CVS

CVS Health Corp

Healthcare, Consumer


Presented:06/13/2023
Price:$72.26
Cap:$92.64B
Current Price:$65.00
Cap:$81.77B

Presented

Date06/13/2023
Price$72.26
Market Cap$92.64B
Ent Value$154.78B
P/E Ratio23.8x
Book Value$55.81
Div Yield3.2%
Shares O/S1,282.03M
Ave Daily Vol8,155,345
Short Int1.17%

Current

Price$65.00
Market Cap$81.77B
CVS Health Corp. is a health solutions company, which engages in the provision of healthcare services. It operates through the following segments: Pharmacy Services, Retail or Long-Term Care, Health Care Benefits, and Corporate and Other. The Pharmacy Services segment focuses on the pharmacy benefit management solutions. The Retail or Long-Term Care segment includes the sale of prescription drugs and an assortment of health and wellness products, and general merchandise. The Health Care Benefits segment offers traditional, voluntary, and consumer-directed health insurance products and related services, including medical, pharmacy, dental and behavioral health plans, medical management capabilities, Medicare Advantage and Medicare Supplement plans, Medicare Part D prescription drug plan, Medicaid health care management services, and health information technology products and services. The Corporate and Other segment is involved in providing management and administrative services. The company was founded by Stanley P. Goldstein and Ralph Hoagland in 1963 and is headquartered in Woonsocket, RI.

Publicly traded companies mentioned herein: Cigna Group/The (CI), CVS Health Corp (CVS), UnitedHealth Group Inc (UNH)

Highlights

The presenter is long shares of CVS Health Corp (CVS), believing the $72 share price offers a compelling risk/reward setup with a three-year price target of $120 per share and downside to $60 (17% down/67% up). His bullish outlook stems from the idea that the health insurance industry will look more like vertical care organizations a decade from now. UNH has executed that transition better than anyone else so far, but CVS also seems well-positioned to make that transition over time. In the meantime, investors will get paid a 3.4% dividend yield.

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Idea Discussion

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