CVS Health Corporation (CVS)

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Florida reaches $878 million opioid settlements with CVS, Teva, others
By: Reuters | March 30, 2022

Florida has reached more than $878 million in settlements with CVS Health Corp (NYSE:CVS) and three drug companies to resolve claims and avert a trial next month over their roles in fueling an opioid epidemic in the third most populous U.S. state.

CVS will pay $484 million, Teva Pharmaceutical Industries (NYSE:TEVA) Ltd will pay $194.8 million, Abbvie Inc's Allergan (NYSE:AGN) unit will pay $134.2 million and Endo International (NASDAQ:ENDP) Plc will pay $65 million, Florida's attorney general Ashley Moody said in a statement on Wednesday.

Most of the money will be spent on opioid abatement. Teva will also provide $84 million of its generic Narcan nasal spray, which can temporarily reverse the effects of opioid overdoses.

The four companies denied wrongdoing in agreeing to settle. Endo's accord had been reached in January.

West Virginia reached a similar $26 million settlement with Endo on Wednesday, attorney general Patrick Morissey said in a press conference.

After the settlements, Florida and West Virginia will both begin pared-back opioid trials next week. West Virginia will proceed to trial on April 4 against Johnson & Johnson (NYSE:JNJ), Teva and Allergen. Florida will proceed to trial against pharmacy chain Walgreens, with jury selection scheduled to begin on April 5.

Walgreens said its 2012 opioid-related settlement with Florida covered the state's latest claims, and that it will defend against "unjustified attacks" on its pharmacists.

CVS and Teva said they would defend against other opioid lawsuits, and Teva said it is "actively" negotiating a national settlement of similar claims. Allergan said its settlement also covers claims for generic opioids it sold to Teva in 2016.

Endo did not immediately respond to requests for comment.

Florida announced the settlements nine days after Rhode Island reached similar accords with Teva and Allergan valued at $107 million.

More than 500,000 people have died from opioid overdoses in the past two decades nationally, including 75,673 in the year ending April 2021, according to the U.S. Centers for Disease Control and Prevention.

On Feb. 25, Johnson & Johnson and drug distributors AmerisourceBergen (NYSE:ABC) Corp, Cardinal Health Inc (NYSE:CAH) and McKesson Corp (NYSE:MCK) reached final settlements worth $26 billion over their roles in the nationwide epidemic.

State, local and Native American tribal governments in the United States have filed more than 3,300 lawsuits accusing drugmakers such as OxyContin maker Purdue Pharma of fueling opioid abuse, including by downplaying the risks of addiction.

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Deutsche Bank Aktiengesellschaft Downgrades CVS Health (CVS) to Hold
By: MarketBeat | March 29, 2022

• CVS Health (NYSE:CVS - Get Rating) was downgraded by investment analysts at Deutsche Bank Aktiengesellschaft from a "buy" rating to a "hold" rating in a research note issued to investors on Tuesday, Briefing.com reports. They presently have a $110.00 price objective on the pharmacy operator's stock. Deutsche Bank Aktiengesellschaft's price target points to a potential upside of 1.81% from the company's previous close...

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[FUNMAN]

CVS Health and Fresno housing collaborate to address affordable housing crisis and provide healthy homes in Fresno County

A rendered graphic of The Arthur @ Blackstone affordable housing complex in Fresno, California.

https://www.cvshealth.com/news-and-insights/press-releases/cvs-health-and-fresno-housing-collaborate-to-address-affordable

WOONSOCKET, R.I. — CVS Health and Fresno Housing have collaborated to build new affordable housing in Fresno, California. Through Red Stone Equity Partners, CVS Health will invest an estimated $18.4 million into the Arthur @ Blackstone, a new Fresno Housing development planning to break ground this spring.

Twenty of the units at the Arthur @ Blackstone will be reserved for special needs tenants, specifically transition age youth considered to be chronically homeless, homeless, or at-risk of becoming chronically homeless. This includes youth who are aging out of the foster care system, transitioning from institutions, and youth with a history of involvement in the justice system. The remaining units will target low-income families.

In addition, residents will benefit from comprehensive case management and full wrap around supportive services coordinated by the Fresno County Department of Behavioral Health and various contracted service providers.

The Arthur @ Blackstone is part of CVS Health’s commitment to addressing housing insecurities in the Fresno community and is one of three housing investments CVS Health has made with Fresno Housing over the past three years. Through investment funds sponsored by Red Stone Equity Partners, in 2019, CVS Health made a $4.6 million investment in Villages at Paragon and in 2020, announced it was investing $2.1 million in the Villages at Broadway.

“To make a meaningful impact, we need to address social determinants of health at the local level and be intentional with our approach,” said Jeff Hermosillo, California Market President, Aetna, a CVS Health company. “We’re committed to investing in the Fresno community and meeting the needs of individuals and families by providing them with resources that enable equal opportunity for achieving good health.”

This investment will continue to deepen the successful collaboration between Fresno Housing and CVS Health to reduce health disparities and advance health equity through quality, affordable housing. The Arthur @ Blackstone will consist of 41 housing units near Manchester Center in Fresno and will include a space where supportive services will be provided that aim to improve health outcomes for the residents.

“We know that when families have access to affordable housing, they are better able to improve their physical, mental, and emotional health. That’s why our partnership with CVS Health is exciting and innovative for the families we serve in our community. We are honored to be selected by CVS Health again to further our mission to provide affordable, healthy housing throughout Fresno County,” said Tyrone Roderick Williams, Chief Executive Officer, Fresno Housing.

Fresno Housing has been integrating the worlds of health and housing for the past 20 years by providing affordable housing and supportive services for over 4,000 families in Fresno County.

The investment in Arthur @ Blackstone builds on CVS Health’s commitment to the Fresno community. Earlier this year, CVS Health introduced its new Health Zones initiative to Fresno. The initiative provides concentrated local investments to reduce health disparities and advance health equity in underserved communities across the country. In Fresno, CVS Health is working with Fresno Economic Opportunities Commission, Clinica Sierra Vista, and the Central California Food Bank, to help improve health outcomes and build healthier communities in Fresno by addressing social determinants of health, including housing, education, access to food, labor, transportation, and health care access.

As part of CVS Health’s overall commitment to advance health equity in America, it invested $185 million in affordable housing nationwide in 2021 and $1.3 billion over the past 20 years, including $37.2 million in affordable housing in Fresno. Through these investments, CVS Health has been able to provide underserved communities with quality housing based on the unique needs of the population.

