It’s time for a health check for CVS Health Corporation (NYSE:CVS) after reporting its most recent quarterly earnings and seeing its stock move in a wide range over the past few months. CVS reported what was ostensibly another great quarter and full-year numbers, reporting a full-year increase of 25.1%, 13.2% and 11.7% in free cash flow, EPS and revenue, respectively. After reporting its Q4 earnings, CVS held steady in contrast to the massive 17% sell-off after reporting its Q3 numbers, moving down from $84 to $70. I’ve written several articles contending that CVS presents a compelling investment opportunity in the ever expanding healthcare space. My investment thesis was based on sector consolidation, aging population and growth in long-term care facilities in combination with the fact that CVS has been highly acquisitive, continues to deliver robust earnings growth, revenue growth, growing dividends and has an aggressive share buyback program in place. With its recent acquisitions of Target’s pharmacies and Omnicare, these proactive measures will significantly expand its presence and ability to dispense prescriptions to the general public and in long-term care facilities. As health care costs and prescription drug costs continue to rise and the population continues to age with the elderly comprising a larger segment of the overall population, CVS looked poised to benefit. However, during the Q3 earnings call CVS noted that recent marketplace trends had forced CVS to cut guidance for Q4 2016 and the full-year 2017 numbers. This guide-down negatively impacted shares however the long-term narrative remains intact. CVS has strong fundamentals and growth and I felt that the previous sell-off after the Q3 release was an overreaction. Since then, Q4 numbers have been released and the share price has retraced the low $80 range and appears to be consolidating for another move up. Continue reading "CVS Health Check - Stock Appears To Be Consolidating"
Nothing excites investors more than a turnaround story. A company or stock that was down on its luck and has finally turned the corner is a feel-good play that's hard to ignore.
One company in the healthcare sector fits this definition perfectly. After soaring to new heights in the early 2000's, the company was racked by scandals and lawsuits nearly driving the company into bankruptcy. However, after a reorganization and a new outlook, the company has rebuilt its image and business into a successful company that's thriving today.
The healthcare industry is a growing field and a defensive one to be in considering how delicate the global economy is. One factor helping the industry along is an aging demographic. As of 2015, 14% of the US population was aged 65 or older. By 2020, that number is expected to rise to 22% thanks largely to the baby boomer generation who are heading into their retirement years. Continue reading "This Healthcare Company Is In The Middle Of A Huge Turnaround"
I posited that CVS presented a compelling investment opportunity in the healthcare space. This premise was rooted in the fact that CVS has been highly acquisitive, robust growth rate, growing its dividends over time and has an aggressive share buyback program in place. CVS recently reported robust earnings and continued to drive and position itself for long-term success. With its recent acquisitions and partnerships, specifically the acquisition Target’s pharmacies and Omnicare will significantly expand its footprint and ability to dispense prescriptions to the general public and in assisted living and long-term care facilities that serve the senior patient population. As the United States continues to absorb an ageing population alongside growing overall healthcare costs, more specifically prescription drug costs, CVS looks poised to benefit and continue to outperform the broader market. The most recent earnings report underscores this premise and CVS continues to deliver continued growth and positioning for long-term success.
2015 Q3 Earnings
Recently, CVS reported strong earnings for the quarter ending September 30th, 2015. Net revenue increased more than 10% to $36.8 billion while adjusted EPS increased to $1.28 or 11.5% as compared to the prior year quarter. Continue reading "This Healthcare Juggernaut Continues To Deliver"
Today I will be examining nine market sectors and looking at the top stocks in each of these sectors. I'll be looking at the consumer, healthcare, energy, financial, technology, industrial, materials and the utility sectors. Each of these sectors has a market leader that's in a strong trend and I'll share those top stocks with you in today's video.
One of the strongest market sectors in the past three months has been healthcare. This sector is up 11.6% and is the leading winner amongst all the sectors. I'll show you the strongest stock in this sector and how it could still go further on the upside. Continue reading "The Top Stocks In Each Market Sector"
As America ages, healthcare is going to be an important issue. How companies approach this is going to make a big difference to their bottom line.
The new Affordable Care Act, which is slowly being implemented, is another dimension that will have to be factored into the future. How companies adapt and make money in the future may have more to do with how they do business, rather than the drugs they are pushing.
Today, I'll be looking at four stocks, two that are in strong bullish trends according to the Trade Triangle technology, and two that are in downtrends.
From the long side based on the Trade Triangle technology:
Abbott Laboratories (NYSE:ABT)
Johnson & Johnson (NYSE:JNJ)
From the short side based on the Trade Triangle technology:
Amgen Inc. (NASDAQ:AMGN)
Pfizer, Inc. (NYSE:PFE)
Every success with MarketClub,
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