74.59 +0.11 (0.15%)
After hours: 7:10PM EST
|Bid||74.27 x 1000|
|Ask||74.65 x 800|
|Day's Range||73.89 - 75.08|
|52 Week Range||51.72 - 78.06|
|Beta (3Y Monthly)||0.88|
|PE Ratio (TTM)||20.98|
|Earnings Date||Feb 18, 2020 - Feb 24, 2020|
|Forward Dividend & Yield||2.00 (2.67%)|
|1y Target Est||79.48|
(Bloomberg Opinion) -- The merger floodgates broke open five years ago, and now U.S. Senator Elizabeth Warren wants to close the hatch. Her proposed bill to substantially restrict big corporate tie-ups is more a presidential campaign statement than viable legislation — and it certainly won’t score her any more points with the Wall Street crowd — but she is calling attention to the maniacal pace of dealmaking in corporate America and the need to modernize antitrust laws that have permitted some recent problematic transactions.More than $7 trillion of takeovers of U.S. companies have been announced since this day in 2014 — 52,694 companies to be exact.(1) That compares with just $4.4 trillion of deals in the previous five-year period. The transactions grew over time as balance sheets flush with cash and income statements desperate for growth created a perfect storm, which more often than not was stoked by pliable regulators. The Walt Disney Co. acquired 21st Century Fox Inc.; Charter Communications Inc. bought Time Warner Cable Inc.; CVS Health Corp. took over Aetna Inc.; Marriott International Inc. merged with Starwood Hotels & Resorts Worldwide Inc.; and T-Mobile US Inc. is trying to buy Sprint Corp. Those are just some of the more recognizable names. Warren, one of the top-polling candidates heading into the Democratic primaries, wants to ban deals in which one company has annual revenue of more than $40 billion, or both businesses generate more than $15 billion in sales, according to a draft of the bill reviewed by Bloomberg News. (A notable exception would be companies facing insolvency.) That could effectively prevent every top airline, insurer, manufacturer, oil producer, retailer, technology platform and other conglomerates — perhaps even Warren Buffett’s M&A vehicle, Berkshire Hathaway Inc. — from making any acquisitions. It would sound the M&A death knell. The idea, however, is unlikely to gain broad support among lawmakers.Even so, it’s hard not to notice the rising drumbeat of politicians concerned about overreach by corporate giants, particularly those in the tech field. Senator Amy Klobuchar, another Democratic presidential candidate, plans to introduce separate antitrust legislation soon, Bloomberg News reported, citing a person familiar with the matter. (Michael Bloomberg, the founder and majority owner of Bloomberg LP, the parent of Bloomberg News and Bloomberg Opinion, is also campaigning for president.)For the Trump administration’s part, the U.S. Justice Department is already investigating whether tech giants — namely Apple Inc., Amazon.com Inc., Facebook Inc. and Google — are using their unchecked power to engage in harmful business practices. But as I wrote in July, if regulators are so concerned about protecting consumers from tech overreach, their glowing endorsement of T-Mobile’s takeover of Sprint is a funny way of showing it; it will shrink the U.S. wireless market from four to three major carriers and remove a company that’s helped to keep customer prices in check.Antitrust regulation under President Donald Trump has at times created questionable optics. Makan Delrahim, the Justice Department’s top antitrust enforcer, seemed to switch his stance on AT&T Inc.’s takeover of Time Warner Inc. as Trump railed against the deal. Time Warner was the parent of CNN, which Trump views as his personal nemesis. (I’ve argued that whatever the case, scrutiny of the megamerger was warranted considering the broad market power it gave to AT&T as media companies without such scale struggle to compete.) By comparison, Disney and Fox, which was controlled by Trump pal Rupert Murdoch, closed their megadeal with few regulatory hiccups. Warren has criticized other giant deals, such as the merger of SunTrust Banks Inc. and BB&T Corp. and the combination of seed makers Bayer AG and Monsanto Co. Given that they aren’t household names, though, most Americans are unfazed by or unaware of such deals, even though they may feel the effects later. Her bill would direct the government to take into account not just whether a merger will lead to higher prices but also what the impact might be on workers, privacy and industry innovation. To justify the cost of buying another large company, dealmakers tend to come up with ambitious estimates of