|Day's Range||19.12 - 19.12|
Biden's frontrunner status is good news for the pharmaceutical stocks and the hospital chains. More importantly, it's not too late to invest in these stocks because Trump keeps giving more reasons to bail on companies with exposure to China and circle the wagons around the pure domestics.
While the health care sector as a whole has not done particularly well over the last year, CVS Health Corp. (CVS) has managed to underperform even that poor trend. Warning! GuruFocus has detected 4 Warning Signs with CVS. For the last decade or so, the company has been attempting to consolidate various parts of the health care vertical under one roof.
The Qualcomm antitrust case illustrates unusual friction between the Federal Trade Commission and the Justice Department—with 5G in the background.
WOONSOCKET, R.I., May 21, 2019 /PRNewswire/ -- CVS Health Corporation (CVS) will hold its Investor Day in New York City on Tuesday, June 4, 2019, beginning at 8:00 a.m. (ET). Senior members of the CVS Health leadership team will provide an in-depth review of the company's strategies to drive long-term growth and enhance shareholder value. An audio and video webcast of the event will be broadcast simultaneously on the Investor Relations portion of the CVS Health website for all interested parties, and will be archived and available for a one-year period.
According to GuruFocus' list of 52-week lows, these Guru stocks have reached their 52-week lows. The price of 3M Co. (MMM) shares has declined to close to the 52-week low of $166.25, which is 24.5% off the 52-week high of $219.75. The company has a market cap of $95.83 billion.
CVS will hold its annual investor day on June 4, and the company will try to convince investors and analysts that its story is achievable.
In his "No-Huddle Offense" segment of his very popular Mad Money program, Jim Cramer answered the question of what investors should be buying as we brace for both a prolonged trade war and a possible slowdown in our economy. The managed care stocks had been crushed after several Democratic presidential candidates began calling for a single-payer model that promises "Medicare for all." But Cramer noted then, and now, that these proposals simply don't have enough support in Washington to make them a reality. In the daily bar chart of UNH, below, we can see a rally to a December zenith and a zig-zag decline to an April low.
Today, I'd like to discuss the short- and long-term outlook for CVS Health (NYSE:CVS), the integrated pharmacy health care company. CVS stock has been in a multi-year downtrend since July 2015, when it tapped an all-time high of $113.65. Year-to-date, it's extended that, falling almost 20% and currently hovers around $53.Source: Mike Mozart via FlickrWhen I look for companies to add to a diversified portfolio, I look for growing revenue, net income, and dividends, as these factors add favorably to the investment thesis. Therefore, I regard CVS stock a good long-term pick. However, there might be some further short-term price weakness in the stock that investors should anticipate. CVS Health Stock Has Robust FundamentalsCVS Health started the month reporting better-than-expected first-quarter earnings. Revenue grew 34.8% to $61.6 billion. Adjusted operating income increased 56.8% to $3.6 billion. Wall Street mostly credited this growth and improved metrics with the acquisition of Aetna, which CVS Health completed in November. Aetna is the third-largest U.S. health insurance company by membership and revenue.InvestorPlace - Stock Market News, Stock Advice & Trading TipsCVS Health now operates in three main segments that provide it with diversified sources of revenue, earnings and cash flow: * Pharmacy Services (over 70% of sales come from it); * Retail/LTC; * Health Care Benefits (recently established).The Pharmacy Services segment provides pharmacy benefit management services to employers, health plans, and government employee groups as well as government sponsored programs. Revenues last quarter were up 3.1% year-over-year. * 10 Retirement Stocks That Won't Wilt in a Bear Market The Retail/LTC segment fulfills prescriptions for medications, provides patient care programs, sells general merchandise, and offers health care services through walk-in clinics. Another way to think about this segment is the two parts to a CVS store, that is, the front retail section and the rear pharmacy section. Revenues rose 3.3% year-over-year.With the acquisition of Aetna, CVS Health established a new Health Care Benefits segment, which would be the equivalent of the former Aetna Health Care segment. This segment now provides a full range of insured and self-insured medical, pharmacy, dental and behavioral health products and services.CVS Health's quarterly report showed that adjusted earnings per share grew 9% to $1.62. Management also gave an improved outlook for the rest of the year -- a number highly cheered by investors. The company's size and presence as well as proactive management are likely to increase the group's ability to grow revenue and earnings in future quarters, too. Long-Term Strengths of CVS StockWith almost 10,000 pharmacies in the U.S., CVS Health operates a growing and profitable pharmacy segment, filling over a billion prescriptions per year. Going forward, the company is expected to provide medical services within these store locations.At present, there are 1,100 walk-in Minute Clinics within those pharmacies, staffed by nurses and physician assistants. Minute Clinics, which started in 2000, have become the largest operator of retail health clinics, seeing patients for minor treatments, like flu shots, as well as advice on topics like weight loss and smoking cessation. In other words, there is further potential to combine CVS's current dense local footprint with the health care benefits and services offered by Aetna.We all get sick occasionally or have friends and relatives who