+ Watch CVS
on My Watchlist
The Company's current operations are grouped into two businesses: Retail Pharmacy and Pharmacy Benefit Management.
dominating the market for consumer drugs, smart play to eliminate tobacco sales (others will follow), expansion to other high margin products (aka walmart and target)
David's new stock, CVS, perplexes me as a retired Longs/CVS employee. I have read the CVS article in the Stock Advisor, but cannot understand how CVS can be as successful as it appears to be when all of the employees I know just hate working there, especially those who previously worked for Longs, many whom have since quit.
Company just announced discontinuing the sale of cigarettes. Okay, so why be optimistic about a company that is cutting out a lot of revenue... because it shows me that they are truly thinking strategically for the long-term (not just quarter to quarter). They are trying to convert themselves into a medical provider, not just a place to buy asprin, milk and a birthday card. I can see them further expanding their Minute Clinic concept into other areas, which should help profitability quite a bit.
Excellent customer service and thoughtful expansion plans with diligent management.
CVS is selling at over a 40% discount to the S&P 500, with a Forward PEG of 1.1. Analysts are raising price targets, and earnings have been met or exceeded in each of the last 6 reporting quarters. The recent weakness in price has created a good entry point, as the stock is currently oversold.
CVS is the market leading in filling prescriptions, as well as selling household products. It's already a pretty large company, but I believe they can still grow due to ObamaCare increasing the amount of prescriptions being issued, as well as being the go-to store for household products (like soap, shampoo, party food, razors, etc.) Hold CVS for a year and reexamine the effect that ObamaCare has on the company.
Good and growing dividend. Business should continue to grow with aging population
CVS is poised to win big from Obamacare and the rapid aging of Baby Boomers, and it will win in several directions: through its PBM, its pharmacies, and its specialty pharmacy division.
Old people FTW
Inelastic business, aging population, admired company, coupons hook customers to return
An aging population alone will facilitate additional medical prescription sales. Coupled with the "Affordable Health Care Act", retail pharmacies will see explosive growth. Why? A huge increase in the number of insured and these newly insured will take advantage of prescriptions provided by their health care plan.
Wanted to add a strong RX company for Obamacare play in 2014
While CVS may seem to be a promising performer there are a number of factors that make me skeptical of their long term success. CVS hemmorrhages hundreds of millions every year from lawsuits, some recent ones I recall are medicare fraud, and illegal pseudoephedrine sales. On top of that, as a former employee on the ground level I got to see how horribly understaffed all their stores are, both in the pharmacy and front store. In every store in the district I was employed in script count remained stagnant due to the large numbers of people transferring out from poor service.
If you like to make money and don't like to lose it, CVS is for you. Get-rich-slowly kind of stock with a very modest valuation.
Buying on the pullback. Low P/E and history of increasing dividend payments make this a winner
I teach Technology and Society at an unnamed college. (Honest, we have no name.) One of the easiest concepts for my students to grasp is that health care costs rise faster than others because we're willing to pay for it. Pharmacies may not have the potential as developing drugs, but they also don't have the perils. The fundamentals for this company are good. An investment isn't going to make you rich, but it should perform well for a long time.
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