synergies, a euphemism for layoffs. It’s clear that the meaning of “harm” needs to be expanded in the antitrust sense, and laws need to take a more holistic view of the potential consequences of M&A as the lines between industries continue to blur. The Big Tech factor also needs to be weighed, as some deals are being done in part to respond to companies like Amazon that are spreading their tentacles into new areas. On Wednesday, TV-network operators CBS Corp. and Viacom Inc. completed their own merger, a bid to cut costs and create more scale to compete against a new roster of even more powerful media giants: Amazon, Apple, AT&T and Disney. Even then, ViacomCBS Inc., as the merged entity is now called, may not be big enough, and so it may be only a matter of time before it gets swallowed. Warren’s overly broad proposal likely isn’t the answer. But Democrats do seem ready to at least try to rein in a market that’s gotten out of hand. For dealmakers, this may be last call at the M&A party.(1) Data compiled by Bloomberg as of Thursday morning. Excludes terminated deals.To contact the author of this story: Tara Lachapelle at email@example.comTo contact the editor responsible for this story: Daniel Niemi at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Tara Lachapelle is a Bloomberg Opinion columnist covering the business of entertainment and telecommunications, as well as broader deals. She previously wrote an M&A column for Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
As part of its commitment to building healthier communities, the Aetna Foundation today announced it will be donating a total of $1 million to the Boys & Girls Clubs of Providence and Hartford. Both locations will receive $500,000 over the next five years.
CVS Health Corporation (NYSE: CVS) today announced it has successfully completed the first year of combined operations following the acquisition of Aetna in late 2018. The combined company has met or exceeded its first-year integration goals while introducing new, consumer-focused offerings as a result of its unmatched capabilities. CVS Health remains on track to meet its most recent 2019 net synergy guidance and remains confident in its net synergy targets for 2020 and 2021.
Between 2006 and 2012, the data shows more than 2.5 billion prescription pain pills were supplied to North Carolina.
UPS tapped a leader to oversee the company's new health-care unit that's aimed at pharmaceutical, biopharma and medical device companies.
Recent data from the Centers for Disease Control and Prevention (CDC) indicate that seasonal flu activity is increasing week over week, with cases reported in nearly all states.i As National Influenza Vaccination Week (Dec. 1-7) begins, CVS Health (NYSE: CVS) reminds customers that it is not too late to get a flu shot to protect themselves and their family members from the flu.
CVS Pharmacy, the retail division of CVS Health (NYSE: CVS), announced today that it has completed the rollout of time delay safes in all of its 375 CVS Pharmacy locations in North Carolina, including pharmacies located in Target stores. The safes are anticipated to help prevent pharmacy robberies and the diversion of controlled substance narcotic medications by keeping them out of the hands of unauthorized individuals. In addition, the safes are anticipated to help CVS Pharmacy ensure the safety and well-being of its customers and employees.
Health insurer Centene Corp said on Monday it had entered an agreement to sell its Illinois unit to CVS Health Corp, moving a step closer to closing its $15.27 billion deal to buy smaller rival WellCare Health Plans Inc. Centene expects to scale up its government-backed Medicare and Medicaid businesses with the WellCare deal, but in some states Medicaid divestitures may be required, such as Georgia and Illinois, Wall Street analysts had pointed out. In September, following the U.S. Department of Justice's demand for additional information regarding the merger, WellCare agreed to sell its Missouri and Nebraska Medicaid plan units due to significant overlap in business in the states with Centene.
Centene Corporation (NYSE: CNC) ("Centene") and CVS Health (NYSE: CVS) announced today that, in connection with the previously announced merger agreement between Centene and WellCare Health Plans, Inc. (NYSE: WCG), Centene has entered into a definitive agreement under which CVS Health will acquire Centene's Illinois health plan subsidiary, IlliniCare Health Plan, Inc. ("IlliniCare"). The transaction entails the sale of Centene's Medicaid and Medicare Advantage lines of business in Illinois.
