46.25 +0.49 (1.07%)
After hours: 4:14PM EST
|Bid||45.80 x 1000|
|Ask||45.81 x 800|
|Day's Range||44.61 - 45.89|
|52 Week Range||44.61 - 71.18|
|Beta (5Y Monthly)||0.86|
|PE Ratio (TTM)||11.22|
|Earnings Date||Mar 30, 2020 - Apr 05, 2020|
|Forward Dividend & Yield||1.83 (3.96%)|
|Ex-Dividend Date||Feb 17, 2020|
|1y Target Est||55.56|
DOW UPDATE The Dow Jones Industrial Average is climbing Wednesday afternoon with shares of Pfizer and 3M leading the way for the blue-chip average. Shares of Pfizer (PFE) and 3M (MMM) have contributed to the index's intraday rally, as the Dow (DJIA) is trading 162 points (0.
DOW UPDATE The Dow Jones Industrial Average is rallying Wednesday morning with shares of 3M and Apple Inc. delivering strong returns for the price-weighted average. Shares of 3M (MMM) and Apple Inc. (AAPL) are contributing about a third of the blue-chip gauge's intraday rally, as the Dow (DJIA) is trading 314 points, or 1.
DOW UPDATE Behind strong returns for shares of Walgreens Boots and Microsoft, the Dow Jones Industrial Average is rallying Wednesday morning. Shares of Walgreens Boots (WBA) and Microsoft (MSFT) have contributed to the blue-chip gauge's intraday rally, as the Dow (DJIA) was most recently trading 302 points (1.
Back-to-back sharp selloffs for stock has sent the number of new 52-week lows on the NYSE spiking to a 14-month high. The Dow Jones Industrial Average tumbled 907 points, or 3.2%, with all 30 components lowing ground in afternoon trading Tuesday, after plunging 1,032 points, or 3.6%, on Monday. New lows on the NYSE rose to 371 from Monday's 243. That's the most new lows since it reached 791 on Dec. 26, 2018. Meanwhile, the new highs fell to 79 from 93 on Monday, meaning the new lows outnumbered new highs by 292, the biggest spread since it hit 344 on Dec. 27, 2018. Within the Dow, six stocks hit new lows Tuesday and no stocks hit new highs. The new lows were shares of Pfizer Inc. , Walgreens Boots Alliance Inc. , Exxon Mobil Corp. , 3M Co. , Cisco Systems Inc. and Chevron Corp. .
DOW UPDATE Shares of UnitedHealth and American Express are seeing declines Monday afternoon, sending the Dow Jones Industrial Average into a slump. Shares of UnitedHealth (UNH) and American Express (AXP) have contributed to the index's intraday decline, as the Dow (DJIA) was most recently trading 959 points, or 3.
The U.S. Supreme Court on Monday handed a victory to Walgreens, turning away an appeal by a fired former Florida employee of the pharmacy chain who asked not to work on Saturdays for religious reasons as a member of the Seventh-day Adventist Church. The justices declined to review a lower court ruling in Darrell Patterson's religious discrimination lawsuit that concluded that his demand to never work on Saturday, observed as the Sabbath by Seventh-day Adventists, placed an undue hardship on Walgreens. Patterson, who had trained customer service representatives at a Walgreens call center in Orlando, was fired in 2011 after failing to show up for work on a Saturday for an urgent training session.
Corporate executives at Walgreens knew of complaints from pharmacy employees that high stress levels on the job had led to some errors in filling prescriptions, but removed the findings from a presentation, according to the New York Times.