As part of CVS Health’s overall commitment to advance health equity in America, it invested $185 million in affordable housing nationwide in 2021 and $1.3 billion over the past 20 years, including $37.2 million in affordable housing in Fresno. Through these investments, CVS Health has been able to provide underserved communities with quality housing based on the unique needs of the population.

About CVS Health
CVS Health is the leading health solutions company, delivering care like no one else can. We reach more people and improve the health of communities across America through our local presence, digital channels and approximately 300,000 dedicated colleagues – including more than 40,000 physicians, pharmacists, nurses, and nurse practitioners. Wherever and whenever people need us, we help them with their health – whether that’s managing chronic diseases, staying compliant with their medications, or accessing affordable health and wellness services in the most convenient ways. We help people navigate the health care system – and their personal health care – by improving access, lowering costs and being a trusted partner for every meaningful moment of health. And we do it all with heart, each and every day. Learn more at www.cvshealth.com.


Media contacts
Monica Prinzing
831-241-8294
[e-mail]

Brandi Borboa Johnson
559-908-7269
[e-mail]

Tuesday, March 29, 2022

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Analysts Expect CVS (CVS) Will Post Quarterly Sales of $75.17 Billion
By: MarketBeat | March 25, 2022

• Brokerages forecast that CVS Health Co. (NYSE:CVS - Get Rating) will report sales of $75.17 billion for the current fiscal quarter, according to Zacks Investment Research. Seven analysts have provided estimates for CVS Health's earnings. The lowest sales estimate is $72.45 billion and the highest is $76.50 billion. CVS Health reported sales of $69.10 billion during the same quarter last year, which would suggest a positive year-over-year growth rate of 8.8%...

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Short Interest in CVS Health Co. (CVS) Declines By 19.2%
By: MarketBeat | March 7, 2022

• CVS Health Co. (NYSE:CVS - Get Rating) was the recipient of a large drop in short interest during the month of February. As of February 15th, there was short interest totalling 11,620,000 shares, a drop of 19.2% from the January 31st total of 14,390,000 shares. Based on an average daily volume of 6,730,000 shares, the days-to-cover ratio is presently 1.7 days. Approximately 0.9% of the shares of the company are short sold...

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CVS Health Co. Receives Average Rating of "Buy" from Brokerages
By: MarketBeat | March 6, 2022

• Shares of CVS Health Co. (NYSE:CVS - Get Rating) have earned an average recommendation of "Buy" from the twenty-five brokerages that are covering the company, Marketbeat.com reports. Two equities research analysts have rated the stock with a hold recommendation and eighteen have given a buy recommendation to the company. The average 1-year price target among analysts that have issued a report on the stock in the last year is $112.95...

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CVS Tries to Give Its Business a Booster Shot
By: TheStreet | February 23, 2022

• The pharmacy chain has been reinventing its business, and its latest move fits with those efforts.

CVS Health (CVS) wants to be more than a place where you pick up your prescription while maybe buying a candy bar or a soda as you do it. The company has recast its pharmacies as community health centers, adding Minute Clinics that can handle nonurgent health-care needs and testing concepts including health-care concierges to help customers navigate a challenging landscape.

This slow and steady evolution essentially began in February 2014, when the Woonsocket, R.I., company stopped selling cigarettes. That move cost the company hundreds of millions in profitable sales, and some thought it might lead to the chain dropping alcohol and candy from its stores. That was never the case, a CVS spokesperson wrote in an email to The Motley Fool at the time of the removal.

"The decision to stop selling tobacco products underscores our role in the evolving health care system. Smoking is the leading cause of premature illness and death in the United States. Unlike those other products, which are OK in moderation, no amount of tobacco use is safe," wrote CVS spokesman Danielle Marcus.

Now, CVS is continuing its evolution into a healthcare company with a new line of products.

CVS Wants to Reach Aging Americans

As a health-care company, CVS fully understands that targeting older customers makes good sense. It has done that with some of its in-store services, and it will grow those efforts with a new line of six home-health-care products aimed squarely at older Americans.

"Rooted in customer insights and specifically designed to meet the needs of the aging, caregivers, and those living with disabilities, these bathroom safety and mobility products merge function and design," the company said in a news release.

"The products were developed in collaboration with Michael Graves Design, pioneers of the Design for All movement, which leverages the power of design to improve people's everyday lives."

The product line includes a variety of products ranging from comfort-grip canes and easy-fold travel walkers to convertible shower chairs and 3-in-1 comfort commodes. Most of the line can be purchased on the company's website and will be hitting shelves through March at more than 6,000 CVS Pharmacy retail locations nationwide.

CVS Sees a Huge Market

As the American population ages, that creates new markets for CVS. The company has designed these new products with that in mind.

"There will be more than 70 million Americans ages 65 and older by 2030, along with millions of caregivers and other customers who need these types of products because of illness or while recuperating from an accident," CVS Vice President Brenda Lord said in a statement.

"By filling an unmet need for functional, but beautifully designed products, we aim to help improve the everyday lives of those who rely on these tools and who are seeking a more premium and customized market offering."

CVS conducted "extensive in-home research ... with end users, caregivers, and clinicians to guide the creation of the new line."

That research showed demand for "products with improved usability, and an aesthetically pleasing, minimalistic style, which is reflected in the creation of the CVS Health by Michael Graves Design portfolio."

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[Pro-Life]

Excellent! TY!!!

[FUNMAN]

CVS Health to Present at the 2022 Barclays Global Healthcare Conference
Tuesday, February 22, 2022

https://www.cvshealth.com/news-and-insights/press-releases/cvs-health-to-present-at-the-2022-barclays-global-healthcare

WOONSOCKET, R.I. — CVS Health® (NYSE: CVS) today announced that Executive Vice President and Chief Financial Officer Shawn Guertin will participate in a fireside chat with investors at the Barclays Global Healthcare Conference on March 15, 2022, at approximately 8:00 am ET.

An audio webcast of the event will be broadcast simultaneously on the Investor Relations portion of the CVS Health website at investors.cvshealth.com where it will be archived for a period of one year.

About CVS Health
CVS Health is the leading health solutions company, delivering care like no one else can. We reach more people and improve the health of communities across America through our local presence, digital channels and approximately 300,000 dedicated colleagues — including more than 40,000 physicians, pharmacists, nurses, and nurse practitioners. Wherever and whenever people need us, we help them with their health — whether that’s managing chronic diseases, staying compliant with their medications, or accessing affordable health and wellness services in the most convenient ways. We help people navigate the health care system — and their personal health care — by improving access, lowering costs and being a trusted partner for every meaningful moment of health. And we do it all with heart, each and every day. Learn more at www.cvshealth.com.

