, shares of the contract research organization are still down 19%.A bet against PRA Health Sciences hasn't been a particularly wise bet in the grand scheme of things. Contracted research is a key part of the future of healthcare, as outsourcing R&D becomes the more cost-effective solution.PRA Health has the numbers to prove it, too. This year's expected 6.4% revenue growth isn't jaw-dropping, but it's reliable, as will be next year's projected 8.4% top-line growth. Better still, that progress is driving even greater profit growth. Per-share profits are expected to reach $5.03 this year, up from last year's $4.28, and grow 13% to $5.68 per share next year. Alexion Pharmaceuticals (ALXN)Source: Shutterstock Last week, Alexion Pharmaceuticals (NASDAQ:ALXN) shares started what would end up becoming a 14% plunge. The selloff may not be done yet either. The prod? Amgen (NASDAQ:AMGN) is challenging Alexion's patent on Soliris, which is used to treat a trio of rare diseases. It makes up the bulk of Alexion's sales.It's an alarming development, although not one that's necessarily devastating. Right or wrong, running patent-based interference meant to disrupt other companies is the new norm within the pharmaceuticals arena, and there's not necessarily any assurance that Amgen will prevail. The chatter that Amgen could make an acquisition bid for Alexion still has its merits as well. * 10 Buy-and-Hold Stocks to Own Forever In the meantime, the forward-looking P/E of 9.9 suggests ALXN is priced cheaply enough to survive any profit-sharing agreement that Amgen may end up pursuing instead of an outright legal victory. Cigna (CI)While pharmacies and pharmaceuticals are certainly vulnerable to any sweeping overhauls in the way the United States healthcare industry works, it's not like the insurers are particularly well-shielded. Cigna (NYSE:CI), for instance, is down more than 30% since its early 2018 high on concerns about insurers' futures, after they all had a pretty good run between 2013 and 2017.Not everyone is concerned about one of a myriad of 'maybes' that could impact Cigna though.Alliance Bernstein analyst Lance Wilkes is one of those optimists. He recently upgraded CI stock while it was down, re-rating it at an "Outperform," explaining "We are increasing our price target and rating on [Cigna] based upon earnings growth driven from deal synergies and its low valuation, which we believe offset our [long term] concerns on policy risks and strategic position."CI stock is trading at only 14 times its trailing earnings, and only 8.2 times next year's expected profits. Eli Lilly (LLY)Source: Shutterstock Finally, add drugmaker Eli Lilly (NYSE:LLY) to your list of healthcare stocks to buy despite a recent wave of bad news.For Lilly, that's mostly been spurred by pipeline and portfolio questions. In March it announced it would launch a cheaper alternative to its own top-selling Humalog insulin, and early this year it decided to acquire Loxo Oncology at an unpopularly frothy premium.There's a reason that slide suffered during the first half of the year has started to reverse course beginning in early August. Not only did Lilly win the outcome it wanted in a recent arbitration claim regarding a collaboration it entered with Adocia to develop rapid-acting insulin, a phase 3 trial of its oral JAK inhibitor Baricitinib as a therapy for atopic dermatitis showed tremendous promise with last month's update.They're little victories that can really add up in investors' heads.As of this writing, James Brumley held no 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 Stocks to Sell in Market-Cursed September * 7 of the Worst IPO Stocks in 2019 * 7 Best Stocks That Crushed It This Earnings Season The post 10 Healthcare Stocks to Buy Despite the Headlines appeared first on InvestorPlace.
