CVS - CVS Health Corporation
| Previous Close | 72.00 |
| Open | 71.98 |
| Bid | 71.36 x 1100 |
| Ask | 71.50 x 2900 |
| Day's Range | 70.26 - 72.03 |
| 52 Week Range | 51.72 - 77.03 |
| Volume | 7,655,114 |
| Avg. Volume | 6,534,368 |
| Market Cap | 92.85B |
| Beta (5Y Monthly) | 0.90 |
| PE Ratio (TTM) | 14.05 |
| EPS (TTM) | 5.08 |
| Earnings Date | Apr 28, 2020 - May 03, 2020 |
| Forward Dividend & Yield | 2.00 (2.80%) |
| Ex-Dividend Date | Jan 21, 2020 |
| 1y Target Est | 83.21 |
Reuters VideosHigher drug prices lift CVS results
CVS posted a higher-than-expected quarterly profit on Wednesday, saying its drug stores sold more medicines and charged higher prices for branded drugs. The company has been trying to pull in more customers to its outlets by offering services such as chronic care management for diabetes through a pilot program. Revenue shot up nearly 23%, rising across its range of businesses. Higher prescription drug prices also boosted results at its pharmacy benefit management unit, CVS Caremark, that negotiates drug discounts for health insurers and employers. And sales nearly tripled at its health insurance business now that it includes Aetna. CVS completed its acquisition of Aetna in November 2018 for $69 billion in the hopes of lowering costs. Shares of CVS are higher in early trading Wednesday.
- GuruFocus.com
Prem Watsa's Top 5 Buys of the 4th Quarter
Canadian investor’s largest new holding is Fitbit Continue reading...
- InvestorPlace
Right Now the Turnaround Hopes for RAD Stock Look Overstated
Shares of struggling pharmacy retail operator Rite Aid (NYSE:RAD) have sprung back to life in a big way over the past few months, as investors are growing more optimistic on the company's turnaround plans, but RAD stock still has some hurdles to clear.Source: Michael Gordon / Shutterstock.com Specifically, Rite Aid reported blowout third-quarter numbers in late December that included positive revenue growth for the first time in a year, and profit margin expansion for the first time in several years.InvestorPlace - Stock Market News, Stock Advice & Trading TipsInvestors extrapolated from the uniquely positive results that new management's turnaround initiatives are starting to take hold. RAD stock nearly tripled from $8 to over $20 in just a few days.But, when it comes to this big rally in Rite Aid stock, I'd tread carefully.Although Rite Aid's third-quarter numbers were better than usual, they still weren't good. Revenues and margins barely rose. And, while management is doing the right things to stabilize sales and margins, the company is cash-strapped. Further changes will be executed with limited resources. That's not a recipe for success, especially when competitors CVS (NYSE:CVS) and Walgreens (NASDAQ:WBA) have far more resources. * 20 Stocks to Buy From the Law of Accelerating Returns It's also concerning that CVS appears to be firing on all cylinders with its new HealthHUBs. That presumably means CVS is stealing traffic from Rite Aid. At the same time, it's concerning that Rite Aid stock trades at 50-times next year's earnings estimates. That's a huge multiple for a struggling pharmacy retail stock.In other words, a lot of turnaround hope is priced into shares, and I'm not sure all that hope is warranted. Rite Aid Still Has ProblemsRite Aid's problems didn't just disappear because the company reported positive revenue growth and margin expansion in its third-quarter earnings report.Sure, the new management team is doing everything they should be doing, which is changing the company from head-to-toe. They are revamping stores, overhauling the company's digital operations, expanding omnichannel capabilities, improving pharmacist-client relations, and expanding an in-store-pickup partnership with Amazon (NASDAQ:AMZN). These changes are working.But, even with all those changes, revenues rose just 0.2% year-over-year, while profit margins expanded