CVS - CVS Health Corporation
| Previous Close | 56.50 |
| Open | 56.70 |
| Bid | 56.00 x 1800 |
| Ask | 56.19 x 800 |
| Day's Range | 55.94 - 56.82 |
| 52 Week Range | 51.72 - 82.15 |
| Volume | 5,148,210 |
| Avg. Volume | 9,253,849 |
| Market Cap | 72.671B |
| Beta (3Y Monthly) | 1.05 |
| PE Ratio (TTM) | N/A |
| EPS (TTM) | -0.16 |
| Earnings Date | Aug 7, 2019 |
| Forward Dividend & Yield | 2.00 (3.56%) |
| Ex-Dividend Date | 2019-07-24 |
| 1y Target Est | 67.05 |
- Benzinga•2 days ago
Retail Momentum Gathers For CBD Topicals While FDA Decides Its Direction
The United States Food and Drug Administration (FDA) has tried its regulatory best to pump the breaks on the phenomenon by asserting its authority and cracking down on illicit sales of CBD supplements. Standing on the sidelines are large-scale national retailers, many of which understand the potential profits but prefer not to pique the ire of federal authorities. While some retailers are staying out of the CBD craze completely, others are splitting the difference by offering topical CBD products, which are less likely to draw the legal wrath of the FDA.
- InvestorPlace•2 days ago
The Worst Appears to Be Over for CVS Stock
CVS Health (NYSE:CVS) can't catch a break. Neither can its shareholders. CVS stock is at roughly half the value it was at its mid-2015 peak. And it only recently came off its May multi-year lows. Good news about cancelled drug-rebate plans that would have cost it a fortune shoved shares higher earlier this month. Now, that move has largely come undone. The bears appear to remain in charge.Source: Shutterstock Nothing lasts forever though. While CVS Health stock may look and feel stuck in a downtrend, don't despair: what the company is building is very much the future of healthcare.The organization gave stakeholders of CVS stock another glimpse of that future this week.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Desperate MeasuresThe short version of a story most everyone knows: the state of the healthcare system in the U.S. is laughable. Its sheer size and complexity, coupled with misguided regulation, has made it unaffordable for all. * 9 Retail Stocks Goldman Sachs Says Are Ready to Rip That's a key part of the reason strange-bedfellows Amazon (NASDAQ:AMZN), JPMorgan Chase (NYSE:JPM) and Berkshire Hathaway (NYSE:BRK.A, NYSE:BRK.B) made this announcement last year: they're forming their own healthcare company of sorts for their employees. Though not insurance per se, it was a means of offering low-cost clinical care in-house. Further, this move would also cull at least some of their healthcare and insurance expenses.However, it's hardly the only instance where such lines have crossed.Case in point: CVS rival Walgreens Boots Alliance (NASDAQ:WBA) has partnered with clinics to offer in-store (or near-store) primary care, as has CVS.Arguably, CVS took the boldest even if not the biggest step towards an industry shakeup last year. That was when the pharmacy giant announced its intent to merge with health insurer Aetna. The deal closed in late 2018.Responses were mixed. Concerned observers noted it was an opportunity for self-serving steering that crimps competition even if it doesn't kill it. Others lauded the idea, pointing out that with one less middleman, the industry could lower costs.Regardless, this is the new norm for the very same healthcare industry that collectively priced itself into the trouble it's now looking to escape.CVS Health carried the ball a bit further downfield this week, unveiling a home dialysis system that just began its required clinical trials. Disruption UnderwayIt wasn't a surprise, but it was a milestone nonetheless.CVS Health was and is a pharmacy, and now facilitates clinical/frontline care. Aetna is an insurer and can keep hospital and drug prices in check. However, neither arm has pushed its way onto biotech equipment turf until now.Last year's news of the planned project already put dialysis rivals into action. Davita (NYSE:DVA) as well as Fresenius Medical Care (NYSE:FMS) have both ramped up efforts to facilitate more at-home dialysis. Such moves saves patients from visits to their specialty clinics.That paradigm shift should also lower total costs for dialysis patients.Meanwhile, the Aetna/CVS deal has put the nation's traditional frontline