Media contact
T.J. Crawford
212-457-0583
[e-mail]

Investor contact
Susie Lisa, CFA
401-770-4050
[e-mail]

[FUNMAN]

Aetna Better Health selected to continue serving Louisiana Medicaid program

https://www.cvshealth.com/news-and-insights/press-releases/aetna-better-health-selected-to-continue-serving-louisiana

Tuesday, February 22, 2022

BATON ROUGE, La. — Aetna Better Health of Louisiana, a CVS Health® company (NYSE: CVS), today announced that the Louisiana Department of Health intends to award the company a new statewide Medicaid contract through the Louisiana Medicaid Managed Care Program.

Aetna Better Health has served Medicaid enrollees in Louisiana for more than seven years. Through the contract award, Aetna Better Health of Louisiana would continue to serve several Medicaid eligible populations, including those enrolled in the Louisiana Children's Health Insurance Program (CHIP), Temporary Assistance for Needy Families (TANF), Supplemental Security Income (SSI), Louisiana Medicaid expansion population (EXP) and Specialized Behavioral Health (SBH) programs.

"We appreciate that the state of Louisiana continues to have confidence in Aetna Better Health's commitment to better health outcomes for Louisianans," said Kelly Munson, President, Aetna Medicaid. "We look forward to furthering our delivery of personalized, holistic care - with a deep focus on population health and health equity to continue to increase positive impacts on our members' health and quality of life."

Aetna Better Health of Louisiana has been working to improve the health of Medicaid enrollees and their communities. The organization has reduced health care disparities and achieved the highest percentage of COVID-19 vaccinated enrollees among all Medicaid plans serving Louisiana, in collaboration with CVS Health and local community-based organizations. In addition, CVS Health has offered more than 45 Project Health events, providing more than 2,700 no-cost biometric screenings in the state with more scheduled.

Aetna Better Health of Louisiana has also continued to support the social care needs of underserved populations in the state. Since 2019, the organization has provided over $775,000 in funding to Louisiana community-based organizations, helping to fill needs such as food insecurity, maternal health and education. In addition, CVS Health is making a $25 million investment to help build 224 affordable housing units for families and seniors in Louisiana.

"Our focus is on continuing to work closely with our state partners in Louisiana, helping them achieve their objectives for the Louisiana Medicaid Managed Care Program," said Richard Born, CEO Aetna Better Health of Louisiana. "We'll catalyze the efforts of the state and community partners and deliver innovative programs and services that support a healthy Louisiana."

Aetna Better Health serves over 150,000 enrollees across the state through the Louisiana Medicaid Managed Care Program. The new contract is anticipated to begin later this year, with the option of renewals, pending the completion of the state's protest period and contract negotiations.

About Aetna Medicaid
Aetna Medicaid Administrators LLC (Aetna Medicaid), a CVS Health company, has over 30 years of experience managing the care of the most medically vulnerable, using innovative approaches and a local presence in each market to achieve both successful health care results and effective cost outcomes. Aetna Medicaid has particular expertise serving high-need Medicaid members, including those who are dually eligible for Medicaid and Medicare. Currently, Aetna Medicaid owns and/or administers Medicaid managed health care plans under the names of Aetna Better Health and other affiliate names. Together, these plans serve approximately 2.8 million people in 16 states, including Arizona, California, Florida, Illinois, Kansas, Kentucky, Louisiana, Maryland, Michigan, New Jersey, New York, Ohio, Pennsylvania, Texas, Virginia and West Virginia. For more information, see www.aetnabetterhealth.com.

About CVS Health
CVS Health is the leading health solutions company, delivering care like no one else can. We reach more people and improve the health of communities across America through our local presence, digital channels and approximately 300,000 dedicated colleagues including more than 40,000 physicians, pharmacists, nurses, and nurse practitioners. Wherever and whenever people need us, we help them with their health whether that's managing chronic diseases, staying compliant with their medications, or accessing affordable health and wellness services in the most convenient ways. We help people navigate the health care system and their personal health care by improving access, lowering costs and being a trusted partner for every meaningful moment of health. And we do it all with heart, each and every day. Learn more at www.cvshealth.com.

Media contact
Robert Joyce
[e-mail]


About CVS Health
CVS Health is the leading health solutions company that delivers care like no one else can. We help people navigate the health care system — and their personal health care — by improving access, lowering costs and being a trusted partner for every meaningful moment of health. And we do it all with heart, each and every day.

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CVS Releases FY 2022 Earnings Guidance
By: MarketBeat | February 21, 2022

• CVS Health (NYSE:CVS) issued an update on its FY 2022 earnings guidance on Monday morning. The company provided earnings per share (EPS) guidance of $8.100-$8.300 for the period, compared to the Thomson Reuters consensus estimate of $8.280. The company issued revenue guidance of -...

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[FUNMAN]

CVS Pharmacy Develops Innovative, Modern Line of Home Health Care Products

Tuesday, February 22, 2022

Guided by consumer research, this collection brings functional and stylish products to the aging, caregivers and those living with disabilities

WOONSOCKET, R.I., Feb. 22, 2022 /PRNewswire/ -- CVS Pharmacy, the retail division of CVS Health (NYSE: CVS) today announced the launch of six new innovative home health care products as an extension of the company's exclusive CVS Health product line. Rooted in customer insights and specifically designed to meet the needs of the aging, caregivers and those living with disabilities, these bathroom safety and mobility products merge function and design. The products were developed in collaboration with Michael Graves Design, pioneers of the Design for All movement, which leverages the power of design to improve people's everyday lives.

The new CVS Health by Michael Graves Design assortment features a variety of products ranging from comfort grip canes and easy-fold travel walkers to convertible shower chairs and 3-in-1 comfort commodes. Most products are now available on CVS.com and hitting shelves through March at more than 6,000 CVS Pharmacy retail locations nationwide.

"There will be more than 70 million Americans ages 65 and older by 2030, along with millions of caregivers and other customers who need these types of products because of illness or while recuperating from an accident," said Brenda Lord, Vice President, Store Brands, CVS Health. "By filling an unmet need for functional, but beautifully designed products, we aim to help improve the everyday lives of those who rely on these tools and who are seeking a more premium and customized market offering."

