#4 - CVS (NYSE:CVS)
Pharmacy chains like CVS (NYSE:CVS) are also feeling the effects of the coronavirus. On the one hand, it would seem that companies like CVS and rivals such as Walgreens (NASDAQ:WBA) would stand to benefit from elevated demand during the crisis. However, social distancing is a variable that is hard for these companies to forecast. Drug stores are not set up as e-commerce enterprises. Developing a curbside pickup or home delivery infrastructure on the fly is not something that these companies are set up to do.
But if we consider that to be a problem that will impact all pharmacy chains, what is there to like about CVS stock. To begin with, 2020 should be the first year CVS begins to realize cost synergies from its acquisition of Aetna in 2018.
CVS is also forecasting 1,500 HealthHUB health clinics to open nationwide by the end of 2021. These clinics will have the ability to provide simple health screenings and services. This model has been proven to drive more customers to the store. And when they’re there they tend to buy more prescriptions and more front-end products. CVS stock is down approximately 25% which is at a discount to the broader market.
Savvy investors know that you have to answer the door when opportunity knocks...
About CVS Health
CVS Health Corporation provides health solutions in the United States. It operates through Health Care Benefits, Health Services, and Pharmacy & Consumer Wellness segments. The Health Care Benefits segment offers traditional, voluntary, and consumer-directed health insurance products and related services.
Read More - Current Price
- $44.36
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 13 Buy Ratings, 6 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $69.12 (55.8% Upside)