players on notice. Ken Kaufman, managing director and chair of consulting firm Kaufman Hall, commented earlier that year that the once-unlikely pairing was "a shot across the bow of hospitals in America."In the same vein, the creation of Haven -- the name given to the entity co-created by JP Morgan, Amazon and Berkshire -- was a shot across the bow of pharmacies like CVS and insurers like Aetna.It's CVS, however, that's leading the charge of disruption, even if that means disrupting itself. CVS Stock Is Undervalued and OversoldCVS Health may be the face of a new era of integrated healthcare, but investors are clearly not buying it. Extending a pullback that began in 2015, 2017's initial efforts to team-up with Aetna along with uncertainty as to how the business might change under President Trump have ultimately worked against CVS Health stock.That concern largely has no merit though. Indeed, with Rite Aid (NYSE:RAD) on its heels and Walgreens not taking the same bold step CVS did to shape its own future rather than be shaped by it, investors have seemingly overlooked CVS Health's impressive past and compelling future. Click to EnlargeRevenue was growing and will continue to do so. The introduction of Aetna's business a couple of quarters ago had no bearing on the revenue trajectory. Analysts expect earnings per share of CVS stock to slide once this year. And then, it will likely move on to record-breaking levels for the newly combined companies. That's a victory in and of itself. Consider that the new-share issuance of CVS Health stock partly funded the acquisition.Notice the addition of Aetna will also stabilize CVS's otherwise wide seasonal swings in income.Perhaps the most bullish argument of all is the stock's forward-looking price-earnings ratio of 7.9. With or without challenges ahead, that's dirt cheap given the profit CVS Health could drive simply by coasting ahead. Looking Ahead for CVS Health StockThat being said, two key clues suggest the sentiment tide may have finally taken a turn for the better.One of them is the way CVS shares have repeatedly found a technical floor near $51.70. This is plotted with a yellow, dashed line on the chart. Bears have tested that floor three times since March, but it held up every time. It's a foundation the bulls can build on now that it's been established. Click to EnlargeThe other noteworthy nuance here is the amount of bullish volume that's kept CVS stock propped up. While February's pullback volume was significant, the same number of buyers (and perhaps more) have wanted to step back in.It's the first time we've seen this much technical support aided by this much buying interest.There's still work to be done, and there's still plenty of risk ahead. This week has been less than thrilling, with the buyers unwilling to follow through on last week's jolt. The bearish case is starting to crumble under the weight of the bullish case though. Its vertical and horizontal integrations appear to be working.As of this writing, James Brumley did not hold a position in any of the aforementioned securities. You can learn more about him at his website jamesbrumley.com, or follow him on Twitter, at @jbrumley. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 9 Retail Stocks Goldman Sachs Says Are Ready to Rip * 7 Services Stocks to Buy for the Rest of 2019 * 6 Stocks to Buy and 1 to Sell Based on Insider Trading The post The Worst Appears to Be Over for CVS Stock appeared first on InvestorPlace.
- PR Newswire•2 days ago
CVS Health and the CVS Health Foundation Building Healthier Communities across the Country with Nearly $3 Million in New Grants to Free Clinics
The new funding will support approximately 130 Free & Charitable Clinics in their efforts to help patients manage chronic disease, provide more wraparound services to address the social determinants of health and support treatment and prevention of substance abuse, including opioid and tobacco. The new funds bring the company and the CVS Health Foundation's total contribution to NAFC to nearly $8 million since 2015.
- Investor's Business Daily•3 days ago
CVS Health Tests Home Dialysis System; DaVita, Fresenius Hit
CVS Health began a trial of a home dialysis system that could cut into a market controlled by Fresenius Medical and DaVita. But all three stocks fell.
