Could I Have Been Completely Wrong About CVS?

  • Despite recent struggles, I remain bullish on CVS due to its potential for long-term growth and undervaluation, with a strong support level around $50.
  • CVS faces challenges like high debt levels and declining margins, but restructuring efforts and improved star ratings offer reasons for optimism.
  • The third quarter results showed revenue growth but significant declines in operating income and earnings per share, reflecting ongoing operational challenges.
  • With low valuation multiples and potential for higher free cash flow, CVS presents a compelling investment opportunity, justifying a "Buy" rating.

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I have already asked in a previous article, if I am wrong about CVS Health Corporation (NYSE:CVS). The article was published in January 2023 and in the article, I wrote the following conclusion:

Without doubt, there are several risks

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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  • Ah_Meng
    ·11-09
    I was once bullish on CVS but after the second revision down recently by the company, I dumped the stocks, just as the company rightly dumped its CEO. Best of luck…
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