Extensive in-home research was conducted with end users, caregivers, and clinicians to guide the creation of the new line. This research helped uncover and solve shortcomings in currently available home health care products. Consumer insights also confirmed a desire for home health care products with improved usability, and an aesthetically pleasing, minimalistic style, which is reflected in the creation of the CVS Health by Michael Graves Design portfolio.

The product assortment serves as the latest innovation of CVS Pharmacy's Store Brands portfolio, which satisfy unmet customer needs and offer premium products at affordable prices. This latest refresh to the home health care category represents CVS Pharmacy's commitment to transforming health care into a more personalized experience through new technologies and innovations that can help improve quality of everyday life.

For more than 50 years, CVS Pharmacy has continued to innovate with its exclusive Store Brand family of products. All CVS Store Brands products carry a commitment to quality, safety, and trust, and hold a 100% money back guarantee. With thousands of stores throughout the country, CVS is well positioned to provide the products that people need, when and where they need them. For more information on these new products and to shop online, customers can visit CVS.com/shop/content/michael-graves.

About CVS Pharmacy
CVS Pharmacy, the retail division of CVS Health, is America's leading retail pharmacy with nearly 10,000 locations, including over 1,700 pharmacies inside of Target and Schnucks grocery stores. We are committed to delivering innovative health solutions that create a simpler, more accessible experience for patients, customers, and caregivers. CVS Pharmacy is the only national pharmacy to remove tobacco products from its shelves and has taken a leadership role in responding to the COVID-19 pandemic by making testing and vaccinations available at locations across the United States. For the latest product and service offerings, visit www.cvs.com or download the CVS Pharmacy App.

Media Contact
Matt Blanchette
401-524-6185
[e-mail]

SOURCE CVS Health

About CVS Health
CVS Health is the leading health solutions company that delivers care like no one else can. We help people navigate the health care system — and their personal health care — by improving access, lowering costs and being a trusted partner for every meaningful moment of health. And we do it all with heart, each and every day.

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CVS Health Co. (CVS) Short Interest Down 15.2% in January
By: MarketBeat | February 18, 2022

• CVS Health Co. (NYSE:CVS) saw a large decline in short interest in January. As of January 31st, there was short interest totalling 14,390,000 shares, a decline of 15.2% from the January 15th total of 16,970,000 shares. Based on an average daily trading volume, of 6,530,000 shares, the short-interest ratio is presently 2.2 days...

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[Canna_Business]

Why can't primary care doctors prescribe medical cannabis to their patients?

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CVS Stock is a Good Hideout During Volatility
By: TheStreet | February 18, 2022

• Recently raised guidance and a decent dividend offer investors a safe harbor for now, Real Money's Stephen 'Sarge' Guilfoyle says.

Shares of CVS Health CVS are attractive because they are inexpensive and a good addition to a portfolio, especially while the market is volatile, Stephen “Sarge” Guilfoyle argues.

“CVS is a good place to hide in a volatile marketplace,” he wrote in a recent Real Money Pro column. “In addition, the firm pays shareholders 2.1% or $2.20 per year just to hang around.”

In it's latest 8-K filing with the SEC, CVS increased its full year 2021 adjusted EPS guidance to $8.33-$8.38 from $8.00. These numbers reflected what Wall Street was looking for, including the $8.03 adjusted number.

The drugstore company also reaffirmed guidance for 2022 GAAP EPS to $7.04-$7.24 and guidance for adjusted 2021 EPS of $8.10-$8.30. Wall Street estimated at $8.27 on this metric.

The company’s shares “seem cheap at 13 times forward looking earnings,” and are inexpensive because the fundamentals could use improvement, Guilfoyle wrote.

“That said the firm certainly seems to have the wind at its sails right now, and I am long the name,” he wrote. “Yes, I took profits a ways back, and missed some of the gravy.”

The company’s balance sheet also could use some work and is “not wonderful,” Guilfoyle wrote. The assets of CVS are outweighed by current liabilities even though the retailer’s cash levels are increasing.

One good sign is that the total assets still outweigh total liabilities as CVS has been paying down its long-term debt.

Guilfoyle’s target price is $116.

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[Pro-Life]

For me, a match made in heaven!!!

[FUNMAN]

MinuteClinic recognized for national “Age-Friendly Health Systems” commitment

All MinuteClinic markets now provide "Age-Friendly" care

WOONSOCKET, R.I. — CVS Health (NYSE: CVS) today announced that MinuteClinic , the retail health clinic inside select CVS Pharmacy and Target stores, has been recognized for achieving "Age-Friendly Health Systems-Committed to Care Excellence" in all of its 74 regions across the United States. MinuteClinic is the largest retail clinic network in the U.S. to adopt Age-Friendly care system-wide.

In 2020, The John A. Hartford Foundation sponsored a partnership between MinuteClinic, Case Western Reserve University Frances Payne Bolton School of Nursing and the Institute for Healthcare Improvement (IHI) to produce training tools and resources to be used at MinuteClinic to further improve and evolve how MinuteClinic cares for older adults. This training has enabled MinuteClinic to adopt Age-Friendly care in every clinic nationwide for patients 65 years and older.

Research shows that providing the older adult population with specific, Age-Friendly care has significant benefits, including a reduction in the number of emergency department visits, hospitalizations and hospital readmissions, improved mobility, a reduction in medication-related problems, and early identification of memory loss and depression.

Age-Friendly visits at MinuteClinic include questions that are part of the "4Ms Framework" a series of practices focused on addressing four essential elements of care for older patients:

* What Matters: Know and align care with each older adult's specific health outcome goals and care preferences including, but not limited to, end-of-life care, and across settings of care.

* Medication: If medication is necessary, use Age-Friendly medications that do not interfere with What Matters to the older adult, Mobility, or Mentation across settings of care.

* Mentation: Prevent, identify, treat, and manage dementia, depression, and delirium across settings of care.

* Mobility: Ensure that older adults move safely every day in order to maintain function and do What Matters.

MinuteClinic providers also share healthy aging tips and suggestions older patients can implement in their everyday life. For those opting to seek care through E-Clinic visits, providers are able to assess the "4Ms" while patients are in the safety and comfort of their own home.

"As MinuteClinic continues to evolve to meet the needs of patients of all ages, we remain committed to implementing the latest best practices in health care," said Chief Nurse Practitioner Officer at MinuteClinic, Angela Patterson. "The Age-Friendly Health Systems initiative is an important part of our overarching vision to transform patient care."

The Age-Friendly Health Systems initiative was launched in 2017 by The John A. Hartford Foundation and IHI, in partnership with the American Hospital Association and Catholic Health Association of the US. For more information, visit www.ihi.org/agefriendly.