less than 30 basis points. Next quarter, revenues are expected to rise by more than 1%. But, profit margins are expected to compress.And that's the big problem with Rite Aid. For years, this company has slid into retail pharmacy irrelevancy. In order to spring back into relevancy and drive positive revenue growth, the company is going to have to make some big changes and investments.That requires a lot of cash, which Rite Aid doesn't have much of (only $290 million in cash on the balance sheet, with negative cash flows over the past 12 months). It also requires an increase in opex, which means Rite Aid's margins will likely go back to falling over the next few quarters.So, going forward, Rite Aid is going to have to cut into its already cash-strapped balance sheet and pull down its already low-profit margins. There's no guarantee that these changes will drive positive sales growth. And, any sales growth they do drive, will likely be very mild.Big picture -- this is a slow turnaround on unsure footing. But, you would never guess that by looking at Rite Aid stock. Rite Aid Stock Is ExpensiveAccording to Wall Street consensus estimates, Rite Aid projects to do about 28 cents in earnings per share in fiscal 2021 (calendar 2020). Rite Aid stock presently trades hands at $13.50. That means this stock is trading at nearly 50-times next year's earnings estimates.That's a huge multiple. According to Yardeni Research, drug retail stocks normally trade around 9-times forward earnings. Clearly, a lot of optimism regarding management's ability to turn this sinking ship around is priced into the stock.That optimism appears misplaced. This turnaround is moving at a snail's pace. It's fueled by big investments, yet management doesn't have enough resources to keep funding big investments. Competitors have a ton of momentum right now, and much deeper pockets to accelerate that momentum. Margin headwinds are projected to stick around for at least the next few quarters.Overall, this doesn't feel like a stock that should be trading at 50-times next year's earnings estimates. So, from a valuation perspective alone, I'd caution against chasing the recent rally in Rite Aid stock. Bottom Line on RAD StockThings are getting better at Rite Aid. But not that much better. This is a specialty pharmacy retailer that should be able to stabilize sales and margins over the next few years. But, what's priced into the stock at this point in time is so much more than that, and that makes shares unnecessarily risky at current levels.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 * 20 Stocks to Buy From the Law of Accelerating Returns * 10 Strong Lottery Ticket Stocks That Could Soar in 2020 * 7 U.S. Stocks to Buy on Coronavirus Weakness The post Right Now the Turnaround Hopes for RAD Stock Look Overstated appeared first on InvestorPlace.
- InvestorPlace
Income and Growth Investors Will Benefit as CVS Adopts Managed Care
It's never easy to marry companies that seem to exist in different industries. This is especially true if a buyer is on what looks like the "failing" side of the equation.Source: Jonathan Weiss / Shutterstock.com That's the case for CVS Health (NYSE:CVS).Net income of $1.7 billion, $1.73 per share, on revenue of $66.9 billion beat analyst estimates by 5 cents per share. Those numbers even beat the company's own projections.