Although the masses and most of the financial media blame hedge funds for their exorbitant fee structure and disappointing performance, these investors have proved to have great stock picking abilities over the years (that's why their assets under management continue to swell). We believe hedge fund sentiment should serve as a crucial tool of an […]
Is Booking Holdings Inc. (NASDAQ:BKNG) a good place to invest some of your money right now? We are going to take a look at hedge fund activity surrounding BKNG as well as its peers like Bristol Myers Squibb Company (NYSE:BMY), CVS Health Corporation (NYSE:CVS), Itau Unibanco Holding SA (NYSE:ITUB), and Fidelity National Information Services Inc. (NYSE:FIS) […]
The state has nixed two benefit administrators for 426,000 Medicaid enrollees, marking a multibillion dollar shift in Kentucky's managed-care market.
It’s unclear what Starboard’s playbook for engaging with CVS management is. The go-to move for activist investors—break up the company to unlock value for shareholders—seems to be impractical here.
FDA Says CBD Can Hurt Your Liver Potentially speaking. Potentially, anything can hurt your liver, but that isn’t stopping the Food and Drug Administration from singling out cannabidiol (CBD), the nonpsychoactive cannabinoid generally recognized as safe by most people, but not officially so by the FDA. The compound is now sold in pharmacies including CVS […]The post Market Morning: CBD Warning, Chemocentryx Win, Huge Tory Majority, Amazon Injuries appeared first on Market Exclusive.
(Bloomberg) -- Shares of CVS Health Corp. rose after a report that activist investment firm Starboard Value LP had taken a small stake in the drugstore chain and held talks with management.Shares of the company, which runs almost 10,000 drugstores across the U.S., closed up 1.7% Monday after the Wall Street Journal’s report.The Journal described the stake in CVS as small, and said the two firms had held amicable discussions. CVS declined to comment. Representatives for Starboard didn’t immediately respond to requests for comment.CVS, which has a market value of roughly $99.6 billion, would be a big target for Starboard. The New York hedge fund hasn’t shied away from mammoth targets though. Earlier this year, for example, it built a small position in Bristol-Myers Squibb Co. in a failed attempt to block its takeover of Celgene Corp.CVS has been transforming itself into a vertically integrated health-care company, with a pharmacy-benefit management unit and a health insurer, Aetna. It’s also transforming some of its stores into so-called health hubs, where people can get medical services.(Updates with CVS declining to comment in third paragraph)\--With assistance from Scott Deveau.To contact the reporter on this story: Robert Langreth in New York at email@example.comTo contact the editors responsible for this story: Drew Armstrong at firstname.lastname@example.org, Timothy Annett, Mark SchoifetFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
UPS has flown more than 1,000 revenue-generating drone delivery flights on medical campuses as it expands into private home delivery. the vice president of UPS advanced technology group discusses the next steps to make drone delivery mainstream.
Starboard Value LP has taken a stake in CVS Health Corp. according to a published report Monday. The size of the stake isn't known but is apparently fairly small, The Wall Street Journal reported, citing people familiar with the matter.