To learn more about MinuteClinic's locations and services, visit cvs.com/minuteclinic.

About CVS Health
CVS Health is the leading health solutions company, delivering care in ways no one else can. We reach more people and improve the health of communities across America through our local presence, digital channels and approximately 300,000 dedicated colleagues including more than 40,000 physicians, pharmacists, nurses, and nurse practitioners. Wherever and whenever people need us, we help them with their health whether that's managing chronic diseases, staying compliant with their medications, or accessing affordable health and wellness services in the most convenient ways. We help people navigate the health care system and their personal health care by improving access, lowering costs and being a trusted partner for every meaningful moment of health. And we do it all with heart, each and every day. Learn more at www.cvshealth.com.

Media contact
Christine Cramer
401-626-5675 (Cell)
[e-mail]

[FUNMAN]

The Street was going to appreciate anything after yesterday's beat down.

[Pro-Life]

Nice... and the market seems to appreciate it.

[FUNMAN]

CVS Pharmacy Announces 2022 Supplier Diversity & Minority Owned Summit
Thursday, February 10, 2022

The retail division of CVS Health will seek diverse businesses and evaluate opportunities in line with its ongoing work to meet the needs of customers

WOONSOCKET, R.I. — CVS Pharmacy today announced its second annual Supplier Diversity & Minority Owned Summit, hosted from April 5 - 8, in partnership with ECRM and RangeMe. This summit is part of CVS Pharmacy's ongoing efforts to bring a broader assortment of products from diverse suppliers and brands to customers and work with those suppliers and brands to ensure mutual success through customized support and resources.

CVS Pharmacy currently carries more than 100 diverse-owned brands across front store categories and is committed to increasing that selection with enhanced merchandising protocols for diverse suppliers. Within beauty and personal care, for example, CVS Pharmacy has made significant strides in amplifying its commitment to build out diverse-owned assortments. It has recently added several new Black-owned brands and nearly 200 items from new and existing Black-owned brands, with many more launching across the category in 2022.

"We're at our best when our priorities and actions reflect the needs of the communities we serve," said Andrea Harrison, VP of Merchandising, Beauty & Personal Care at CVS Health. "We'll continue to feature the brands and trends that speak to the diversity of our customers while simultaneously offering the value, innovation and trust they expect from the products across our aisles."

The 2022 summit will focus on products across beauty, grocery, personal care, health, wellness, household and general merchandise. Vendors can learn more and apply to join the virtual event by visiting www.rangeme.com/cvsdiversity through February 14, 2022.

To further support CVS Pharmacy's commitment to increasing its selection of diverse-owned brands, new tools and processes have been created to ensure increased diverse spend and a more inclusive supplier and product landscape, including:

CVS Merchandising, in partnership with the CVS Health Enterprise Procurement Supplier Diversity team, has hosted a Supplier Diversity in Merchandising program annually for the past four years to identify new diverse suppliers and assist in eliminating barriers to starting in retail.

CVS Health's Supplier Diversity program hosts an annual Executive Learning Series, which provides training in a wide variety of skills around pitching and landing expanded retail distribution of products, including the opportunity to engage in individualized executive coaching.

CVS Pharmacy merchandisers attend supplier diversity advocacy conferences, such as National Minority Supplier Development Council (NMSDC) and Women's Business Enterprise National Council (WBENC), to meet with diverse suppliers.

CVS Pharmacy works to reinforce the diversity of both product assortment and suppliers throughout its planogram process to deliver relevant offerings to the communities it serves.

Additionally, with the goal of achieving mutual success, CVS Pharmacy offers unique opportunities to smaller diverse suppliers entering mass retail, including:

Providing resources, training and mentoring for new and/or growing diverse suppliers as they gain a foothold in the retail environment.

Developing refreshed intake forms to ensure specific supplier needs are appropriately flagged and accommodated.

At this Supplier Diversity & Minority Owned Summit, all sourcing and product submissions will be made through RangeMe, the industry-standard online product discovery and sourcing platform. ECRM will then create curated meeting schedules and facilitate face-to-face virtual meetings with the merchants, so that suppliers can present new and innovative products and solutions for CVS Pharmacy customers. All meetings will be conducted on ECRM's virtual meeting platform, ECRM CONNECT, on April 5 - 8. ECRM's team will help ensure that the meetings are executed with the utmost efficiency.

About CVS Pharmacy

CVS Pharmacy, the retail division of CVS Health, is America's leading retail pharmacy with nearly 10,000 locations, including over 1,700 pharmacies inside of Target and Schnucks grocery stores. We are committed to delivering innovative health solutions that create a simpler, more accessible experience for patients, customers, and caregivers. CVS Pharmacy is the only national pharmacy to remove tobacco products from its shelves and has taken a leadership role in responding to the COVID-19 pandemic by making testing and vaccinations available at locations across the United States. For the latest product and service offerings, visit www.cvs.com or download the CVS App.

Media Contact
Courtney Coelho
401-465-9209
[e-mail]

[FUNMAN]

Perspective: Price $105.63 Day's Change -5.20 (-4.69%)

https://www.cvshealth.com/sites/default/files/media-gallery/cvs-health-earnings-report-2021-q4.pdf


Look at the HUM chart for the last 6-months.

They guided below The Street’s hopes. It’s because they announced going after fewer but better Medicare customers. The Street is adjusting.

Now remember that for 6+/- months we’ve known about CVS planning to shutter 900’ish stores. There will be 1-time expenses and revenues can only be made up inside of other business segments.

Let’s assume CVS knows best regarding what they are doing and The Street’s retail investors are reactionary and forgot.

If the PPS dips into the mid 90’s and a Ukrainian war and sanctions don’t ratchet up to stupid levels, any PPS in the mid $90’s is a buying opportunity.

Just my thoughts. Lots of ifs.

[DiscoverGold]

CVS Blasts Q4 Earnings Forecast As Covid Vaccines Top 20 Million, Boosting Retail And Pharmacy Sales
By: TheStreet | February 9, 2022

• CVS said it administered more than 28 million Covid vaccines and tests over the three months ending in December, helping retail and pharmacy sales post solid year-on-year gains.

CVS Health Corp. (CVS) posted stronger-than-expected fourth quarter earnings Wednesday as its retail division revenues got a solid boost from the 20 million Covid vaccinations its administered over the three months ending in December.