- InvestorPlace•3 days ago
CVS Stock Will Come Back Strong, but Be Wary of Upcoming Earnings
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.Source: Shutterstock Year-to-date, CVS stock which has missed the broader market rally in 2019, is down 13% and currently hovers around $57.5.When 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.InvestorPlace - Stock Market News, Stock Advice & Trading TipsTherefore, I regard CVS a good long-term pick. However, as it gets ready to report earnings on Aug.7, there might be some short-term price weakness in the stock that investors should anticipate. * 9 Retail Stocks Goldman Sachs Says Are Ready to Rip What to Expect from CVS Stock EarningsWhen CVS Health reports its next earnings, investors will analyze its three main segments: * Pharmacy Services (over 70% of sales come from it); * Retail/LTC; * Health Care Benefits (recently established).These segments provide CVS with diversified sources of revenue, earnings and cash flow. In May, CVS Health reported better-than-expected Q1 earnings.Revenue grew 34.8% to $61.6 billion. Adjusted operating income increased by 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. As a side note, in Nov. 2018, CVS stock traded at about $80 per share. Aetna is the third-largest U.S. health insurance company by membership and revenue.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 (YoY).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% YoY.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 its proactive management, are likely to increase the group's ability to grow revenue and earnings in future quarters, too. CVS Stock Has Long-Term StrengthsMost consumers know CVS Health as one of the largest pharmacies in the U.S. Yet with its Aetna health insurance unit, its Caremark PBM, and retail pharmacies, the group has also become a vertically integrated stock, providing a wide range of services and products.With almost 10,000 pharmacies in the U.S., the company operates a growing and profitable pharmacy segment, filling over a billion prescriptions per year. Going forward, CVS Health 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 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 in the 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. In other words, investor sentiment remains weak, or shaky at best.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. As of Q1, CVS' net debt, which includes both short and long-term debt, was $65 billion. 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 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.Finally, a potential economic slowdown or increased competition in the healthcare segment, as well as potential regulatory changes in the U.S., could cause CVS stock to underperform in the rest of the year or 2020. Should Investors Buy CVS Health Stock in July?Long-term, I am bullish on the outlook for CVS Health stock as I believe management will take the right steps to achieve acquisition synergies. Now, the group has a wider reach in the healthcare industry.Furthermore, as debt levels decline, interest expenses will also decrease. As a result, CVS stock's earnings are likely to get on the road to a steady growth trajectory.Yet due to the decline in price since 2015, CVS Health stock has a not-so-pretty long-term technical picture. In the long-run, CVS stock needs to build a base again before a long-term sustained leg up can occur.On the other hand, the short-term technical chart has recently been improving, and CVS is stabilizing between $52.5 and $57.5.If you aren't already long CVS stock, you may want to remain on the sidelines until the earnings report as near-term trading is likely to be choppy. Or you may 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. 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. Long-term shareholders would also enjoy a current dividend yield of 3.5%.As of this writing, Tezcan Gecgil holds CVS covered calls (July 19 expiry). More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 9 Retail Stocks Goldman Sachs Says Are Ready to Rip * 7 Services Stocks to Buy for the Rest of 2019 * 6 Stocks to Buy and 1 to Sell Based on Insider Trading The post CVS Stock Will Come Back Strong, but Be Wary of Upcoming Earnings appeared first on InvestorPlace.
- Reuters•3 days ago
CVS enters home dialysis care with clinical trial of new system
CVS Health said on Wednesday it will start a clinical trial of its new home dialysis system this week, setting it up to compete directly with the two largest operators of U.S. dialysis centers, Fresenius Medical Care AG and DaVita Inc. It had announced last year that it was working on a home hemodialysis system, which would enable patients with end stage renal disease to have more frequent dialysis and potentially better health outcomes compared with clinic-based care. Without a transplant, patients with end-stage kidney disease require dialysis to clear their blood of waste and excess fluid, which involves spending three-to-five hours hooked up to a machine three times a week.
- PR Newswire•3 days ago
CVS Health Announces Start of Clinical Trial for New Home Hemodialysis Device
WOONSOCKET, R.I., July 17, 2019 /PRNewswire/ -- CVS Health (CVS) today announced the initiation of a clinical trial designed to evaluate the safety and efficacy of the HemoCare™ Hemodialysis System for administration of home hemodialysis. The innovative device includes safety features and is designed to make home hemodialysis simple for patients. Home hemodialysis helps facilitate longer, more frequent dialysis treatments as compared to in-center treatments, and published clinical research has found that longer, more frequent hemodialysis treatments result in better health outcomes in appropriate patient populations.1,2,3 The clinical trial of up to 70 patients will be conducted at up to ten sites in the United States.
- TheStreet.com•3 days ago
CVS Health Starts Clinical Trials for Home Dialysis System
CVS Health shares were unchanged in the premarket after the company said it would start a clinical trial of an experimental home-dialysis system for patients with end-stage renal disease. End-stage renal disease requires patients who haven't had kidney transplants to use dialysis machines to clear their blood of waste and excess fluid. The company estimates that more than 37 million Americans have kidney disease, with nearly 700,000 having end-stage renal disease.
