+ Watch CVS
on My Watchlist
The Company's current operations are grouped into two businesses: Retail Pharmacy and Pharmacy Benefit Management.
Old people FTW
trade...long term is long
PE just over 18 & yield is 1.4%
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.
I'm going to track WAG and CVS here, based on the research in AAII (April 2013: Joint Quality, Value and Momentum).
Buying on the pullback. Low P/E and history of increasing dividend payments make this a winner
good fundamentals, cheap on Book value basis, good profitability
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.
aging population, convenience, promotions
CVS will benefit from the growth of their PBM, Caremark, as well as their brick and mortar from the Baby Boomers retiring with plenty of money to spend on Health Care.
Strong financials in a retail area that's only going to get larger.
growth on minuteclinic, attracting patients to retail stores, sell more goods
Drug stores have a lot of wind at their backs:- Aging- Insulation from any significant downward price pressure- Switch to generics (profit driver)- Specialty pharmacy services (profit and revenue driver)
S &P 5 star
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