may need treatments for chronic illnesses. Moreover, according to the Census Bureau, in about two decades the elderly will outnumber children for the first time in U.S. history. That means the country will need more health care facilities and drugs. Therefore, I expect the pharmacy section to continue to contribute strongly to CVS Healthcare bottom line.For CVS Health, 2019 will likely be remembered as a year of transition as management integrates the two companies and clarifies its focus on how to achieve the sustainable growth the group hopes to achieve. There are still questions to which investors do not have the full answers. And the CVS stock price action has been reflecting that uncertainty.With 2020 onward, though, investing in CVS stock may indeed become a healthy long-term supplement for most portfolios. I find the company to be well positioned for the country's evolving demographics and the potential transformation of the U.S. health care system. Therefore it will likely continue to see growth in its fundamentals. What Could Derail CVS Stock Short Term?Despite the strength in the recent earnings results, many investors are still wondering whether CVS Health might have overpaid for in the $69 billion Aetna deal announced in December 2017. Although analysts are hopeful that this merger will also create opportunities for cost savings, Wall Street is not exactly sure as to where the full synergies of the combined group will be.Furthermore, the acquisition of health-insurance giant Aetna is adding a substantial amount of debt to CVS's balance sheet. In March 2018, investors showed a healthy appetite for CVS's $40 billion M&A bonds. Yet, many analysts regard the amount of long-term debt as quite risky. Therefore, potential CVS stock investors may want to pay close attention to the debt levels in future earnings results.For CVS Health, its pharmacy benefits management (PBM) services have always been very important. If CVS cannot get its current PBM customers who are insured elsewhere to switch to Aetna, then investors may get worried about future earnings and decide to step on the sidelines.Or if CVS's PBM business cannot achieve greater negotiating power and benefits with drug companies, as management is hoping that the merger will enable the group to do, then CVS stock may become a bitter pill to swallow. Technical Analysis Shows a Mixed ViewDifferent fundamental factors have driven down CVS stock price in the last four years. Due to the decline in price since 2015, CVS Health stock also reflects a not-so-pretty technical picture. Both short- and long-term technical charts look weak, pointing to the possibility for more volatility and even downside around the corner.Yet if the CVS stock price declines further, long-term investors may find it particularly attractive. I believe CVS Health stock price is likely to find support first at $50 and then at $40. In other words, between $40 and $50, I'd expect the stock price to start to stabilize and then trade sideways, possibly until its next earnings report in August. * 7 Stocks to Buy that Lost 10% Last Week If you aren't already long CVS stock, you may want to remain on the sidelines and wait for a pullback, say up to 10%. I'd also consider buying covered calls in conjunction with going long on CVS Health stock.In general, selling covered calls on dividend-paying stocks, like CVS, would enable long-term investors to weather further volatility as well as create extra portfolio yield. If you would like to find more about the strategy you may want to talk to your investment advisor or broker. The internet also offers plenty of examples of how to execute covered calls. Most investment advisors would regard a covered call as a conservative strategy that requires no extra margin.Expect near-term trading to be choppy at best until the volatility in the broader market decreases. Ultimately, CVS stock will need to stabilize and build a base again before a long-term sustained leg up can occur. Investor TakeawayAfter the next earnings call in August, if you still believe in the bull case for CVS Health stock, you may consider buying into the shares, especially if the price is below $50. Long-term shareholders would also enjoy a current dividend yield of 3.8%.As of this writing, Tezcan Gecgil did not hold a position in any of the aforementioned securities. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 High-Yield REITs to Buy (Even When the Market Tanks) * 5 Great Blue-Chip Stocks to Buy Today * 7 Tech Stocks to Buy That Are Also Perfect for Retirement Compare Brokers The post Does Progress On Aetna Integration Make CVS Health Stock A Buy In May? appeared first on InvestorPlace.
CVS Health Corp., Vodafone Group PLC, Occidental Petroleum Corp. and BT Group PLC have declined to their respective 3-year lows
The largest U.S. cannabis retailer's deal to become the world’s biggest legal seller is the latest seismic shift in the industry.
CVS Pharmacy is removing dozens of vitamins and supplements from its shelves and launching a number of new products in an effort to grow its prominence in the health and wellness space.
WOONSOCKET, R.I., May 15, 2019 /PRNewswire/ -- CVS Pharmacy, the retail division of CVS Health (CVS), today announced the launch of "Tested to Be Trusted", a program requiring third-party testing of all vitamins and supplements sold in-store and online to confirm the accuracy of the dietary ingredients listed on the supplement facts panel and to confirm products are free from certain additives and ingredients. 1,400 vitamins and supplements from 152 brands across 11 categories, including diet and nutrition, pain and digestive, have completed testing. The expanded assortment and new vitamin and supplement testing standards are the latest evolution in CVS Pharmacy's commitment to being a trusted partner in health and holistic wellness, and are the focus of a new campaign dedicated to the importance of self-care.