August 15 was not a good day for investors in Charlotte's Web (OTC:CWBHF) stock. Hopefully you weren't heavily allocated when the shares slid 6.6% and the stock message boards were overrun with bears -- many of them Charlotte's Web stock bulls just a day prior.Source: Shutterstock The culprit behind the sudden sentiment change? Second-quarter earnings. Though CWBHF saw huge revenue jumps from past quarters, those jumps fell short consensus estimates. Nonetheless, I suspect that a turnaround is imminent for Charlotte's Web stock and the bears will go back into hibernation -- and I've got more than a gut feeling to back up my bullish outlook. Detailing the Bear Raid on CWBHF StockIn the case of Charlotte's Web stock, I see this as a market overreaction to heightened analyst expectations. Sure, there's also the fact that the cannabis market as a whole declined throughout the summer, but it's the post-earnings drop that pressured a lot of weak hands to bail on CWBHF stock.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Stocks to Buy for September So, let's break it down: as reported by the company for the second quarter of 2019, Charlotte's Web's revenues increased by a whopping 45% year-over-year to $25 million (in American dollars, not Canadian). You'd think that 45% would have been more than enough revenue growth, but analysts were expecting the dollar figure to be $27.8 million, so the bar was set quite high -- too high, in my humble opinion.I'm equally impressed with the second-quarter increase in Charlotte's Web's growing capacity. As the company has reported, the total number of acres of cannabis planted increased to 862 this year, representing 182% more than the already considerable 300 acres planted last year. As a point of reference, the 300 acres' worth of cannabis planted by Charlotte's Web in 2018 produced an astounding 675,000 pounds of salable hemp product. A Little Giant in the CBD SpaceAnd so, while the analysts and naysayers weren't impressed, I liked the numbers I saw with Charlotte's Web's earnings release. Sure, it's not the biggest cannabis company or even the largest CBD-focused company, but Charlotte's Web has been growing by leaps and bounds and that's the stuff that stock-market wealth is made of.Indeed, with giant retailers like CVS (NYSE:CVS) and Kroger (NYSE:KR) stocking the company's products on their shelves, I expect Charlotte's Web to become a household name in the near future. I can just see it now: soccer moms picking up a batch of Charlotte's Web CBD oil, capsules, or gummies along with their milk and eggs…That might sound humorous, but it's not as outlandish as you might think. Deanie Elsner, the CEO of Charlotte's Web, clearly envisions the mainstreaming of the company's CBD products as an imminent event:"We have been experiencing increased sales through both our e-commerce and retail sales channels. Top-tier mass retailers are entering the market as several national grocery and drugstore brands have announced their CBD plans. The majority of these are now carrying Charlotte's Web products. This is a significant development for the hemp CBD category." Delivering CBD to Your Doorstep… And Value to ShareholdersBut don't get the wrong idea -- Charlotte's Web's future isn't just about getting the company's products on store shelves. Perusing the company's website, there's little doubt that Charlotte's Web is pushing hard for online shopping and home delivery, along with its subscription service -- a shopping feature that millennial consumers have become accustomed to.The Charlotte's Web Autoship Program is, I must admit, hard to resist: a 10% discount on subscription orders, free two-day shipping on the first order, and every seventh order is free. Granted, the company's CBD products aren't the cheapest on the market, but I've never heard anyone complain about the quality, and Charlotte's Web's proprietary hemp genetics simply can't be replicated by competitors. * 7 Industrial Stocks to Buy for a Strong U.S. Economy The Bottom Line on Charlotte's Web StockThere's no shortage of cannabis stock to choose from, and I won't deny that there's competition in the CBD product niche. Still, with interest from well-established retailers and a savvy subscription service for online shoppers, Charlotte's Web and CWBHF stock are setting up for a powerful post-summer recovery.As of this writing, David Moadel did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 3 Artificial Intelligence Stocks to Buy * 7 Industrial Stocks to Buy for a Strong U.S. Economy * 3 Beaten-Down Bank Stocks to Buy and Hold for the Long Term The post Buy the Dip Charlotte's Web Stock for a Pure Play in CBD appeared first on InvestorPlace.