CVS said adjusted earnings for the three months ending in December were pegged at $1.98per share, up 52.3% from the same period last year and firmly ahead of the Street consensus forecast of $1.83 per share. Group revenues, CVS said, rose 10.1% from last year to $76.6 billion, again topping analysts' estimates of a $75.55 billion tally.

Same sore sales were up 13.4% from last year, CVS said, while pharmacy store sales rose 11.8%, both benefiting from the group's administering of 20 million Covid vaccinations and a further 8 million tests over the three month period.

Looking into the 2022 financial year, CVS made no changes to its December profit forecast which includes a target range of $8.10 to $8.30 per share and revenues of between $304 billion to $309 billion.

"We're engaging millions of customers across our businesses and in our community health destinations, becoming an even bigger part of their everyday health," said CEO Karen Lynch. "That's clearly reflected in our performance, but more importantly in our potential."

CVS shares were marked 1% lower in pre-market trading immediately following the earnings release to indicate an opening bell price of $109.66 each, a move that would still leave the stock with a six month gain of around 33%.

Pharmacy Services revenues rose 8.2% to $39.34 billion, CVS said, Retail sales rose 12.6% to $24.1 billion, "primarily driven by increased prescription and front store volume, the administration of COVID-19 vaccinations and diagnostic testing, as well as brand inflation."

The group's healthcare benefits division saw sales rise 8.4% to $20.7 billion as it added Aetna's operations to its legacy business.

Read Full Story »»»

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[Pro-Life]

Earnings call on Wednesday before the market open.

[DiscoverGold]

CVS Health Co. (CVS) EVP Sells $5,273,070.00 in Stock
By: MarketBeat | February 5, 2022

• CVS Health Co. (NYSE:CVS) EVP Troyen A. Brennan sold 47,937 shares of the stock in a transaction that occurred on Thursday, February 3rd. The stock was sold at an average price of $110.00, for a total value of $5,273,070.00. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website...

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http://openinsider.com/search?q=cvs

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[Canna_Business]

Problem: Insurance companies can't cover medical cannabis costs as long as it is a schedule-1 drug.

[Canna_Business]

Solution: The DEA needs to de-schedule cannabis defining it to have medical value.

[DiscoverGold]

Earnings Previews: CVS Health Corp. (NYSE: CVS)
By: 24/7 Wall St. | February 7, 2022

Here is a look at three firms scheduled to report results first thing Wednesday morning.

CVS Health

The country’s second-largest provider of health care plans, CVS Health Corp. (NYSE: CVS), has seen its stock price rise by more than 54% in the past 12 months. The 12-month gain is about 5% above that of UnitedHealth and, for all of 2021, more than 9% larger than UnitedHealth’s price increase of around 45%. The stock posted its 52-week high last week, just $5 short of its all-time high posted in 2015.

Analysts remain bullish on the stock, with 21 of 28 brokerages giving the stock a Buy or Strong Buy rating. The rest rate the shares at Hold. At a price of around $109.20 a share, the stock’s upside potential based on a median price target of $115 is about 5.3%. At the high price target of $125, the implied upside is 14.4%.

The consensus revenue estimate for the fourth quarter of fiscal 2021 is $75.47 billion, up 2.3% sequentially and about 8.5% year over year. Adjusted EPS are forecast at $1.88, down 4.6% sequentially and up 44.6% year over year. For the full fiscal year, analysts are looking for EPS of $8.29, up 10.5%, and revenue of $260.93 billion, up about 8.3% year over year.

CVS stock trades at 13.2 times expected 2021 EPS, 13.2 times estimated 2022 earnings of $8.27 and 12.2 times estimated 2023 earnings of $8.93 per share. The stock’s 52-week range is $68.02 to $110.15. CVS Health pays an annual dividend of $2.20 (yield of 2.03%). Total shareholder return for the past 12 months was 54.76%.

Read Full Story »»»

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[FUNMAN]

CVS Health to Invest $12.7 Million in Affordable Housing in Nashville

Thursday, February 3, 2022

WOONSOCKET, R.I., Feb. 3, 2022 /PRNewswire/ -- CVS Health today announced it will invest $12.7 million with R4 Capital to build 204 new affordable housing units for individuals and families in the Chestnut Hill neighborhood in Nashville. The investment is part of CVS Health's commitment to address racial inequity and social determinants of health in underserved communities.

https://www.cvshealth.com/news-and-insights/press-releases/cvs-health-to-invest-127-million-in-affordable-housing-in

The 2021 Affordable Housing Task Force Report issued by Mayor John Cooper's office found that an estimated 65,000 households, nearly half of Nashville's renter population, is rent burdened, meaning they spend more than 30% of household income on rent. The housing development, which is named 101 Factory, will support individuals and families earning up to 30% - 70% of Area Median Income and provide them with the resources they need to live healthier and reach their full potential.

"I applaud CVS Health for making such a significant investment in our city's affordable housing portfolio," said Mayor Cooper. "Metro has directed unprecedented levels of funding more than $100M to affordable housing over the past two years, but this work demands private sector partners, too. I hope this investment from CVS Health will spur more companies to join in because we must all work together to address Nashville's affordable housing challenges."

"101 Factory is a welcome addition to the Chestnut Hill neighborhood, and I thank CVS Health and all the partners who came together to make it a reality," said District 17 Councilmember Colby Sledge. "We need creative solutions to create affordable housing, and partnerships like these set a great example for others in the private sector. I will continue to advocate for increased and diverse Metro affordable housing investments, and hope to see more developments like 101 Factory."

CVS Health is working with Elmington Capital Group, LLC to build Factory 101. The new development consisting of three, four-story residential buildings will be located at 101 Factory Street and will provide studio, one-, two- and three-bedroom housing units at a reduced rent to families with demonstrated need. Planned amenities include a community room, a computer lab, fitness facility, on-site property management, a picnic area, a dog park and surface parking.

"CVS Health has been a wonderful partner on this project, and it wouldn't have been possible without them," said Hunter Nelson, Partner at Elmington Capital Group. "Not only were they instrumental in the creation of 101 Factory, but they will also provide invaluable resources for the people and residents who will soon call it home. As Elmington continues to focus on creating more affordable housing across Nashville, we couldn't be more excited about the future of Chestnut Hill."

CVS Health's commitment includes $110,000 to help provide comprehensive health and wellness resources and social services to 101 Factory's future residents based on their specific needs.

"CVS Health is dedicated to providing underserved communities in Nashville with opportunities that can help them live healthier lives," said Jim Bostian, Midsouth Market President, Aetna, a CVS Health company. "Through this affordable housing investment in Chestnut Hill, we're addressing housing insecurities and ensuring local residents have access to resources that can not only improve their overall health and well-being but can help their local community thrive."