(Bloomberg) -- Over decades of dealmaking, Stefano Pessina turned his family’s Italian wholesale pharmaceutical business into the largest retail pharmacy in the U.S. and Europe.Now filings show how a trio of tax havens support the significant wealth the chief executive officer of Walgreens Boots Alliance Inc. has amassed in that time.Pessina, who lives in Monaco, dissolved a Luxembourg company that controlled his stake in Walgreens and replaced it with a new one. He controls that entity through another based in the Cayman Islands, according to filings last month.He owns more than 16% of the Deerfield, Illinois-based retail pharmacy, which makes up the bulk of his $10.2 billion fortune, according to the Bloomberg Billionaires Index.“This is a perfect example of someone doing everything they can to use the tax haven regime to protect their wealth,” said Richard Murphy, professor of international political economy at City University of London.Pessina declined to comment through a Walgreens spokesperson.Complex LengthsPessina’s holding company in the Cayman Islands was set up more than a decade ago, but the extent of the structure has only recently become clearer.The disclosures illustrate the lengths many of the world’s richest people go to manage and protect their wealth. Two years ago, four Chinese tycoons transferred more than $17 billion into family trusts with the ownership structures involving various Caribbean jurisdictions. Tina Green, who lives in Monaco and is married to U.K. retailer Philip Green, received a 1.2 billion pound ($1.5 billion) dividend from the couple’s holding company that went untaxed.Pessina, 78, is a citizen and long-term resident of Monaco, where inhabitants don’t pay annual property, capital gains or council taxes. It’s a similar situation in the Cayman Islands, which has no direct tax regime. Last year, the International Monetary Fund singled out Luxembourg as a global center for “empty corporate shells” because of the amount of foreign investment.There’s nothing empty about Pessina’s Luxembourg companies, with the one holding his stake reporting assets of more than 6 billion euros ($6.5 billion) at the end of 2018.Wealthy individuals often have legitimate reasons for using offshore tax havens. U.S. hedge funds and other money managers pool assets into Cayman Islands master funds to reduce financial and administrative costs. They can also offer protection against unstable political regimes in investors’ home countries.Tax HavenOn the flip side, the lack of transparency has made some of these jurisdictions accommodating places for kleptocrats, drug traffickers and money launderers to stash ill-gotten gains. This week, the European Union added the Cayman Islands to its tax haven blacklist, leaving the British overseas territory facing reputational damage and higher scrutiny over financial transactions.The Cayman Islands government said Tuesday it has begun the process to be removed from the list as early as this year. Pessina’s holding company -- Alliance Participations Ltd. -- falls outside the scope of the EU’s issue with the Cayman Islands, which focuses on investment funds in the territory.Other nations on the EU blacklist include Panama and the U.S. Virgin Islands, where the late financier and sex offender Jeffrey Epstein owned an island.Pessina is the largest shareholder in Walgreens and has received more than $1.5 billion in dividends through his career, according to Bloomberg’s wealth index. He’s one of Monaco’s richest residents and has hobnobbed over the years with royalty and fellow billionaires visiting the city-state.Cayman TrustPessina’s Monaco citizenship lessens his need to focus on taxes, but there are still potential perks to his offshore set-up. Luxembourg has generous exemptions for the proceeds of liquidated companies, while the Cayman Islands has no withholding tax on dividends. Pessina’s native Italy applies tax rates of as much as 26% for such windfalls, according to accounting firm KPMG.Alliance Participations, established in 2006, has only been mentioned previously in a handful of filings unrelated to Pessina’s holdings. Filings last decade also disclose a trust affiliated with Pessina in the Cayman Islands, where his long-term partner and Walgreens co-Chief Operating Officer Ornella Barra has a separate holding company.Pessina previously ran Alliance Boots, which he acquired with KKR & Co. in 2007. The transaction came at the height of the buyout boom and underscored the difficulty of financing jumbo take-private deals, as banks struggled to find buyers for the loans to pay for the transaction.More recently, Walgreens was approached by KKR about a potential deal to take the company private in what would be the largest leveraged buyout in history, Bloomberg reported in November. Pessina and the company have declined to comment on any talks.To contact the reporter on this story: Ben Stupples in London at email@example.comTo contact the editors responsible for this story: Pierre Paulden at firstname.lastname@example.org, Steven Crabill, Peter EichenbaumFor 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.