- InvestorPlace•4 days ago
Right Now It Looks as If It Is Time for CVS Stock to Breakout Higher
It's been a tough run over the past few years for retail pharmacy and pharmacy benefit management (PBM) giant CVS (NYSE:CVS), and CVS stock has had trouble gaining traction. Click to Enlarge Source: Shutterstock On the retail side of things, increased competition and the threat of an Amazon (NASDAQ:AMZN) entry into retail pharmacy have both pressured current sales trends, and depressed investor sentiment regarding future sales trends. Meanwhile, on the PBM side of things, legislation has similarly pressured sales and profits.Net-net, while the S&P 500 is up more than 40% over the past four years, CVS stock is down nearly 50% over that same stretch.InvestorPlace - Stock Market News, Stock Advice & Trading TipsFor the past few months, with CVS finally stabilizing in the lower $50's, I've said time and time again that the long term bull thesis on CVS is starting to look compelling. That thesis is pretty simple. The present trends underlying CVS aren't great right now. But, they will get better, on both the retail and PBM sides. As those trends improve, they will converge on a depressed valuation, and spark a big rebound rally in CVS stock. * 7 Dependable Dividend Stocks to Buy This thesis has already played out in a small way. Over the past three months, CVS is up nearly 10%. But, there's reason to believe that this bull thesis will start to play out in a big way in the back half of 2019.As such, CVS looks like a good buy here, ahead of what could be a sizable second half 2019 rally in the stock. The Trends Are ImprovingThe core bull thesis on CVS stock rests on the idea that the company's operational trends are improving, and will continue to improve for the foreseeable future.On the retail side of things, CVS is the market share leader (25%-plus share) in a stable growth retail pharmacy market. But, the company's retail operations have been under pressure over the past few years due to intensifying competition, price pressures, and the threat of Amazon jumping into the pharmacy space.These threats are very real. But, they are starting to ease. Amazon's entry into this space has been over-hyped. Competition pressures are cooling as the industry is consolidating among the largest players. Price pressures are similarly easing.Indeed, last quarter, CVS reported very strong retail numbers with a 3.8% gain in same-store sales, paced by a 6.7% gain in pharmacy prescription volume, a multi-quarter high 1.2% gain in front store sales (adjusted for the Easter holiday shift), and 140 basis points of retail pharmacy market share expansion.On the PBM side, U.S. President Donald Trump just agreed to scrap a proposed PBM rebate overhaul that would've presented a huge revenue and profit headwind for CVS' PBM business. Broadly, this means that the big legislation headwind which CVS stock has been staring at over the past few quarters is now gone. This lifting of this headwind will provide a nice boost to investor sentiment regarding this company's PBM business.All in all, going into the back half of 2019, CVS stock should benefit from improving operational trends and investor sentiment. The Stock Is Too CheapThe other part of the bull thesis is that, because the stock is so cheap, improving operational trends and investor sentiment in the second half of 2019 will spark a big rally.CVS stock presently trades at 8.4-times forward earnings. The stock's average forward multiple over the past five years has hovered around 13.5, a 60%-plus premium to the current multiple. Meanwhile, the S&P 500 trades at 17-times forward earnings (more than double the CVS multiple), and even depressed drug retail stocks trade at 9.2-times forward earnings, a near 10% premium to the CVS multiple.Thus, relative to its historical self, the rest of the market, and peer drug retail stocks, CVS stock trades at a sizable discount.The thing about sizable discounts is that they lay the groundwork for sizable rallies in the event that the stock's fundamentals improve. That's exactly what will happen with CVS stock in the back half of 2019. The company's retail and PBM fundamentals will improve. Those improvements will simultaneously push forward profit estimates higher and spark healthy multiple expansion. That double tailwind will drive a substantial rally in CVS. Bottom Line on CVS StockCVS stock has been a big loser over the past four years. But, the fundamentals are starting to inflect, and CVS stock appears to be in the middle of a bottoming process that will ultimately result in the stock reversing course and heading substantially higher over the next few quarters.As of this writing, Luke Lango was long CVS and AMZN. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Dependable Dividend Stocks to Buy * 10 Stocks Driving the Market to All-Time Highs (And Why) * 7 Short Squeeze Stocks With Big Upside Potential The post Right Now It Looks as If It Is Time for CVS Stock to Breakout Higher appeared first on InvestorPlace.
- Zacks•5 days ago
CVS Health (CVS) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, CVS Health (CVS) closed at $57.44, marking a -0.19% move from the previous day.
Motley Fool•5 days agoWhy CVS Health Stock Lost 17% Through the First Half of 2019
Shares of the pharmacy chain dipped on a weak outlook for 2019 as it works to integrate the Aetna acquisition.