In Tennessee, CVS Health has a longstanding commitment to supporting local organizations and initiatives that provide communities with access to health care services, affordable housing, food security, as well as education and economic opportunities. Since 2019, CVS Health has awarded nearly $500K to local organizations, including Cedar-Sinai Medical Center, United Way of Middle Tennessee, Nashville Food Project and the Vanderbilt University Medical Center.

As part of CVS Health's overall commitment to advance health equity in America, it invested $185 million in affordable housing nationwide in 2021 and $1.3 billion over the past 20 years, including $31.4 million dollars in Tennessee. Through these investments, CVS Health has been able to provide underserved communities with quality housing, economic support, and educational training opportunities based on the unique needs of the population.

About CVS Health
CVS Health is the leading health solutions company, delivering care like no one else can. We reach more people and improve the health of communities across America through our local presence, digital channels and approximately 300,000 dedicated colleagues including more than 40,000 physicians, pharmacists, nurses, and nurse practitioners. Wherever and whenever people need us, we help them with their health whether that's managing chronic diseases, staying compliant with their medications, or accessing affordable health and wellness services in the most convenient ways. We help people navigate the health care system and their personal health care by improving access, lowering costs and being a trusted partner for every meaningful moment of health. And we do it all with heart, each and every day. Learn more at www.cvshealth.com.

Media contact
Eva Pereira
781-686-4200
[e-mail]

SOURCE CVS Health

[DiscoverGold]

CVS Health (CVS) Shares Down 3.1% Following Insider Selling
By: MarketBeat | January 31, 2022

• CVS Health Co. (NYSE:CVS)'s share price traded down 3.1% during trading on Monday following insider selling activity. The stock traded as low as $105.71 and last traded at $105.88. 176,276 shares traded hands during mid-day trading, a decline of 98% from the average session volume of 7,618,732 shares. The stock had previously closed at $109.27.Specifically, COO Jonathan C. Roberts sold 108,870 shares of the company's stock in a transaction on Wednesday, November 3rd. The stock was sold at an average price of $95.00, for a total value of $10,342,650.00. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, COO Jonathan C. Roberts sold 68,482 shares of the business's stock in a transaction on Thursday, January 27th. The shares were sold at an average price of $107.50, for a total value of $7,361,815.00. The disclosure for this sale can be found here. 0.69% of the stock is currently owned by company insiders...

Read Full Story »»»

http://openinsider.com/search?q=cvs

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[FUNMAN]

A CVS article to make you smile CVS: Growing With Larger Healthcare Market And Telehealth

Jan. 28, 2022 9:46 AM ET

https://seekingalpha.com/article/4482444-cvs-growing-larger-healthcare-market-telehealth-stock-buy?mailingid=26518489&messageid=2800&serial=26518489.4944&utm_campaign=rta-stock-article&utm_medium=email&utm_source=seeking_alpha&utm_term=26518489.4944

Summary

* CVS is undervalued based on current S&P ratios.

* CVS has plenty of growth ahead.

* CVS has an interesting partnership with Teladoc that gets it access to a nice, growing segment of the healthcare market.

Since I last covered CVS (NYSE:CVS), anyone sharing in my advice would have seen gains of 80% or more. This "value" name has had great growth over the last year or so - and I believe they still have many opportunities ahead. However, it seemed important to choose if it was still worth the buy rating for anyone who is newer to the CVS name.

CVS is no longer the once boring corner drugstore as it has officially moved into the larger healthcare market. It leveraged itself to healthcare - in a move many did not like - when it purchased Aetna years ago for $69 Billion. Loaded with debt, but having plenty of income, the company was ignored by investors until rather recently when the market started noticing that it was executing its strategy… and doing it well.

The debt burden has mostly been managed as CVS has paid down $21 Billion and reached its stated goal, a leverage ratio under 3x, roughly a year early. (The dividend was halted at $0.50 per share per quarter for the entire time to assist in paying down the debt quicker. It has since had an announced 10% dividend increase, likely the first of many such yearly announcements.) Stock pickers moved on and missed the opportunity of a company with powerful earnings, including missing the growing healthcare company it was creating. Value investors who saw earnings knew that if CVS would stick to the plan, things could work out and many holders have made out well with gains of 50-100% over mere years. (Not bad at all for a "value stock.") CVS is still a value-priced company, but does it have enough growth ahead?

The Basic Business Model
CVS has created a growing, near-whole healthcare company. CVS's Caremark division provides roughly one-third of company revenues while working behind the scenes with health insurers as a pharmacy. (Technically a Pharmacy Benefit Manager, or PBM.) They are using the 'boring drugstore' PBM by leveraging what is the nation's largest pharmacy service - more technically the highest prescription drug market - to deliver medicines to anyone and everyone who will use the service.

With the purchase of Aetna, CVS gained access to health benefits and managed care for over 23 million members, which made them the third-largest health insurer in the U.S. This is a competitive market, and Anthem (NYSE:ANTM) and UnitedHealth (NYSE:UNH) have a rather large lead, but continually adding services and more convenient access centers should assist CVS in growing this business.

Then Aetna President, Karen Lynch, became the President and CEO of CVS last year. With her Aetna background, she rightfully seems highly focused on increasing income via healthcare coverage and offerings. The previous President, Mr. Merlo, and the board even adjusted the name from CVS/Caremark to CVS Health, further showing what they are focused on.

This is really the reason for CVS "Minute Clinics" and "HealthHubs". CVS is pushing more and more services into 'the corner drugstore' and revamping layouts to create treatment centers for simpler-yet-common chronic diseases, like sleep apnea or diabetes, as well as pushing into mental and behavioral health. Pairing with Teladoc (TDOC) and using its services for virtual visits, CVS is leveraging their technology to be even more convenient to consumers all over.

The Amazon Threat
Amazon (AMZN) is attacking the healthcare market leveraging its massive online presence and distribution warehouses in strategic areas. Focusing on quick shipping to most locations, Amazon has become a get anything-and-everything online shop with great brand awareness. Amazon sees the growth in the healthcare and prescription markets and has been trying to enter and gain share since its 2018 acquisition of PillPack, but consumers still need a doctor and prescription to use this service.