After General Electric's (NYSE:GE) wretched performance from 2016 through 2018, those who chose to invest in GE stock in 2019 probably made out pretty well. GE delivered a solid performance, gaining over 53% in value for the year. And it hasn't run out of steam yet -- so far in 2020, GE stock is up almost 15%. The apparent turnaround in the company's fortune has caught the attention of analysts, many of whom are feeling quite bullish.Source: testing / Shutterstock.com And what's more, one of Canada's largest investment agencies significantly increased its holdings in GE during the last quarter of 2019.Given what General Electric has been doing for the past year, is now the time to consider GE stock for your own portfolio?InvestorPlace - Stock Market News, Stock Advice & Trading Tips Three Brutal Years for GE InvestorsGeneral Electric has been around for nearly 130 years and it has grown to have many lines of business. So it's not surprising that the company has had its ups and downs -- as has GE stock. Since 2000, GE has had a particularly tumultuous run, and the period between 2016 and 2018 was especially tough on investors. * 7 'Strong Buy' Stocks With Over 50% Upside Potential The headlines from that time told the story: "GE Shares Drop to 9-Year Low as Weak Power Business Stumbles," "How GE Went From American Icon to Astonishing Mess," "What the Hell Happened at GE?" and from InvestorPlace's Lawrence Myers, "The Disaster That is General Electric Company Stock."In 2018 alone, General Electric lost $90 billion in market value. Adding insult to injury, GE -- the last remaining original member of the Dow Jones Industrial Average -- got the boot. After more than a century in the index, its spot was taken by Walgreens Boots Alliance (NASDAQ:WBA). BCI Ups Its Investment in GEWhile General Electric was clearly in trouble, there was one positive sign in the fall of 2018. The company hired a new CEO. In October of that year, Larry Culp became CEO of General Electric -- the first company outsider to hold that position -- and he had a turnaround plan.As Culp began to put that plan into action, GE still had further to drop (it was trading in the $7 range by December 2018), however in 2019 GE stock began to recover. Its growth of over 54% for the year got the attention of investors. As reported by Barron's, one of those investors was British Columbia Investment Management (BCI). The agency that manages the Canadian province's public assets had a portfolio worth 153.4 billion CAD in 2019. And BCI made the call in the fourth quarter to buy another 677,8722 shares of GE, increasing its stake in the company to 2.1 million shares.BCI describes its investment strategy:"We are driven by long-term considerations. As our clients have obligations that extend beyond 70 years, we invest in quality assets and stable companies with the potential to appreciate in value and provide reliable cash flows in the years to come." In other words, this is not an agency that's prone to gambling on dicey stocks. Bottom Line for GE StockGeneral Electric is not out of the woods yet. A year of recovery is a positive sign, but the company has a long way to go to get anywhere near its glory days. Investors today are celebrating the fact that GE stock is close to breaking the $13 ceiling -- and analysts have a $13.91 average 12-month price target for the stock. That's still less than half of what GE was trading for just three years ago.BCI and others that invest now are obviously taking on some risk. However, with General Electric showing signs that Larry Culp's turnaround plan is working, the potential long-term payoff is significant.As of this writing, Brad Moon did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 'Strong Buy' Stocks With Over 50% Upside Potential * 5 Emerging Markets ETFs to Consider as 2020 Rebound Plays * 4 Stocks to Buy No Matter Who Wins the 2020 Election The post Institutional Investors Indicate Better Days Are Ahead for General Electric appeared first on InvestorPlace.