- InvestorPlace•5 days ago
A Pairs Prescription for CVS Stock and Merck
When it comes to investing, a new price trend is something we all can enjoy. But when you can effectively hedge that bet with a pairs trade in CVS (NYSE:CVS) and Merck (NYSE:MRK), that's a prescription for profits. Let me explain.Source: Shutterstock It nearly goes without saying interest rate policy and the U.S. China trade war have been on most investors' minds of late. Some days Wall Street is bullish, while on others, it's seemingly the end of the world as we know it. But for MRK stock and CVS shareholders, real catalysts off and on the price charts are happening right now.On Thursday, the Donald Trump administration announced it is walking away from a plan to eliminate rebates large pharmaceutical companies pay to pharmacy benefits managers, which negotiate drug prices on behalf of buyers such as insurance companies. Bottom line, for a drug manufacturer like Merck, this is potentially a huge headwind. Likewise, it could be a boon for CVS stock.InvestorPlace - Stock Market News, Stock Advice & Trading TipsUnder the scrapped rebate proposal, Merck would more or less have been able to retain its lucrative pricing model. Now though, and with the Trump administration still searching for a victory in promised lower healthcare costs to individuals, it's likely drug companies are going to be casualties to that end. That's bad news for MRK shareholders. And conversely, much of what's been ailing CVS stock has been eradicated. * 7 Dependable Dividend Stocks to Buy And on the price charts of CVS and MRK, reaction to the reports have confirmed the prescription for long-term profits by pairing up an improving CVS stock and a fatigued-looking MRK stock. Buy CVS StockShares of CVS stock have been correcting for the past four years, since hitting an all-time-high of $103.64 in July 2015. The days of CVS' bearish cycle, however, don't just look numbered -- they appear to be all but over.As the monthly chart shows, this week's news-induced bid has confirmed a monthly candlestick pivot low in shares of CVS. More importantly, the low is supported by the 62% retracement level dating back to the financial crisis. Further, stochastics is bullishly backing up the idea of a meaningful bottom as the indicator signals a crossover in oversold territory.CVS Stock Trade: Buy CVS stock today, look for upside towards $75-$80 in the coming months and size your position accordingly based on pattern risk of around 11%. Short MRK StockShares of MRK stock look prone to a larger cycle of profit-taking following what I'll call a period of bullish influenza after breaking out last July from a corrective base-on-base pattern. The news this week has had the effect of shaping a confirmed bearish engulfing reversal candlestick.The monthly chart in Merck also shows a bearishly supportive setup, as the indicator has been bearishly diverging from the price as new highs were hit. Net, net the technical evidence points to profit-taking and possibly an even larger bearish cycle for MRK stock.MRK Stock Trade: Short MRK stock today. Similar to CVS, a slightly larger stop-loss of 11% looks appropriate for containing dollar risk. Exit the position if the topping pattern turns lethal for bears and shares manage to make new highs.Investment accounts under Christopher Tyler's management do not own positions in any securities mentioned in this article. The information offered is based upon Christopher Tyler's observations and strictly intended for educational purposes only; the use of which is the responsibility of the individual. For additional options-based strategies, related musings or to ask a question, you can find and follow Chris on Twitter @Options_CAT and StockTwits. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Dependable Dividend Stocks to Buy * 10 Stocks Driving the Market to All-Time Highs (And Why) * 7 Short Squeeze Stocks With Big Upside Potential The post A Pairs Prescription for CVS Stock and Merck appeared first on InvestorPlace.
- InvestorPlace•5 days ago
CVS Stock Is a Buy as It Prepares to Take on Private Insurance
Since July of 2016 CVS Health (NYSE:CVS) has been a nightmare for investors. This time three years ago, CVS stock traded at a little more than $97, today it trades at something closer to $57.Source: Shutterstock Despite making what seemed like smart moves, like dropping cigarettes, converting to a health format, adding clinics, and buying Aetna, the stock has continued to sink.But analysts have suddenly warmed to CVS' story. In the last month, the shares are up 8%. On July 11 alone they rose 4.68%. Even at that price, CVS is still selling at a retailer's multiple of less than half its revenue.InvestorPlace - Stock Market News, Stock Advice & Trading TipsIt's an illustration of the difference between the marketplace and the stock market. It's a great opportunity for investors with a long-term view. * 10 Best Dividend Stocks to Buy for the Rest of 2019 and Beyond Chronic Conditions and CVS StockAmerica spends 18% of its GDP on health care, but 75% of that is spent treating and monitoring chronic