CVS - An Undervalued Healthcare Juggernaut

Noah Kiedrowski - Contributor - Biotech


CVS presents a compelling investment opportunity in the healthcare space. CVS has been highly acquisitive, growing its dividends over time and has an aggressive share buyback program in place. CVS is currently the largest prescription drug dispenser and the second-largest pharmacy benefits manager. Along with its recent acquisitions and partnerships 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 aging population alongside growing overall healthcare costs, more specifically prescription drug costs, CVS looks poised to benefit and continue to outperform the broader market.

CVS Health – A true healthcare company

Approximately one year ago, CVS announced that it had removed all tobacco products from its stores nationwide and would no longer sell any tobacco related products to its customers. This was a bold move as CVS has become the trailblazer in establishing itself as a true health oriented company. Ceasing tobacco sales negatively impacted overall sales, however, this move established itself as a true healthcare focused company. "One year ago, we stopped selling tobacco products because it conflicted with our purpose of helping people on their path to better health," said Troyen A. Brennan, M.D., M.P.H., Chief Medical Officer, CVS Health. "Today, we are excited to release new data demonstrating the positive impact our decision has had on public health overall as shown by a measurable decrease in the number of cigarette purchases across all retailers." Personally, I like companies that stand behind their name and practice what they advocate and, in this case, it's promoting overall health and wellbeing. Continue reading "CVS - An Undervalued Healthcare Juggernaut"