There has been a lot of chatter recently about momentum stocks versus value stocks, thanks to a huge pivot that started in September. Specifically, investors are asking two questions -- why did this pivot happen, and will it continue?In short, it's happening all because of the 10-year U.S. Treasury yield, and it will persist for the foreseeable future.The logic is simple. Lower yields support momentum stock valuations by decreasing the discount rate on future profits, and thereby increasing the net present value of future profits. Theoretically, this should help all stocks. But, momentum stocks derive more value from future profits than value stocks, so lower yields disproportionally benefit momentum stocks. Thus, when yields move lower, momentum stocks outperform. When yields go higher, momentum stocks underperform.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe data is also simple. From January to May 2019, the 10-year Treasury yield was largely range-bound between 2.5% and 2.7%. During that stretch, the the iShares Momentum Factor ETF (BATS:MTUM) and the iShares Value Factor ETF (BATS:VLUE) both returned about 13%-14%.From May to September 2019, however, the 10-year Treasury yield plunged from 2.5% to 1.5%. During that stretch, MTUM rose 6%. VLUE dropped 4%. Then, from September to November 2019, the 10-year Treasury yield rebounded to 2%, the Momentum Factors ETF fell flat, and the Value Factors ETF rose 11%. * 7 Companies Using Artificial Intelligence to Outperform the Market In the momentum versus value debate, it's all about yields. Thanks to an improving economic outlook, easing geopolitical tensions and a Federal Reserve that seems to be done with this rate-cut cycle, it appears that yields will keep rising for the foreseeable future. As they do, value stocks should continue to work.With that in mind, let's take a look a five strong value stocks that are worth buying as yields move higher. Strong Value Stocks to Buy: Intel (INTC)Source: JHVEPhoto / Shutterstock.com Percent Return Since September: 22%First on this list of strong value stocks to buy as yields move higher is global semiconductor giant Intel (NASDAQ:INTC).The bull thesis on INTC is simple. This is a value stock trading at a very reasonable 12.3-times forward earnings multiple, with a respectable 2.2% yield. Those are deep value characteristics, so as yields move higher and provide a boost to the whole value category, INTC stock should benefit from that boost.At the same time, thanks to easing global geopolitical tensions, economic activity is starting to pick back up. This is especially true in the semiconductor space, which has been hit hard in 2019 but has shown signs of bottoming and reversing course over the past few months. That's great news for Intel, whose data-centric business has been hit hard by slowing semiconductor demand over the past few quarters. But, much like the broader semiconductor space, Intel's data-centric business rebounded in a big way last quarter. That has sparked a 22% rally in INTC stock since early September.History says this is more than head-fake. Usually, if demand rebounds for several months following a multi-month streak of declines, it is the beginning of a big rebound in the semiconductor space. That's exactly what we have today. Thus, over the next few quarters, semiconductor demand should continue to bounce back, and so will Intel's data-centric business and INTC stock. General Electric (GE)Source: Jonathan Weiss / Shutterstock.com Percent Return Since September: 40%Next, we have beaten-up global industrial giant General Electric (NYSE:GE), which appears to be in the first few innings of staging a big comeback.GE stock is up 40% since early September. That's the biggest and most convincing rally this stock has staged in recent memory. Is it for real? Will the strength last?Yes and yes, because this recovery is supported by internal and external improvements which should persist. On the internal front, management continues to do everything right to get GE back on track. The company is paying off debt and reducing leverage on the balance sheet, divesting non-core businesses and simplifying the business model, and cutting costs where necessary to improve profitability. Management has said that they will continue to do all these things until profit trends improve in a big way. * 10 Cheap Stocks to Buy Under $10 Meanwhile, on the external front, easing trade tensions are providing a lift to corporate confidence levels around the globe. This lift in confidence should provide a boost to presently depressed capital spending trends. As those spending trends rebound, GE's numbers should improve, since this company is built on the back of industrial capital spending. At the same time, yields are moving higher, and that will help push this still relatively cheap stock higher. CVS (CVS)Source: QualityHD / Shutterstock.com Percent Return Since September: 23%Specialty pharmacy retailer CVS (NYSE:CVS) has regained its groove over the past few months and should stay on a winning path for the next few months, too.CVS stock is a value stock. At 10.6-times forward earnings with a 2.7% yield, this is the exact type of low-multiple, big-yield stock that investors think of when they think of value stocks. Thus, as value stocks continue to work thanks to rising yields, CVS stock should continue to work, too.Meanwhile, the fundamentals here are also