It would be reasonable to expect that after Apple (NASDAQ:AAPL), the largest U.S. company by market value, withdraws its guidance for the current quarter due to the Covid-19 virus, which the iPhone maker did Monday afternoon, that stocks would falter in the wake of that announcement. Actually, the opposite proved to be true as the major indexes averted large losses on Tuesday, the first trading day of the week.Source: Provided by Finviz * The S&P 500 lost 0.29%. * The Dow Jones Industrial Average gave up 0.56%. * The Nasdaq Composite eked out a gain of o.02%. * Although there were some concerns about its earnings report, Walmart (NYSE:WMT) was the best performer on the Dow Jones today gaining 1.34%.Due to the coronavirus, Apple suppliers had to shutter factories in China, which prompted the guidance withdrawal revealed Monday afternoon.InvestorPlace - Stock Market News, Stock Advice & Trading Tips"Work is starting to resume around the country, but we are experiencing a slower return to normal conditions than we had anticipated," said the California-based company in a statement. "As a result, we do not expect to meet the revenue guidance we provided for the March quarter due to two main factors." * 9 Food and Restaurant Stocks to Dine In On The skinny with those two factors is that because those plants have been closed, iPhone 11 supply is being crimped, and because Apple shuttered its retail stores in China due to the coronavirus, demand there is being pinched. However, the company did say demand for its products outside of China remains strong.Obviously, this isn't great news for Apple, but many analysts are betting it's near-term blip. Apple, wasn't even the worst-performing Dow Jones stock today. That dubious distinction belongs to Walgreens (NASDAQ:WBA). Not So GreatGive Walmart some credit. As noted above, it was the best-performing Dow Jones name today despite a tepid fiscal fourth-quarter earnings report and similarly lukewarm guidance. For the fourth quarter, the largest domestic retailer said it earned $1.38 per share on sales of $141.67 billion while Wall Street was expecting earnings of $1.43 on revenue of $142.49 billion. Same-store sales increased 1.9%, below the 2.3% analysts expected.The Arkansas-based company forecast full-year earnings of $5 to $5.15 per share, below the consensus estimate of $5.22.Walmart unveiled a modest dividend hike, but the reason the stock rallied today, if I had to guess, would be the 35% growth in its e-commerce unit last quarter and the forecast of 30% growth for that business this year. Intel InfectedIntel (NASDAQ:INTC) has been a darling stock to start 2020, but with Apple trading lower on supply concerns, chip stocks followed suit. In fact, Intel was one of the worst-performing Dow components in the Dow today, but the reality is it's not highly dependent on Apple or China's Huawei as big revenue drivers.As is the case with Apple, Intel's Tuesday troubles could be short-term in nature as the company remains strong with stout fundamentals. Reasonable ExplanationTravelers Companies (NYSE:TRV) was among the Dow offenders today and it's easy to see why. It was revealed late last Friday Warren Buffett's Berkshire Hathaway (NYSE:BRK.A, NYSE:BRK.B) slashed what was once a 6 million-share stake in Travelers to 312,379 shares. TRV has been a laggard, gaining just over 8% over the past 12 months while the Dow is up more than 15% over that time. Bottom Line on the Dow Jones TodayFor those looking to quantify just how many U.S. companies are mentioning the coronavirus on earnings calls, FactSet puts the number at 364 of the S&P 500 in a note dated Feb. 14, meaning it doesn't include Apple's withdrawal of guidance and what Walmart had to say on the issue earlier today."Of these 364 companies, 138 (38%) cited the term 'coronavirus' during the call," writes FactSet's John Butters. "At the sector level, the Industrials (26), Information Technology (26), and Health Care (24) sectors have seen the highest number of companies discussing 'coronavirus' on earnings calls of all 11 sectors."As of this writing, Todd Shriber did not own any of the aforementioned securities. He has been an InvestorPlace contributor since 2014. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 9 Food and Restaurant Stocks to Dine In On * 7 Micro-Cap Stocks That Could Double * 7 U.S. Stocks to Buy on Coronavirus Weakness The post Dow Jones Today: When Bad News From Apple Isn't All That Bad appeared first on InvestorPlace.