conditions. These are preventable diseases like heart disease, diabetes, and kidney disease.This is what CVS has been focused on. By delivering services as well as products through almost 10,000 stores, the company hopes to gain a bigger share of this $1.1 trillion bonanza. Preventing obesity, treating alcoholism and ending smoking could be worth trillions more.Analysts have been focusing on drugs, in the form of Amazon (NASDAQ:AMZN) and its Pillpack service or CVS' Caremark Pharmacy Benefit Manager, but CVS has been diversifying away from the pure-intermediary model.Aetna alone brings 22 million insurance accounts to the party. If CVS' network can reduce the costs of covering those people, it can offer lower prices that increase that number. That's what its HealthHUB strategy is all about.Deliver the most common services and treatments from a storefront, add front-line clinics for primary care, of which CVS already has 1,100, and you have more cost control than any insurance rival. CVS hopes to turn 1,500 of its outlets into HealthHubs in the next two years. CVS Stock and the Real CompetitionCVS' rivals in this area aren't Amazon or even Walgreens Boots Alliance (NYSE:WBA). They're other insurers like United Healthcare (NYSE:UNH), which dominates the private insurance market and managed care companies like Centene (NYSE:CNC), which uses company-owned facilities to handle Medicare and Medicaid at a profit.Investors haven't credited any of CVS' moves for political reasons. Democrats talking about converting all health care to a publicly funded system makes them nervous. The possible end of Obamacare, pricing tens of millions out of the insurance market, also makes them nervous.But CVS' strategy can work in either case. If Democrats expand Medicare the companies that can cut costs fastest will benefit. If people are left without insurance, stores that offer the lowest-cost primary care and services grow. The Bottom Line on CVS StockIn its first-quarter report for 2020, delivered May 1, CVS earned $1.4 billion, $1.62 per share fully diluted, on revenues of $61.6 billion. This is the first fiscal year that has begun since the Aetna deal closed. CVS raised earnings guidance for the full year. Its 50 cent per share dividend, with its fat 3.6% yield, is thus affordable.Because of its retail operation, CVS is the only insurer that can rival United Healthcare in size. That company's revenues for the first quarter were $60.3 billion. It has four times the market share of Aetna in private insurance.Most analysts consider United Healthcare the biggest winner in health care, but macro trends may be running against it. CVS stock is a winner for income investors right now, with that fat, affordable dividend.Dana Blankenhorn is a financial and technology journalist. He is the author of a new environmental story, Bridget O'Flynn and the Bear, available now at the Amazon Kindle store. Write him at danablankenhorn@gmail.com or follow him on Twitter at @danablankenhorn. As of this writing he owned shares in AMZN and CVS. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks to Buy for Less Than Book * 7 Marijuana Stocks With Critical Levels to Watch * The 10 Best Dividend Stocks to Buy for the Rest of 2019 and Beyond The post CVS Stock Is a Buy as It Prepares to Take on Private Insurance appeared first on InvestorPlace.
- MarketWatch•7 days ago
Health care is one of the stock market’s healthiest sectors right now
DEEP DIVE Despite all the good economic news, earnings growth is expected to slow to a crawl this year for large U.S. companies. It may also surprise you that the health-care sector is seen as one of the exceptions.
- Zacks•8 days ago
ETFs to Shine as Trump Tosses Drug Rebate Curb Plan
We study the impact of Trump's dropping of the proposed drug rebate rule on some health ETFs with exposure to pharmacy benefit managers and healthcare insurers.
- Motley Fool•8 days ago
McDonald’s Franchisees: Give Us the Bird
The people have spoken: McDonald’s should really put some more chicken on the menu.
- Motley Fool•8 days ago
McDonald's Franchisees Want a Sandwich That Can Compete With Chick-fil-A Chicken
The people have spoken: McDonald’s should really put some more chicken on the menu.
- Market Exclusive•8 days ago
Cannabis Stock News Daily Roundup July 12
Green Growth Brands (CSE: GGB) (OTCQB: GGBXF) has received a purchase order from American Eagle Outfitters (NYSE: AEO) for hemp-derived CBD infused personal care products. The deal will see GGB’s products hitting shelves at nearly 500 of American Eagle stores. The Supreme Cannabis Company (TSX: FIRE) (OTCQX: SPRWF) and Blissco Cannabis (CSE: BLIS) (OTCQB: HSTRF) reported […]The post Cannabis Stock News Daily Roundup July 12 appeared first on Market Exclusive.
- Zacks•8 days ago
The Zacks Analyst Blog Highlights: DaVita, Fresenius, Baxter, Amgen and CVS
The Zacks Analyst Blog Highlights: DaVita, Fresenius, Baxter, Amgen and CVS
- Zacks•8 days ago
Stock Market News for Jul 12, 2019
The Dow and S&P 500 closed at record highs on Thursday riding a rally among healthcare shares and Fed???s indication of an easier monetary policy.