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThis didn't cause investors to rush into the stock. That's because results from other health insurers, most notably UnitedHealth Group (NYSE:UNH), looked better. The jury is still out, one reporter wrote, on whether combining a company that takes healthcare premiums with one that sells healthcare services makes sense.No, it isn't. Could be WalgreensDon't compare CVS to UNH, which has been walking down the managed care road for years, or Centene (NYSE:CNC), built to serve Medicare and Medicaid patients. Compare it to Walgreens Boots Alliance (NASDAQ:WBA), the other major drug store chain. * 20 Stocks to Buy From the Law of Accelerating Returns There's no comparison. Over the last year CVS stock is up 8.6%, mid-way between the gains of UNH and CNC. Walgreens is down 25.1%.Cynics will say CVS' results only looked good because it sold more drugs and charged higher prices for branded drugs. They will say CVS only bought Aetna, a major health insurer, for $69 billion to lower its costs.But CVS didn't buy Aetna to lower drug costs. CVS bought Aetna so it could match the income from premiums to the outgo of healthcare spending. The income is now starting to flow. Revenue for the entire company was up 32% over a year ago, representing Aetna premiums. The shift of claims into CVS is still ongoing.There are other benefits to CVS from getting into insurance. The repeal of the Health Insurance Fee (HIF) will flow through to CVS, through Aetna. More to ComeWhat remains to be seen is how competitive Aetna can be, now that more benefits are being served through CVS stores. CVS MinuteClinics can now handle 80% of what a primary care physician can treat, often with no copay or reduced costs.CVS is building on that by turning 1,500 stores into HeathHUBs, selling services as well as products. The plan is for the new stores to add incremental business from Walgreens. It also makes Aetna more attractive, by lowering out-of-pocket costs. Stores that have converted to the new format outperform traditional CVS stores, the company said on its conference call.CVS is now projecting earnings between $7.04 and $7.17 per share in 2020. Based on the stock's Feb. 13 opening price of $73.45, that's a forward price-to-earnings ratio of barely 10. The 50 cent per share dividend also pays a yield of 2.7%. By way of comparison, the yield on UNH is 1.5%. The Bottom Line on CVS StockIt's true that CVS is trying to become more like UnitedHealth. It's becoming less like Walgreens. CVS is aiming to be a low-cost leader in managed care for the private insurance market.That's good news for both income and growth investors.For income investors, you're already getting a better yield on a new CVS investment than on any managed care stock. For growth investors, you are still getting in early on the transition.Managed care is the model for all insurers going forward. This is true whether they're taking money from government, corporations or individuals. You can't have an unlimited draw from a limited pool of funds. That's the road CVS Health has embarked on.Dana Blankenhorn is a financial and technology journalist. His latest book is Technology's Big Bang: Yesterday, Today and Tomorrow with Moore's Law, essays on technology available at the Amazon Kindle store. Follow him on Twitter at @danablankenhorn. As of this writing he owned shares in CVS. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 20 Stocks to Buy From the Law of Accelerating Returns * 10 Strong Lottery Ticket Stocks That Could Soar in 2020 * 7 U.S. Stocks to Buy on Coronavirus Weakness The post Income and Growth Investors Will Benefit as CVS Adopts Managed Care appeared first on InvestorPlace.
- American City Business Journals
Aetna protests award of D.C. health care contract to CareFirst
The protest alleges that CareFirst “failed to meet critical requirements” of an RFP because it doesn't include some infertility treatments.
- PR Newswire
Aetna Medicaid Launches New Approach To Integrated Care Supporting Children And Their Families
Aetna Medicaid, a CVS Health company (NYSE: CVS), today announced the launch of its Child and Family Welfare (CFW) training model. This new resource leverages a whole-person, whole-family approach to physical, behavioral and social well-being for all children and families involved with Child Protection Systems. Additionally, it emphasizes primary prevention and early intervention benefits across a variety of issues.