improving. For a long time, this was just another stagnant, non-innovative pharmacy retailer with sluggish traffic, sales and profit trends. But, CVS is finally starting to innovate across multiple verticals, including rolling out localized healthcare HealthHUB locations. This innovation is powering a rebound in the company's sluggish traffic, sales and profit trends. So long as this rebound persists, investors will continue to push CVS stock higher against a favorable value stock backdrop.A favorable backdrop and favorable fundamental improvements should continue to push CVS stock higher. AT&T (T)Source: Jonathan Weiss / Shutterstock.com Percent Return Since September: 7%Often considered the king of deep value stocks, telecom giant AT&T (NYSE:T) should naturally be a winner as yields rise and value stocks move higher.There are two pieces to the bull thesis here. First, at almost 11-times forward earnings and with a 5%-plus dividend yield, AT&T stock is a prototypical deep value stock with a small multiple and a big yield. Those stocks tend to do well when yields move higher. AT&T stock is no exception. It's up 7% since yields started powering higher in early September. This strength should persist so long as yields keep grinding higher.Second, AT&T's fundamentals are set to meaningfully improve in 2020. For the past several years, AT&T has been plagued by cord-cutting trends in its video business. This has weighed on revenues and profits, and ultimately kept T stock stuck in neutral from 2015 through 2018. But, AT&T is set to launch a new streaming service in 2020, HBO Max, and this new streaming service should help the company offset its cord-cutting problem with streaming subscriber adds. * 9 Tantalizing Dividend Stocks for 2020 This should provide a nice boost for T stock. Just look at what happened to Disney (NYSE:DIS). This, too, is a company which has been mired in cord-cutting headwinds over the past few years. But, Disney launched a new streaming service in 2019, and early success of that streaming service has pushed DIS stock 35% higher year-to-date to all-time highs.The same could happen to AT&T stock in 2020. Skechers (SKX)Source: ThamKC / Shutterstock.com Percent Return Since September: 25%Last, but not least, on this list of strong value stocks to buy as yields rise is athletic apparel maker Skechers (NYSE:SKX).For all intents and purposes, Skechers is a growth company. Just look at the numbers. Constant-currency revenues rose 17.2% last quarter, paced by a 25.7% gain in the international business. Comparable-store sales rose 7.7% in the quarter. Gross and operating margins expanded. And, last quarter wasn't an anomaly. Since the start of 2018, Skechers' average constant-currency revenue growth rate has been above 12%. The international business has averaged about 20% growth, comps have averaged about 4% and margins have consistently powered higher.In other words, the numbers says Skechers is a growth company. But, SKX stock doesn't trade like a growth stock. It trades like a value stock.The forward earnings multiple on SKX stock? Just 15.6. That's below the apparel sector's average forward earnings multiple of 19, the consumer discretionary sector's average forward multiple of 22 and the footwear sector's average forward multiple of 28. It's also well below where both peers Under Armour (NYSE:UA, NYSE:UAA) and Nike (NYSE:NKE) trade, and yet, Skechers is growing at a faster pace than both of those companies.Broadly, then, Skechers is a growth company trading at a value stock valuation. That discrepancy implies a favorable risk-reward profile for bulls, especially in an environment where value stocks are set to move higher.As of this writing, Luke Lango was long INTC, GE, CVS, T, DIS, SKX and NKE. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Companies Using Artificial Intelligence to Outperform the Market * 7 Earnings Reports to Watch Next Week * 6 Retail Stocks Dropping Hard Ahead of Black Friday The post 5 Strong Value Stocks to Buy As Treasury Yields Rise appeared first on InvestorPlace.
AM Best has affirmed the Financial Strength Rating of A and the Long-Term Issuer Credit Ratings of “a” of Aetna Life Insurance Company and the other operating entities of Aetna Inc.
Most U.S. companies that pay dividends do it quarterly, or once every 90 days or so (foreign firms usually pay but once or twice a year). If your income stocks are on the same schedule, your payments will come much less regularly than, say, your relentless gas and electric bills.That's why many retirees and other dividend fans try to arrange matters so the income arrives more frequently. You can easily assemble a set of excellent dividend stocks with staggered pay dates. That's the idea of our Dividend-a-Month portfolio, assembled by the editors of Kiplinger's Investing for Income: cash every month, without interruption. You can play the calendar without dabbling in questionable stocks or worrying about the reliability of dividends.As a practical matter, note two key dates for dividend stocks. One is the "record date," the deadline to be a shareholder so you get the next payment. The record date is usually three to six weeks before the "payment date," which is when the dollars should appear in your brokerage account. We're using the actual arrival of the payment to match companies with their months. SEE ALSO: 14 High-Yield Dividend Stocks to Buy for the 4% Rule