- InvestorPlace•8 days ago
Friday’s Vital Data: Bed Bath & Beyond, CVS and Merck
In early morning trading, futures on the Dow Jones Industrial Average are up 0.29%, and S&P 500 futures are higher by 0.22%. Nasdaq-100 futures have added 0.20%.Source: Shutterstock In the options pits, calls continued their usual leadership role on Thursday, while overall volume settled to average levels. Specifically, about 18 million calls and 14.4 million puts changed hands on the session.Meanwhile, over at the CBOE, the single-session equity put/call volume ratio normalized after Wednesday's super low reading. The metric climbed back to 0.61 to end in the location of the 10-day moving average.InvestorPlace - Stock Market News, Stock Advice & Trading TipsOptions traders swarmed the following three stocks. Bed Bath & Beyond (NYSE:BBBY) continued its trend of earnings deterioration with weak numbers for the fiscal first-quarter. Merck (NYSE:MRK) and CVS Health (NYSE:CVS) both saw sharp moves following news that the White House was ending its drug rebate plans.Let's take a closer look: Bed Bath & Beyond (BBBY)A quick Google search following this week's earnings release for ailing retailer, Bed Bath & Beyond, reveals a litany of ominous-sounding headlines. And, well, they're all probably justified. For the fiscal first-quarter, the company posted a loss of $2.91 per share. After adjusting for miscellaneous items, however, earnings came in at 12 cents per share, marking a 68% decline. Comps were down 6.6%, and revenue grew to $2.57, which was well below last year's $2.75 billion in the same quarter.Sellers took to the streak driving BBBY stock as low as $10.43 before a rapid recovery carried it back near the high of the day. The chart continues to look like garbage, warning anyone who cares about technical analysis to stay far away. That said, the intraday rebound was impressive and could deliver some short-term relief. * 7 Short Squeeze Stocks With Big Upside Potential On the options trading front, puts were all the rage. Total activity ballooned to 777% of the average daily volume, with 108,356 contracts traded; 70% of the trading came from call options alone.The expected move ahead of earnings was $1.54 or 13.3%, so with the stock rallying back to near unchanged on the session, anyone who shorted volatility before the report and held steady through the morning drop came out a big winner. CVS Health (CVS)CVS Health has been in decline for years, but scored a rare win yesterday after the White House halted plans that "would have curtailed rebates that drug manufacturers pay pharmacy benefit managers (PBMs) in return for winning placement of high-priced products on lists of drugs that insurers cover with affordable co-pays."Although CVS stock closed up 4.68% on the session, it was mostly a sell-the-news reaction. It was up as much as 8.6% before sellers swarmed and capitalized on the gift. The chart still looks terrible, but Thursday's jump did complete a five-month basing pattern, so there is a chance that a short-term bottom has been put in place.On the options trading front, optimism drove traders into call options throughout the session. By day's end, activity grew to 539% of the average daily volume, with 170,938 total contracts traded. Calls claimed 66% of the session's sum.Implied volatility jumped to 31% or the 41st percentile of its one-year range. Premiums are now pricing in daily moves of $1.13 or 1.9%. Merck (MRK)CVS Health wasn't the only stock impacted by the White House announcement. Companies that manufacture and sell drugs like Merck were whacked after the news. Barrons has an insightful take you can find here. * 10 Best Dividend Stocks to Buy for the Rest of 2019 and Beyond The single day 4.5% drop took some $7 billion off the market cap of MRK stock and pushed it back below its 50-day moving average. The uptrend is now on shaky footing, and the stock is in technical no man's land. If the weakness persists, use $77 as your first downside target. It would take a recovery to $85 before negating the bearish signals created by Thursday's swoon.On the options trading front, put popularity only slightly edged out calls. By the closing bell, activity climbed to 392% of the average daily volume, with 100,295 total contracts traded. Puts accounted for 52% of the take.The plunge did light a fire under implied volatility, driving the measure up to 24% or the 52nd percentile of its one-year range. Premiums are officially pumped, suggesting short options strategies are the way to go if you're inclined to trade here.As of this writing, Tyler Craig didn't hold a position in any of the aforementioned securities. Check out his recently released Bear Market Survival Guide to learn how to defend your portfolio against market volatility. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks to Buy for Less Than Book * 7 Marijuana Stocks With Critical Levels to Watch * The 10 Best Dividend Stocks to Buy for the Rest of 2019 and Beyond The post Friday's Vital Data: Bed Bath & Beyond, CVS and Merck appeared first on InvestorPlace.