- Thomson Reuters StreetEvents
Edited Transcript of CVS earnings conference call or presentation 12-Feb-20 1:00pm GMT
Q4 2019 CVS Health Corp Earnings Call
- InvestorPlace
5 Top Stock Trades for Thursday: MU, LYFT, SHOP, CVS, CYBR
U.S. stocks again pushed to new highs on Wednesday, as equities continue to race higher despite coronavirus worries. That said, let's look at a few top stock trades for Thursday. Top Stock Trades for Tomorrow No. 1: Micron (MU) Click to Enlarge Source: Chart courtesy of StockCharts.comOne of investors' favorite chip stocks continues to plow higher. As Micron (NASDAQ:MU) stock climbs, it's now hitting new 52-week highs. The only thing left? Taking out its highs from 2018.Shares are coming into a tough resistance zone near $61, but over that mark puts the March 2018 high of $63.42 and the May 2018 high of $64.66 on the table. Over those marks, and MU stock may continue to gain momentum.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 U.S. Stocks to Buy on Coronavirus Weakness On a pullback, bulls will want to see the 10-week moving average hold as support. Below that puts the $52.50 level on watch. A further drop, and the 50-week moving average and uptrend support (blue line) will be on the table. Top Stock Trades for Tomorrow No. 2: Lyft (LYFT) Click to Enlarge Source: Chart courtesy of StockCharts.comAfter Uber (NYSE:UBER) ripped higher on better-than-expected results last week, Lyft (NASDAQ:LYFT) just couldn't deliver. That's too bad, as bulls were bidding shares higher in hopes of an inspiring quarter.Now, the stock is below the key $50 level, as well as the newly established 200-day moving average. If Lyft can reclaim these two marks, it puts the pre-earnings high on the table.On the downside, bulls would like to see the 50-day moving average currently near $47 hold as support. However, the must-hold mark is the 100-day moving average and uptrend support (blue line) near $45. Below puts the 2020 lows on the table around $42.50. Top Stock Trades for Tomorrow No. 3: Shopify (SHOP) Click to Enlarge Source: Chart courtesy of StockCharts.comMan, Shopify (NYSE:SHOP) continues to blow the roof off, with its latest earnings report propelling the stock to nearly $600 earlier! However, the stock is being met with sellers. What gives?I would guess it's a few things. First, the valuation here is very high, causing some investors to take some chips off the table even on solid results. Second, anyone who bought in the fourth quarter is sitting on massive short-term gains. That's likely triggering some profit-taking, too.In any regard, we need to see where SHOP finds its footing here. North of $500 still bodes well for the bull case, although shedding almost all of its post-earnings gains would be discouraging for obvious reasons. * 7 Smart Blue-Chip Stocks to Buy Now Let's see if SHOP can hold the $550 mark. Once we have a day-range to trade against, investors can either play for retest of the highs or a break of Wednesday's low, which will likely fill more of the recent gap. Top Stock Trades for Tomorrow No. 4: CVS Health (CVS) Click to Enlarge Source: Chart courtesy of StockCharts.comCVS Health (NYSE:CVS) is having a mild reaction to its earnings results, but there are still some positives on the weekly chart.Going back to late 2016, one can see that the 200-week moving average has been resistance for quite some time (purple arrows). In Q4 2019, CVS broke out over this mark -- and while it did fall back below it earlier this month, CVS reclaimed the 200-week moving average and continues to hold it as support (blue circle).In its post-earnings action, shares are testing into the recent range highs. Now, see how CVS handles the $77.50 area. This too has been multi-year resistance. Over it, though, and $80-plus is possible.If $77.50 holds as resistance, and/or CVS goes through a pullback, I want to see the 200-week moving average and uptrend support (blue line) hold as support. Top Stock Trades for Tomorrow No. 5: CyberArk (CYBR) Click to Enlarge Source: Chart courtesy of StockCharts.comIn late 2019 and early 2020, CyberArk Software (NASDAQ:CYBR) put together nine consecutive gains, as shares rose from $117 to $140. From there, it formed a tight range between $137.50 and $142.50.Unfortunately for bulls, that range is resolving lower -- gapping below uptrend support (blue line) and the 50-day moving average. Now losing the 200-day moving average, CYBR stock is trying to hold the 100-day moving average.Below the latter does not bode well for the bulls, as CYBR is clearly losing the momentum battle. Back over the 200-day moving average, and perhaps CyberArk can rally back to the 50-day moving average. Below Wednesday's low, however, and $110 or lower could be possible.Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 U.S. Stocks to Buy on Coronavirus Weakness * 7 Smart Blue-Chip Stocks to Buy Now * 7 Low-Volatility Stocks to Buy In Jittery Times The post 5 Top Stock Trades for Thursday: MU, LYFT, SHOP, CVS, CYBR appeared first on InvestorPlace.
