Tag: CVS

CVS: Stupid Cheap, Big Growth Potential In PBMs, Tough Competitive Environment (NYSE:CVS)

As an investor who is constantly self-critical and on an endless pursuit of performance optimization, I’m continually evaluating some of the biggest risks on some of the best-performing stocks and industries, and wondering… what is Wall Street pricing (or not pricing) in?

Lately, my latest obsession has been with maturing industries. It’s not hard to sniff out these industries and see the afflicted companies littered all around the S&P 500 – stocks that have performed terribly compared to the index despite a roaring recovery since the Great Correction of March 2020.

And yet, so many of these bigger stocks have underperformed not in a silo, but rather together with their peers. Intuitively, it must make sense – industries mature, and it creates a tough environment for even the best competitors of that industry to perform at the level that investors expect.

Some examples of subpar price appreciation, note the

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CVS Health: Business Takes Off, Stock Remains A Riddle (NYSE:CVS)

I am covering CVS Health Corporation (NYSE:CVS) since November 2017, when I wrote about the company for the first time. Back then, it was trading around $70, and I already called the stock undervalued. Over the last three years, I have written several bullish articles about CVS, and in April 2019, I finally bought CVS when it was trading a little above $50.

Data by YCharts

Although the stock climbed to $75 after I bought the stock, it crashed in March 2020 along with everything else, and it completely missed the rally that was going on in the market over the last few months. I understand that CVS is not a “hot stock” and not a technology company, but I am puzzled why the market does not recognize the value of CVS. And although I remain very bullish, the divergence between my opinion about the stock’s intrinsic value and the

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