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Russia blindfolds, detains Ukraine nuclear plant chief
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S&P 500   3,585.62
DOW   28,725.51
QQQ   267.26
Want to Increase Your Conversion Rates? This Is the Biggest Threat to Your Success.
In 20 years, this little-known trader didn’t have a single losing year… (Ad)
Russia accused of 'kidnapping' head of Ukraine nuclear plant
EU chief: New Greece-Bulgaria gas pipeline 'means freedom'
In 20 years, this little-known trader didn’t have a single losing year… (Ad)
Danish Energy Agency says Nord Stream 2 gas pipeline under Baltic Sea appears to have stopped leaking gas
UK train strikes and energy hikes add to a week of turmoil
In 20 years, this little-known trader didn’t have a single losing year… (Ad)
Russia blindfolds, detains Ukraine nuclear plant chief
NIH to fund unproven ALS drugs under patient-backed law
S&P 500   3,585.62
DOW   28,725.51
QQQ   267.26
Want to Increase Your Conversion Rates? This Is the Biggest Threat to Your Success.
In 20 years, this little-known trader didn’t have a single losing year… (Ad)
Russia accused of 'kidnapping' head of Ukraine nuclear plant
EU chief: New Greece-Bulgaria gas pipeline 'means freedom'
In 20 years, this little-known trader didn’t have a single losing year… (Ad)
Danish Energy Agency says Nord Stream 2 gas pipeline under Baltic Sea appears to have stopped leaking gas
UK train strikes and energy hikes add to a week of turmoil
In 20 years, this little-known trader didn’t have a single losing year… (Ad)
Russia blindfolds, detains Ukraine nuclear plant chief
NIH to fund unproven ALS drugs under patient-backed law
S&P 500   3,585.62
DOW   28,725.51
QQQ   267.26
Want to Increase Your Conversion Rates? This Is the Biggest Threat to Your Success.
In 20 years, this little-known trader didn’t have a single losing year… (Ad)
Russia accused of 'kidnapping' head of Ukraine nuclear plant
EU chief: New Greece-Bulgaria gas pipeline 'means freedom'
In 20 years, this little-known trader didn’t have a single losing year… (Ad)
Danish Energy Agency says Nord Stream 2 gas pipeline under Baltic Sea appears to have stopped leaking gas
UK train strikes and energy hikes add to a week of turmoil
In 20 years, this little-known trader didn’t have a single losing year… (Ad)
Russia blindfolds, detains Ukraine nuclear plant chief
NIH to fund unproven ALS drugs under patient-backed law

CVS and Walgreens Show Why Investment Objectives Matter

CVS and Walgreens Show Why Investment Objectives Matter
  • Before the pandemic, many pharmacy chains were adapting to a wellness model
  • Both CVS and Walgreens are making significant in-roads into this space
  • What is current, and future, outlook for both stocks
At first glance, CVS Health NYSE: CVS) looks clearly superior to Walgreens Boots Alliance (NYSE: WBA). In fact, in the last 12 months, and even over the last five years, these are two stocks on different trajectories.  

But this is a time when understanding your “why” for owning a stock is so critical. This article will analyze the current, and future, outlook for both stocks and explain why each has a case to make for different investors.  

The Pharmaceutical Space is Changing  

Even before the pandemic, many pharmacy chains were adapting to a wellness model. The idea is to become a destination for customers to manage their overall health care instead of simply being a place they go to pick up a prescription. By taking on the role of a neighborhood clinic, pharmacy chains are adding more value for their patients.  

And both CVS and Walgreens are making significant in-roads into this space. CVS Health hosts over 1,100 MinuteClinic locations which are just one of the services provided by the company’s HealthHUB initiatives. 

For its part, Walgreens offers its Village MD and Walgreens Health initiatives. As of the company's most recent earnings report, the company has seeded the former in 22 markets and plans to have approximately 200 clinics open by the end of 2022. And the company is planning to have approximately 100 Walgreens Health Corners open by the end of the year.  