- Bloomberg
CVS Executive Shift Puts Company Veteran at Helm of Biggest Unit
(Bloomberg) -- CVS Health Corp. shook up its senior management ranks, putting a company veteran in charge of its pharmacy-benefit management business, less than two years after bringing on a longtime pharmaceutical executive to run it.The company said in a statement Wednesday that Alan Lotvin had been named president of CVS Caremark, taking the reins from Derica Rice, who will depart CVS. Rice, a former Eli Lilly & Co. executive who joined the company in 2018, will remain through this month to help ensure a smooth transition.The move puts one of Chief Executive Officer Larry Merlo’s most trusted lieutenants at the helm of CVS’s largest division. Lotvin has been with CVS since 2012, and in recent years had been charged with transforming the company after it acquired Aetna for $67 billion in its largest-ever takeover.Rice’s departure had been in the works for “some time” before the announcement, Merlo said in an interview. Merlo said the role of CVS’s pharmacy-services business is changing and Lotvin has “deep experience” in the space.The change reflects “the deep and talented bench that’s resonant within CVS Health,” Merlo said. “Quite frankly, I think that’s the story here, the talent that’s resonant across the organization.”The Aetna deal was premised in part on the idea that CVS could transform its drugstores into centers where patients could receive basic care and pick up prescriptions, driving down health costs. But CVS shares have languished since the transaction closed in late 2018, with investors wary of the effects of political wrangling over drug prices, as well as the overall growth prospects of the combined company.Rice’s departure followed news last week that former Aetna CEO Mark Bertolini had stepped down from CVS’s board. Bertolini said he had offered to remain a director past his current term, but wasn’t renominated. And Kevin Hourican, who led CVS’s retail-pharmacy business, left last month to become CEO of food-service company Sysco. Hourican joined CVS in 2012 from Macy’s.Other notable Aetna alumni have also departed recently, including former Chief Technology Officer Claus Torp Jensen, who left for Memorial Sloan Kettering in October. But some of the insurer’s most visible leaders remain, including Karen Lynch, who is president of the business, and Rick Jelinek, who’s leading the integration. And CVS said Wednesday it promoted Aetna’s Jonathan Mayhew to executive vice president of transformation, a role previously occupied by Lotvin.“As you look at talent within the organization, the Aetna operating team is largely intact, so there has not been a large exodus of the company,” Merlo said. “I’m very pleased with how the two organizations and the culture of the organizations is coming together.”Shares of CVS were down 1.2% at $72.94 at 2:10 p.m. in New York.The company also projected better-than-expected revenue for the year and posted stronger-than-forecast fourth-quarter results. In an investor presentation, CVS said it expects 2020 revenue of $261.97 billion to $265.48 billion, above the average Wall Street forecast of $256.89 billion. The pharmacy-services business is expected to be a critical plank of that growth, with projected 2020 sales of $137.50 billion to $139.45 billion.To contact the reporter on this story: Angelica LaVito in New York at alavito@bloomberg.netTo contact the editors responsible for this story: Drew Armstrong at darmstrong17@bloomberg.net, Timothy AnnettFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
- GuruFocus.com
CVS Health Shares Gain on Strong 4th Quarter
Aetna acquisition contributes to earnings and revenue beat Continue reading...
- Reuters
CVS profit beats estimates; will hold off on new major deals
The company, which acquired health insurer Aetna for $69 billion in 2018, is not planning further major deals until it has completed the Aetna integration and reduced the debt load it took on, Chief Executive Larry Merlo told Reuters in an interview. Aetna revenue nearly tripled in the quarter from a year ago to $17.15 billion.
- TheStreet.com
CVS Health Up on Earnings but Charts Provide Warnings
Sell CVS Health on strength to its monthly risky level at $77.84. The weekly chart shows a declining 12x3x3 weekly slow stochastic reading, which warns that recent price gains could consolidate.
- Zacks
CVS Health (CVS) Q4 Earnings Top Estimates, Margins Improve
CVS Health (CVS) registers strong growth in Pharmacy Services, benefiting from the upside in specialty services.