VANCOUVER and DENVER, CO , May 14, 2019 /CNW/ - Cannabis One Holdings Inc. (CBIS.CN) ("Cannabis One", "CBIS", or the "Company"), an emerging, premier "House of Brands" in North America , is pleased to announce that it is expanding its multi-state footprint for both CBD and THC-infused products with the leasing of two (2) manufacturing and processing facilities in the State of Oregon , totaling over 21,000 ft2. Located near Portland, Oregon , the Company is transitioning the existing facilities into state-of-the-art manufacturing and distribution centers.
A federal judge on Monday ordered up to three days of hearings next month to consider CVS Health Corp's $69 billion merger with Aetna, which has closed but must still get court approval. The criticism of rising drug prices has come from across the political spectrum, from U.S. President Donald Trump, a Republican, to progressive Democrats like U.S. Senator Elizabeth Warren, who is running for president.
It's a tricky time for pharmacy-chain-turned-healthcare-mogul CVS Health (NYSE:CVS), which has its fingers in pretty much every part of the healthcare supply chain. This has created some opportunities for the company that bulls say will carry it higher in the years to come. However, the firm's metamorphosis into a healthcare goliath came at a hefty price, which has bears worried about CVS stock's debt load. Shares of CVS have lost more than 20% so far this year, but the question is: can they go up from here? Here's a look at the bull and bear cases for CVS Health stock. Bulls Applaud AcquisitionsSource: Mike Mozart via FlickrBulls Point to the synergies that CVS created for itself when it branched out into other areas of the healthcare arena. The firm used a series of acquisitions in order to add private benefits manager (PBM) and private health insurer to its portfolio. Most recently, the company acquired Aetna -- a move that many praised as a defensive play to avoid increasing competition from Amazon (NASDAQ:AMZN) and further expand CVS's reach within the healthcare industry. InvestorPlace - Stock Market News, Stock Advice & Trading TipsIn the CVS' most recent quarterly results, the Aetna purchase appears to be paying off, as revenue for the firm's health-care benefits segment surpassed expectations at $17.87 billion. * 7 Dividend Stocks to Buy as the Trade War Reignites Bears Say Acquisitions Are ExpensiveOn the flip side, bears are less congratulatory about the Aetna purchase. For one, many analysts say that the $68 billion that CVS paid for Aetna was too steep. Pointing to the firm's purchase of Omnicare back in 2015, they say this isn't the first time management has made a bad deal and overestimated how much an acquisition will benefit CVS' business.Plus, the Aetna purchase didn't do much to insulate CVS from the headwinds in the healthcare space. If anything, buying a private insurance business and becoming a one-stop shop for pretty much every healthcare service there is has put CVS stock firmly in the center of the healthcare debate in America. Bulls Are Confident About the FutureIt's no secret that healthcare is a hot topic in the US, especially come election season. But the bulls look at CVS' integrated structure as a positive as the space moves forward. By combining a retail pharmacy with a PBM, CVS is ultimately able to lower costs for its clients while still keeping them tied into the CVS network. We have yet to see how the tie-ins with Aetna will play out, but its likely that CVS will use it's link with Aetna to promote CVS clinics for low-risk issues. Again, this synergy will be beneficial to everyone involved because it will lower costs for insurers and patients while benefiting CVS clinics. Bears Say Turbulence AheadOn the other hand, CVS could become a talking point during the 2020 Presidential race as candidates debate how to proceed with healthcare reform in the US. Already the acquisition is being criticized as a way to reduce patients' choices and reduce transparency within the industry. The firm is almost certain to come up, as the race heats up and candidates debate hot-button issues like drug prices and healthcare reform. So Which Is It?No stock comes without risk, but with healthcare so up in the air right now and the political climate becoming increasingly hostile, CVS and its peers are extremely susceptible to volatility. With that said, if you're a long-term investor it could be a great time to add CVS to your portfolio. Yes, the stock is likely to suffer through some peaks and troughs in 2020 as the presidential race heats up, but, overall, the firm looks like a winner in the healthcare space. * 10 'Buy-and-Hold' Stocks to Own Forever Yes, CVS is carrying a staggering amount of long-term debt following its acquisitions, but the firm should be able to pay that down significantly over the next few years. Having a presence across the board in the healthcare space is going to be a boon for CVS and could help it weather the political storm that's about to hit. For that reason, I'm going to agree (albeit cautiously) with the bulls on this one. CVS stock looks like one of the best value plays in the healthcare space right now, so if you can take on a bit of volatility, it's worth considering.As of this writing Laura Hoy was long AMZN. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Dividend Stocks to Buy as the Trade War Reignites * 10 Stocks That Could Squeeze Short Sellers, Including CGC * 5 Tech Stocks Getting Crushed Compare Brokers The post Is CVS Stock A Deal or a Dud? appeared first on InvestorPlace.
The Vilas Fund recently published its Q1 2019 Investor Letter (download here), in which it shares its quarterly performance, reporting 34.3% gain in the period. The fund also posted short comments on several holdings, among which were CVS Health Corporation (NYSE:CVS) and Walgreens Boots Alliance, Inc. (NASDAQ:WBA). For these two companies, The Vilas Fund said […]