- InvestorPlace•8 days ago
3 Big Stock Charts for Friday: HollyFrontier, Activision Blizzard and Vertex Pharmaceuticals
Another win for the market on Thursday, with the S&P 500 ending the session up 0.23% to finish the session at just a hair below 3,000. The volume grew once again on the third-straight daily gain, though it is still below average.Source: Shutterstock CVS Health (NYSE:CVS) and UnitedHealth Group (NYSE:UNH) ranked among the session's biggest winners, up 4.7% and 5.5%, respectively, after President Trump decided to not enact new rules that would stymie rebates on pharmaceutical purchases. At the other end of the spectrum, Merck (NYSE:MRK) led the losers on Thursday, as the President's move worried some that it could end up being pharmaceutical companies that bore the brunt of any cost-control initiatives. Merck shares ended the day down by 4.5%. * 10 Best Dividend Stocks to Buy for the Rest of 2019 and Beyond Headed into the final trading day of the week, though, it's HollyFrontier (NYSE:HFC), Activision Blizzard (NASDAQ:ATVI) and Vertex Pharmaceuticals (NASDAQ:VRTX) that merit the closest looks from traders. Here's why, and what to look for.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Vertex Pharmaceuticals (VRTX)Vertex Pharmaceuticals is still technically in a long-term uptrend, guided higher by a rising support line that extends all the way back to late-2017. Although it has ebbed and flowed along the way, it has made higher highs and higher lows for some time now.The flavor of the advance changed in a fundamental way this year, however, and although it has been more erratic than not, current and prospective owners may want to note that the repeated bearish swings are taking a cumulative toll on the broad uptrend. Click to Enlarge * Chief among the changes in the timbre of the major rally is the fact that for the first time in several quarters, VRTX has logged a streak of lower highs. They're plotted in yellow on both stock charts. * The long-term support line is marked with a dashed blue line on both charts. * It's easy to look past in the wide swings we've seen since the beginning of 2018, but the most recent round of weakness has pulled the purple 50-day moving average line below the white 200-day line for the first time since mid-2018 (although that instance proved to be a great entry point). HollyFrontier (HFC)Late last month, HollyFrontier shares were able to punch through a long-standing falling resistance line, and proceed to test their 100-day moving average line, marked in gray on both stock charts. That test ultimately failed, sending HFC lower again. Shares only needed to take a small step back before renewing a much-needed running start. The second effort made a big dent on Thursday. * 7 Marijuana Stocks With Critical Levels to Watch Click to Enlarge * The resistance line in question is marked in yellow on both stock charts. In retrospect, May's steep selloff served as the capitulation the chart needed. * Although it faltered the first time when attempting to push past the moving average line (highlighted), Thursday's second attempt worked nicely. * While the volume behind the runup since May's bottom is on reasonably healthy volume, the pace hasn't been healthy. HollyFrontier isn't yet stochastically overbought, but it's getting to that point fast. Activision Blizzard (ATVI)Finally, within nothing more than a quick glance, Activision Blizzard shares merely look stuck in a trading range. And, that may well be the case. A deeper look at some of the more subtle clues, however, suggests the bulls may be working on a bigger-picture recovery of last year's oversized pullback. The inflection point is within sight too, with a massive amount of room to run if and when the last hurdle area is cleared. Click to Enlarge * The subtle hints are not just the bullish crosses of most of the moving average lines on the daily chart. Since the end of last month, the 20-, 50- and 100-day moving average lines are acting as support. * The inflection point, or final potential resistance, is the 200-day moving average line at $51, plotted in white on both stock charts. In the meantime, there's horizontal resistance around $48.80. * The weekly chart puts the potential rebound in perspective. It also better identifies the fact that we've already seen a higher low.As of this writing, James Brumley did not hold a position in any of the aforementioned securities. You can learn more about him at his website jamesbrumley.com, or follow him on Twitter, at @jbrumley. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks to Buy for Less Than Book * 7 Marijuana Stocks With Critical Levels to Watch * The 10 Best Dividend Stocks to Buy for the Rest of 2019 and Beyond The post 3 Big Stock Charts for Friday: HollyFrontier, Activision Blizzard and Vertex Pharmaceuticals appeared first on InvestorPlace.
- Zacks•9 days ago
Trump Drops Drug Rebate Proposal: What's Next and What Stocks to Play
The Trump administration announced Thursday that it's deciding to withdraw its proposal to eliminate rebates from government drug plans.
- GuruFocus.com•9 days ago
Dow Jones Passes 27,000 for the 1st Time
Bed Bath & Beyond slumps on quarterly results Continue reading...