- Zacks
Shopify, CVS Outperform in Q4, Plus COVID-19 Update
Shopify (SHOP) impressed investors with a big beat on both top and bottom lines: 43 cents per share versus 23 cents expected, on $505.2 million which easily surpassed the Zacks consensus $482.3 million.
- Investor's Business Daily
Dow Jones Hits Record Highs On Coronavirus Update; Big Earnings Movers Include CyberArk, Lyft, Shopify
The major stock indexes were broadly higher Wednesday morning on updated coronavirus figures. Shopify stock soared 15% on earnings.
- Investor's Business Daily
Dow Jones Today, Stocks Pop As Coronavirus Slows; Shopify, CVS Health, Akamai Rise On Earnings
Earnings news sent CVS Health and Shopify higher, while Visa led the Dow Jones as the slowing spread of China's virus boosted global markets.
- TheStreet.com
How Aetna and Strong Volumes Drove CVS Earnings Beat
Aetna revenue is looking strong. Plus, amid some price pressure in one segment, CVS sales volumes took hold.
- Barrons.com
CVS Stock Jumped After Strong Earnings. Here Are the Key Points.
Shares of (CVS)were up 2% in premarket trading on Wednesday after the company reported earnings that surpassed analysts’ expectations. CVS (ticker: CVS) reported earnings of $1.73 per share for the fourth quarter of 2019, beating the $1.68 per share that FactSet said Wall Street expected. The company said it believes adjusted earnings per share will come in between $7.04 and $7.17 in 2020.
- Reuters
US STOCKS-Wall St set for higher open as new coronavirus cases drop
Wall Street was set to open near record highs on Wednesday after a drop in the number of new cases of coronavirus infections in China raised hopes that the economic fallout from the outbreak would be contained. China on Wednesday reported its lowest number of new coronavirus cases since January, lending weight to a prediction by its top medical adviser for the outbreak to end by April, even as the death toll in the country rose to more than 1,100 people.
- Zacks
CVS Health (CVS) Surpasses Q4 Earnings and Revenue Estimates
CVS Health (CVS) delivered earnings and revenue surprises of 2.98% and 4.16%, respectively, for the quarter ended December 2019. Do the numbers hold clues to what lies ahead for the stock?
- PR Newswire
CVS Health Announces Changes to Support Innovation and Growth
CVS Health (NYSE: CVS) today announced a series of leadership assignments to support the company's continued focus on innovation and strategic growth.
- MarketWatch
CVS Health's stock turns higher after profit and revenue beats
Shares of CVS Health Corp. rose 1.3% in premarket tradiong Wednesday, reversing an earlier decline, after the drug store chain reported fourth-quarter profit and revenue that beat expectations. The company swung to net income of $1.75 billion, or $1.33 a share, from a net loss of $419 million, or 37 cents a share, in the year-ago period. Excluding non-recurring items, such as items related to the Aetna acquisition, adjusted earnings per share fell to $1.73 from $2.14, but was above the FactSet consensus of $1.68. Total revenue rose 22.9% top $66.89 billion, beating the FactSet consensus of $63.93 billion. Pharmacy Services revenue grew 6.2% to $37.07 billion to top the FactSet consensus of $33.63 billion; retail and long-term care revenue increased 2.5% to $22.58 billion, above expectations of $22.33 billion; and health care benefits revenue climbed 175% to $17.15 billion to beat expectations of $16.94 billion. For 2020, CVS expects adjusted EPS of $7.04 to $7.17, surrounding the FactSet consensus of $7.15. The stock, which had run up 10% amid a 6-day win streak through Tuesday, had gained 2.1% over the past three months, while the S&P 500 had rallied 8.6%.
- TheStreet.com
CVS Health Tops Q4 Earnings Forecast, Gives Tepid 2020 Guidance
CVS Health sees 2020 earnings in the range of $7.04 to $7.14 per share, just shy of Wall Street forecasts.