And both companies are active in virtual care with the ability of patients to access services through mobile apps and telehealth services. The Covid-19 pandemic made virtual care essential, but it also served as a proof of concept that, for some patients, may be a choice for managing chronic conditions. 

Will an Acquisition Have a “Significant” Impact on CVS Stock? 

CVS stock has been outperforming the market in the last year. And the stock is getting a lift from a Wall Street Journal report that it has made a bid to buy Signify Health. The acquisition makes sense if CVS intends to branch into the home-health sector. Signify Health uses technological solutions to aid in-home care. And, as the Journal reported, the company “offers in-home health evaluations for Medicare Advantage and other government-run managed care plans.”  

As of this writing, it’s unclear whether the acquisition will go through. However, if it does, it could signal the next leg up for a stock that’s climbed 26% in the past 12 months and is essentially flat for the year. The company is projected to post single-digit growth in both revenue and earnings over the next five years without the Signify Health acquisition. Analysts are also moderately bullish on the stock giving it a 12% upside. 

With that said, the company has been on a buying spree lately having bought Omnicare and Aetna for a total cost of over $40 billion dollars. While it does appear that the company’s free cash flow (FCF) should be more than enough to cover the purchase, short-term investors may be in for some volatility.  

Walgreens Boots Alliance is an Undervalued Dividend Stock 

In contrast to CVS Health, Walgreens has seen its share price fall over 50% in the last five years. And WBA stock is down 16% in just the last 12 months. Making matters worse, the short interest on the stock is 3x higher than that of CVS stock. There is clearly bearish sentiment on Walgreens.  

But there are bright spots if you are looking for under-the-radar value stocks. For starters, Walgreens pays a sustainable, growing dividend. In fact, the company has increased its dividend in each of the last 47 years.  

And, by any objective measure, WBA stock is undervalued. The stock is trading at just over 7x earnings and the company scores above the sector average in key areas such as profit margin, return on equity, and return on assets. Analysts tracked by MarketBeat give the stock a $46.25 price target which gives the stock a 17% upside. 

Companies Mentioned in This Article

CompanyMarketRank™Current PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
CVS Health (CVS)
2.4832 of 5 stars
$95.37-1.7%2.31%15.51Moderate Buy$118.35
Walgreens Boots Alliance (WBA)
2.8896 of 5 stars
$31.40-0.5%6.11%5.06Hold$45.75
Compare These Stocks  Add These Stocks to My Watchlist 

7 Agricultural Stocks to Buy to Keep Your Portfolio Well Fed

The agriculture sector is an evergreen sector of the economy. The world will always need food, and the companies in this sector help ensure the world is fed. In fact, agriculture stocks are typically considered to be in the same category as consumer staples because demand remains constant no matter what is happening in the broader economy.

This is also a diverse sector. And that can get confusing for investors. Investors can buy into pure-play companies that make fertilizer and pesticides. You can choose to look at companies such as Deere & Company (NYSE:DE) that supply the equipment that many farms use.

And as interest in sustainable agriculture is growing, so is this sub-sector which creates another path for investors, particularly those who are focused on ESG (environmental, social, and corporate governance) concerns.

This presentation highlights seven agricultural stocks that offer investors different ways to play the sector.

View the "7 Agricultural Stocks to Buy to Keep Your Portfolio Well Fed".

Chris Markoch

About Chris Markoch

Contributing Author: Retirement, Individual Investing

Chris Markoch is a freelance financial copywriter with over five years of experience covering various aspects of the financial markets. You may find his writing a little different than other stock articles you’ve read. And that’s OK with him. Chris doesn’t have a traditional finance background. What he does bring to the table is a strong business and marketing background having worked for agencies that serviced Fortune 500 companies. With that in mind, he isn’t overly impressed with what companies say, and more focused on what they do. And because buyer behavior dictates so much of what happens with a stock, Chris always keeps the end consumer close in mind. Chris has been writing for MarketBeat since 2018.

Contact Chris Markoch via email at CTMarkoch@msn.com.
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