Friday was another mostly listless day for equities, as the major benchmarks spent much of the session searching for direction only to find little of it on a sluggish, light volume day in advance of a long weekend.Source: Provided by Finviz * The S&P 500 gained 0.18%. * The Dow Jones Industrial Average slipped 0.08%. * The Nasdaq Composite added 0.20%. * On light news, International Business Machines (NYSE:IBM) was the worst-performing name in the Dow Jones today. It appears to be a "heat check" kind of day after the stock's recent rally.A stumbling block for broader benchmarks today was investors' preference for defensive sectors, also known as safe havens, such as real estate and utilities. Those are two of the smallest sector weights in the S&P 500 and the Dow features no exposure to those groups. * 7 U.S. Stocks to Buy on Coronavirus Weakness The Commerce Department said today that retail sales increased 0.3% last month, while the December reading was revised down to 0.2% from 0.3%.InvestorPlace - Stock Market News, Stock Advice & Trading Tips"Sales at building material stores jumped 2.1%, the most since last August, after rising 1.3% in December. Sales were likely boosted by unseasonably mild weather," according to CNBC.And there is the explanation for Home Depot (NYSE:HD) being one of the better names in the Dow today, though that's not saying much because in late trading, just 12 Dow stocks were higher and only one, Visa (NYSE:V), was up more than 1%. Legal WranglingsNike (NYSE:NKE) inched up in late trading. Infamous lawyer Michael Avenatti was found guilty of three extortion charges involving the company. He supposedly had evidence that Nike paid amateur basketball players and used that as leverage in attempt to get cash out of Nike.Nike, rightfully so, fought Avenatti the right way -- in a court of law -- and emerged victorious. In other news, the company's newest self-lacing sneaker debuts at some retailers this weekend. Love Is in the AirI'll take a leap of faith and assume that nearly everyone reading this knows today is Valentine's Day. While the retail implications of this particular "holiday" aren't on par with Christmas, it's still worth noting that the National Retail Federation (NRF) is forecasting a 32% jump in spending for the February holiday.Walmart (NYSE:WMT) and Walgreens (NASDAQ:WBA) would be the Dow components with decent leverage to the Valentine's theme. Speaking of Walmart, the largest U.S. retailer reports quarterly results next Tuesday. More Legal NewsJohnson & Johnson (NYSE:JNJ) was among the Dow losers today, albeit in modest fashion, on news that 21 states, Puerto Rico and Washington, DC, are rejecting an $18 billion settlement offer from opioid wholesalers.The issue for JNJ here isn't so much about the dollar figure the company is on the hook for (it's an amount it can easily afford). It's more about how long these headlines are going to be an overhang for the company. Bottom Line on the Dow Jones TodayFriday was the type of choppy day seasoned investors know to expect when a long weekend is looming and with the new coronavirus from China issue far from being put to rest, some equity market lethargy is to be expected.Although there are just four trading days next week (markets are closed Monday), there is the potential for some sector-specific volatility with Walmart's earnings report and the Feb. 19 Democratic debate (healthcare).As of this writing, Todd Shriber did not own any of the aforementioned securities. He has been an InvestorPlace contributor since 2014. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Exciting Stocks to Buy for Aggressive Investors * 20 Stocks to Buy From the Law of Accelerating Returns * 7 U.S. Stocks to Buy on Coronavirus Weakness The post Dow Jones Today: A Day for Safe Havens appeared first on InvestorPlace.
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.
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.
Walgreens Boots Alliance (WBA) closed the most recent trading day at $53.57, moving -1.65% from the previous trading session.
DOW UPDATE Dragged down by negative returns for shares of Cisco and Dow Inc., the Dow Jones Industrial Average is trading down Thursday afternoon. The Dow (DJIA) was most recently trading 19 points lower (-0.
The Timely Ten represents our top ten recommendations from the Undervalued category each month, asserts Kelley Wright, blue chip dividend expert and editor of Investment Quality Trends.
DOW UPDATE Buoyed by strong returns for shares of UnitedHealth and Nike, the Dow Jones Industrial Average is climbing Wednesday afternoon. Shares of UnitedHealth (UNH) and Nike (NKE) are contributing around one third of the index's intraday rally, as the Dow (DJIA) was most recently trading 289 points (1.
While some investors are already well versed in financial metrics (hat tip), this article is for those who would like...