#5 - CVS (NYSE:CVS)
Another undervalued stock to consider in the healthcare sector is CVS (NYSE:CVS). CVS stock has been falling since it released earnings in mid-February, but it’s hard to see why. It appears that the stock has been a victim of not meeting elevated expectations. The stock is trading about 10% below its 52-week high set in January, so it’s possible that this is just some profit taking.
Whatever the reason, CVS presents an attractive opportunity for a couple of reasons. First, the pharmacy chain will be front and center as part of the Covid-19 vaccine rollout. Although being a Covid-19 testing site didn’t produce significant revenue in 2020, the company is optimistic that getting customers into the store to “get the jab” will increase front of store sales.
That will give the company a chance to test the viability of its HealthHUB concept. This store-in-store concept will be manned by medical professionals and will allow CVS to offer expanded health care services and offerings. The company slowed the company’s rollout, but they are forecasting 1,500 locations will have HealthHUB’s by the end of the year.
About CVS Health
CVS Health Corporation provides health solutions in the United States. It operates through Health Care Benefits, Health Services, and Pharmacy & Consumer Wellness segments. The Health Care Benefits segment offers traditional, voluntary, and consumer-directed health insurance products and related services.
Read More - Current Price
- $59.60
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 13 Buy Ratings, 10 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $75.05 (25.9% Upside)