Struggling pharmacy retailer Rite Aid (NYSE:RAD) has shown surprising signs of life recently, as RAD stock has rallied an impressive 40% over the past seven trading days. That's a big rally in a short amount of time. Indeed, it's the biggest seven-day rally RAD stock has staged in the past five years.Source: Ken Wolter / Shutterstock.com Does this recent strength imply that the worst of the secular decline in Rite Aid is over? Is RAD stock finally ready to rebound?I don't think so. It's worth contextualizing this rally. Sure, the stock is coming off its best seven-day stretch in over five years. But, the Rite Aid stock price today is simply where it was a month ago.InvestorPlace - Stock Market News, Stock Advice & Trading TipsIn other words, this big rally happened on the heels of a big selloff, and in the big picture, it doesn't look all that significant. It also doesn't help that there isn't much fundamental or optical support for this rally. The valuation remains fairly unattractive without fundamental upside drivers. As such, I think the big seven-day rally in Rite Aid stock is more likely to fizzle out than to persist.To be sure, at some point, Rite Aid stock could become a buy with multi-bagger potential. But at the current moment, that bull thesis lacks clarity. So long as it continues to lack clarity, I think the safest place to hangout here is on the sidelines. Rite Aid Has Secular ChallengesWhen it comes to Rite Aid, I think what you have is the pharmacy version of GameStop (NYSE:GME) or J.C. Penney (NYSE:JCP). That is, just as GameStop and J.C. Penney failed to adapt to digital consumption trends and have subsequently lost relevance in the video game and mall retail worlds, Rite Aid has similarly failed to adapt to digital consumption trends and has subsequently lost relevance in the pharmacy world.The story is pretty simple. E-commerce happened. When e-commerce happened, everything changed. Consumers shifted from physical to digital shopping. Some retailers changed with the times -- in the pharmacy world, see Walgreens (NASDAQ:WBA) and CVS (NYSE:CVS) -- and have since thrived as omni-channel retailers. Both Walgreens and CVS have seen their pharmacy market shares grow from 2010 to 2018. * 7 Stocks to Buy In a Flat Market Other retailers didn't adapt. See Rite Aid, who didn't refresh stores to be tech-savvy or build out a robust e-commerce business. Not surprisingly, Rite Aid's pharmacy market share has dropped from 6.2% in 2010, to 2.6% in 2018, while it has gone from a top three pharmacy retailer in 2010, to being nudged out of the top five by the likes of Walmart (NYSE:WMT) and Kroger (NYSE:KR).The unfortunate reality here is that there isn't much visibility to Rite Aid gaining relevance anytime soon. The balance sheet is cash-strapped and debt-heavy, and cash flows aren't consistently profitable, so the company is operating with two hands tied behind its back for the foreseeable future -- meaning that store refreshes and e-commerce expansion aren't coming soon.In other words, Rite Aid has secular challenges that aren't going away any time soon. Until they do, it's tough to see Rite Aid stock rallying in a meaningful way from here, especially considering the stock trades at a not-that-cheap 7-times forward EBITDA multiple. Rite Aid Stock Could Turnaround … But Not YetAs I've argued before, Rite Aid stock could turnaround in the event that its distribution partnership with Amazon (NASDAQ:AMZN) introduces Rite Aid to a new and valuable shopper demographic.The thesis here is simple. Rite Aid shoppers skew old and poor. Amazon shoppers skew young and rich. Amazon's new partnership with Rite Aid will inevitably bring some Amazon shoppers through Rite Aid's doors. Most of those shoppers probably haven't been inside a Rite Aid store in ages, if ever.Most will probably look at the outdated stores, be uninterested, pick up their Amazon.com order, and promptly leave. Some may actually like what they see when go into Rite Aid, meaning some of these new, young and rich shoppers may actually start shopping at Rite Aid stores somewhat regularly.That will provide a meaningful lift for Rite Aid's sales, and this lift should last for several years.All in all, the Amazon partnership gives Rite Aid a unique opportunity to win over a demographic that has long forgotten about Rite Aid. If the company appropriately capitalizes on this opportunity, RAD stock could turn into a multi-bagger from here.But, we don't know if that will happen. Until the data suggests that this is indeed happening, the turnaround thesis in RAD stock will lack conviction and clarity. Bottom Line on RAD StockAt the current moment, there are two ways to look at the price action in RAD stock. One, Rite Aid stock is coming off its best seven-day stretch in over five years, and is ready to turnaround. Two, Rite Aid stock is exactly where it was a month ago, and is stuck in a secular downtrend.I think the latter perspective holds more credibility and has more support. As such, for the foreseeable future, I think it is best to avoid RAD stock.As of this writing, Luke Lango did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 3 Artificial Intelligence Stocks to Buy * 7 Industrial Stocks to Buy for a Strong U.S. Economy * 3 Beaten-Down Bank Stocks to Buy and Hold for the Long Term The post It's Still Too Risky to Bet on Rite Aid Stock appeared first on InvestorPlace.
The U.S. judge overseeing nationwide litigation concerning the opioid crisis on Monday rejected Purdue Pharma LP's effort to dismiss claims that its activities caused a public nuisance. U.S. District Judge Dan Polster in Cleveland said a reasonable jury could conclude that Purdue's alleged fraudulent marketing of opioids, for the purpose of increasing sales, caused a nuisance. Polster's decision came six weeks before the scheduled Oct. 21 trial on the impact of opioids on two Ohio counties.
