CVS Health Story

CVS Health Corporation -- USA Stock  

USD 70.68  0.3  0.43%

Macroaxis News
  
By Nathan Young

CVS is company that almost seems to be on every street corner. Being a top competitor to Walgreens, they have no choice but to be just as aggressive. CVS stores are a quick convince store as well as pharmacy and even minute clinics for your simple colds and flus. These are all around great stores, but as prices rise and shopping shifts to online retailers, could this be adversely affecting the company? Let us dive into some numbers to see if the trend supports potential investments.

Retail
Fama & French Classification
CVS Is on Every Street Corner but It May Not Be for Every Portfolio

Taking a look at the company’s numbers in an 8-K filing, we can see net revenues increased 15.5% to $44.6 billion, which is a year-over-year number. Operating profits increased 20.9% to $2.8 billion, which again, this is a year-over-year number. Year-to-date cash flow from operations is $7.9 billion and generated free cash flow of $6.6 billion. CVS does have a note for the 2017 fiscal year that their projections included a projected loss of more than 40 million retail prescriptions related to new restricted pharmacy networks. 

Looking at the chart, it appears price seems to be falling a bit, as it is beginning to make lower highs and lower lows. Just like most stocks, the price has increase steadily for years and is now maybe being over extended. I would be watching for a healthy retrace and begin looking for a solid entry point if this is a stock you want to invest in. Right now, it appears a top has been made and now patience is key.




Risks

Taking a look at the 10-K filing, the first risk the company cites is that they are in a highly competitive business environment. It is evident with companies such as Walgreens that are attempting to execute that same business idea. To lower this risk, the company has to stay ahead of the curve and innovate quicker than competitors. The company also cites the overall market conditions could adversely affect the company. People will spend less knowing the health of the economy is deteriorating, in order to preserve their own wealth. Lastly, CVS has to maintain consumer security, as that is a very real risk. Target is the poster child for a large-scale data breech of customer information, and if that happens to a company such as CVS, they are sure to lose customers to other businesses.

Conclusion

Overall, CVS appears to be doing fundamentally well, but I would take a look at the chart to see if might be overpriced compared to others in the same sector. Take a deeper look into ratios and see where it compares, and find an appropriate entry point from there. As with any investment, be sure to consult an investing professional to ensure you financial goals are being met.

Story Momentum

This article from Macroaxis published on 06 of December contributed to the next trading period price escalation.The overall trading delta to the next next day price was 1.4% . The overall trading delta when the story was published to current price is 11.13% .

Similar stores for CVS Health

a day ago at http://www.courant.com 
Report Buyout of Aetna Inc. Could Come This Month
news
In October, reports surfaced that Woonsocket, R.I.-based CVS was pursuing a buyout of Aetna, which earlier this year was rebuffed by government regulators in a bid to purchase rival Humana. CVS-Aetna Deal Could Arrive This Month - TheStreet.com
over a month ago at http://www.stocknewsjournal.com 
Is It Time to go for ConocoPhillips , CVS Health Corporation
wsj  News
CVS Health Corporation , maintained return on investment for the last twelve months at -, higher than what Reuters data shows regarding industry average. Are Investors Buying or Selling CVS Health Corporation , and What Should ... - NY Stock News Understanding Technical Signals From CVS Health Corporation - StockNewsGazette
over two months ago at www.macroaxis.com 
CVS Health exotic insider transaction detected
Macroaxis News
Filed transaction by Cvs Health Corp director. Unconventional Insider trading
over three months ago at http://seekingalpha.com 
CVS - A 50 Return By 2020
seekingalpha News
Seeking Alpha - Jun 5, 2017 CVS Health is a rare example of a dividend aristocrat trading well below its average multiple in this current frothy market.

Did you try this?

Run Idea Optimizer Now
   

Idea Optimizer

Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio
Hide  View All  NextLaunch Idea Optimizer

Compare

Compare CVS Health To Peers

Profit Margin

Profit Margin Comparative Analysis
  Profit Margin 
      CVS Health Comparables 
CVS Health is currently under evaluation in profit margin category among related companies. Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.