Should You Buy CVS Health (CVS) Stock Ahead of Q4 Earnings?

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CVS Health Corporation (NYSE: CVS), the largest retail pharmacy chain, is in the business of making quality healthcare available to all. A few months ago, the company acquired healthcare risk assessment firm Signify Health in a multibillion-dollar deal, continuing efforts to grow its portfolio.

While CVS’s stock has been on a growth trajectory since an initial decline following the Covid-19 outbreak three years ago, it has experienced volatility over the past year and has slumped in the early weeks of 2023. The stock is currently trading below its long-term average. , the rating seems reasonable enough to take the plunge. According to the bullish forecast of experts, stocks will switch to higher growth mode and set a new record high by the end of the year.

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After resuming dividend hikes last year, the company offers a dividend yield of around 2.8%. Its continued focus on improving health care outcomes and reducing costs for customers has helped rival pharmacy chain Walgreens Boots Alliance, Inc. Gives better recognition to the business as compared to (Nasdaq: WBA)

CVS Health Corporation Q3 2022 Earnings Call Transcript

Over the years, CVS has expanded into new areas and further diversified its business — branching out into health insurance with the acquisition of Aetna and the broader pharmacy-benefits management division CVS Caremark. Those efforts have helped the company maintain its leadership position and remain largely unaffected by market challenges.



All three operating segments performed well in the most recent quarter, led by the Pharmacy Services segment, which includes the Pharmacy Benefits Management segment. Net revenue increased in the double digits to $81.2 billion in the third quarter of 2022, with same-store sales growth nearing 10%. Translated as 6% growth in income $2.09 per share, on an adjusted basis. CVS executives expect full-year revenue to come in slightly above last year’s levels.

From CVS Health’s Q3 2022 earnings call:

“Our digital omnichannel healthcare approach prioritizes experiences that matter most to consumers. Optimizing our digital tools for a seamless and convenient experience leads to greater engagement and satisfaction. For example, we recently launched a new functionality that gives patients more choice and convenience when filling prescriptions. Patients can expedite emergency prescriptions.” , and track their order status before they arrive at our pharmacy.

Q4 report by tap

While maintaining solid profitability over the past several years, the company has achieved something others haven’t — generating stronger-than-widely-expected earnings in every quarter since 2016. Market watchers estimate that earnings were flat in the fourth quarter, a sign that growth has eased in the final months of fiscal 2022. They also see Q4 adjusted earnings per share down 3% to $1.92. The report will be released in the early hours of February 8.

Four notable takeaways from Pfizer’s Q3 2022 earnings report

After a sluggish start to the year, CVS picked up momentum last week. However, the stock traded lower on Monday. It has lost about 9% in the last six months.


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