If you take a glance at the chart of Rite Aid (NYSE:RAD) stock, it is mostly downhill -- going from $15 to $6.60. But this is nothing new. Keep in mind that, during the past 15 years, the RAD stock price has seen an average decline of nearly 16% annually!Source: Shutterstock Okay then, might there be a contrarian play here? Or should investors just throw in the towel? Is there really no hope here? * 7 Triple Threat Growth Stocks to Buy for the Long Term Well, with RAD stock in single digits -- and the sentiment at awful levels -- there does seem like there could be value for a speculative play. Let's face it, the company has some valuable assets and advantages, such as:InvestorPlace - Stock Market News, Stock Advice & Trading Tips * Rite Aid has a well-known brand that's been around since the 1960s. * The company has about 2,500 stores across 19 states, making it the third largest pharmacy chain in the U.S. * RAD serves 8.2 million customers per week and has a wellness+loyalty program of over 13 million members. * The company has its own full service PBM, called EnvisionRxOptions (it aggregates roughly 20 million lives across all businesses).Not too bad, right? I agree. But hey, is all this still enough? Note that the company has some serious challenges.For example, RAD does not have much scale or breadth to be a next-generation pharmacy business. The debt load is $6.4 billion and the market cap is a mere $363 million. In other words, RAD lacks the resources to become something like CVS (NYSE:CVS), which has a growing base of clinics as well as a massive insurance business.Of course, RAD stock also suffers from the secular trend towards e-commerce. The fact is that online platforms from companies like Amazon.com (NASDAQ:AMZN) and Walmart (NYSE:WMT) are eating up market share. In fact, the real fear is that RAD may ultimately become the next Sears (OTCMKTS:SHLDQ). Future Catalysts for RAD StockNow there are some potential catalysts for RAD stock.First of all, the company recently brought in a new CEO, Heyward Donigan, who has worked in the healthcare industry for over 30 years. Before coming on board RAD, she was the CEO of Sapphire Digital, an e-commerce site that analyzes health plans. She has also held executive positions at companies like ValueOptions (a behavioral health improvement company), Premera Blue Cross and Cigna Healthcare (NYSE:CI). All in all, Donigan has broad experience in both traditional and digital healthcare -- which seems to be the right skillsets for RAD.Next, the company has entered a strategic agreement with Adobe (NASDAQ:ADBE) to create more personalized digital experiences, such as with content creation, marketing, analytics and commerce. The goal is to develop a seamless omni-channel platform.Although, perhaps the most important deal is with AMZN, which involves using Rite Aid stores as pick-up points for packages. By the end of this year, the expectation is to have more than 1,500 Amazon Counter locations.This is likely to help drive up traffic. RAD's demographics generally skew older compared to Amazon's. What's more, a similar type of deal with Kohl's (NYSE:KSS) resulted in a 9% increase in foot traffic and an 8% jump in revenues.But the RAD/AMZN arrangement may just be a warmup. If there is traction, it seems reasonable for partnering on digital integration. And yes, AMZN may just ultimately buy out the company to quickly rollout a pharmacy footprint. * 7 Industrial Stocks to Buy for a Strong U.S. Economy Bottom Line on the RAD Stock PriceAgain, RAD stock has some deep issues, which will take time to deal with. But at the same time, the company still has value -- which the AMZN deal validates -- and management is making smart movies with its digital strategy. So as a speculative play, RAD stock does look interesting right now.Tom Taulli is the author of the book, Artificial Intelligence Basics: A Non-Technical Introduction. Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Deeply Discounted Energy Stocks to Buy * 7 Stocks to Buy In a Flat Market * 10 Stocks to Buy to Ride China's Emerging Wealth The post With 3 New Growth Catalysts, Is Rite Aid Stock Finally a Buy? appeared first on InvestorPlace.
CVS Health (CVS) reported earnings 30 days ago. What's next for the stock? We take a look at earnings estimates for some clues.
Fitbit is losing the head of its healthcare business to CVS as the pharmacy giant works to transform itself following the $70-billion acquisition of insurance company Aetna. Adam Pellegrini will lead consumer health efforts at CVS, CNBC reported on Friday. It cited a CVS internal memo saying Pellegrini will join CVS on Monday as senior vice president of transformation consumer health products.
SmileDirectClub made its trading debut today. The teeth-straightening company's stock nose-diving after opening at $20.55 a share, below its IPO price of $23 per share. Yahoo Finance's Zack Guzman & Kristin Meyers, along with Webull CEO Anthony Denier discuss.