Amazon, Berkshire Hathaway (NYSE:BRK.A) (NYSE:BRK.B) and JPMorgan all paired together to tackle the healthcare cost issue, creating a service known as Haven, and came up lacking - with all eventually cancelling this venture. Amazon still sees dollar signs and is undeterred from the healthcare market and is now launching - or maybe you could say rebranding as - AmazonCare in order to assist folks in getting a doctor visit and prescription online. I don't deny that any entrance by Amazon is significant; however, they have a tough haul trying to gain employers and consumers one at a time. CVS already has many of these employer and consumer relationships. But Prime members could possibly be swayed by the Amazon effect.

Not to be left out, Walmart (WMT) purchased MeMD and has benefitted from its store pharmacies to bring more things to more customers. The big retail stores are not as numerous as CVS, however, they do have half the reach and are doing everything they can to make their stores a one-stop-shop. The larger store focus does create other challenges, but Walmart has faced challenges before.

CVS's Angle of Attack
CVS is attacking the same overall healthcare market, a massive and growing Total Addressable Market (TAM), but from a different angle as the above companies. It is also using different tactics from the larger medical insurance companies, UnitedHealth and Anthem, as it looks for more market share - and profits. As mentioned in previous articles here and here, CVS is leveraging its 9,900 stores and distribution centers to get closer to people. Stats show that roughly 80% of all U.S. citizens are less than 10 miles from a CVS store. This gives CVS a unique proximity to consumers, a convenience factor if you will, as their ubiquitous "corner stores" reach into nearly every city.

CVS stores, roughly 1,500 by end of 2021, are being set up as HealthHubs. HealthHubs are almost like urgent care clinics inside the existing store location, giving folks access to convenient and lower cost after-hours, or just simpler, health visits. On top of this, stores are being set up to ship products that are ordered online, with many also as convenient UPS drop-off locations making each location a mini distribution center. The digital push makes this smaller store, networked distribution increasingly easier.

True, CVS has announced their intention to close some stores, roughly 900 over the next three years. This still leaves 9,000 stores across the Nation - and the savings not spent on physical location rent as well as some staffing - to improve and add more services as they rework other store offerings. They have stated numerous times that they are optimizing their "retail portfolio to serve as community health destinations." They are doing this by building, or enhancing, more stores into HealthHub locations. As they expand care center services, they are working with technology to continue expanding their reach and expertise by reaching people digitally, and this is where the picture gets even better…

CVS's Digital Strategy
CVS already states they have 35 million digital customers. Most of these are folks who are using the CVS app to order products and prescriptions from CVS. Increasingly I would imagine the app and digital service will become a way to reach doctors for questions and telehealth visits as CVS pushes towards virtual visits. (Aside from offering coupons to keep users more sticky.)

CVS is leveraging their drugstore/PBM's highest prescription drug market (again, a roughly 25% market share) and the national healthcare reach of Aetna to reach more and more consumers with convenient access to health services. On top of this CVS is partnering with Teladoc, providing opportunity and even more reach to consumers who are looking for virtual doctor visits and convenience.

Some Numbers
Previous earnings came out in November of 2021, so we are anxiously looking forward to the next statement on February 9th, 2022. Their prior Q3 announcements showed beat on pretty much all fronts, including an over $3 Billion top-line beat. Non-GAAP EPS of $1.97 beat expectations by $0.18. (GAAP EPS had an EPS of $1.20, a rare miss of $0.20) This all was from a healthy revenue or $73.79 Billion, a roughly 10% Year over Year gain.

FCF for the quarter was $4.9 Billion, up from $1.3 Billion in the same quarter of 2020. Adjusted earnings for the full year, which they will announce soon, were expected to be roughly 6% growth. This increasing income allowed CVS to pay down $6.5 Billion in long-term debt year-to-date and get roughly $21 Billion off the books from the transformational Aetna merger from 2018. Management had previously estimated to hit a target leverage ratio of about 3x at the end of 2022. They hit that number roughly a year early.

Comparisons in and Outside of the Industry
CVS is really a company looking to be unique by offering a host of products that nobody else offers. While they are unlikely to be the only company offering these services, they are moving to transform the industry by leveraging their strengths in a logical manner. They have the opportunity to truly differentiate themselves from others, depending on what they do from here. Either way, they surprised many market enthusiasts and analyst "experts" by doing what they said they would when they purchased Aetna years ago.

Walgreens (WBA) is really the closest similar business, though they do not have the large healthcare offerings. Walgreens seems to be pivoting to a similar mold as CVS and has some good prospects going forward, possibly also being undervalued, but that is a different discussion altogether. In the comparisons below, I included Amazon - which is looking to compete - as well as Walmart and a few others that have similar income or some overlapping business.

https://static.seekingalpha.com/uploads/2022/1/27/877449-16432634714064581_origin.jpg

Ratios and Comparison List, Self-Created using current Seeking Alpha data

This stock list shows that even with the gains over the last year or so, CVS still does not get all the market credit it deserves. Target (NYSE:TGT) has a somewhat similar market-cap but roughly one-third the revenue or CVS. UnitedHealth is in a similar field but is valued over 40% higher even with a lower dividend yield. Numerous other comparisons are rather easy to see.

"Strategic Cash Investments"

Ok, admittedly this section is where I get into the weeds a bit. CVS has straightforward plans and can improve results with simple execution of their strategy, but a few things were mentioned many times that have me wondering. In the last presentation at the J.P. Morgan Healthcare Conference, CVS stated their plan for long-term capital was both very simple to understand and attractive to long-term investors. Goals include making sure they have "differentiated care delivery assets" including virtual assets and a "deep health care experience". They also look to scale assets and to use a connected and digital model including "virtual and in-home care".

https://static.seekingalpha.com/uploads/2022/1/27/877449-1643263546569345_origin.jpg


https://static.seekingalpha.com/uploads/2022/1/27/877449-16432637053556082_origin.jpg

CVS later states that they want to:

* Invest 25% to 35% into the business to grow and capture more opportunities.

* Allow for 45% to 55% for "value-added" or "capability-focused M&A" opportunities.

* Provide an attractive dividend with roughly 20%, growing over time with EPS gains.

What has me so interested is their constant mentions of the words 'virtual' and 'digital-first' in all the most recent materials.

https://static.seekingalpha.com/uploads/2022/1/27/877449-16432637975863855_origin.jpg

J.P. Morgan Health Conference Slide 7 for CVS, Author Highlights point 3 and 4

It seems to simply show that CVS is going to continue to use Teladoc's suite of services to continue to grow and diversify. It might be rampant speculation, though something I would highly consider if I was in their position to continue to leverage the relationship with Teladoc to offer more virtual care. (This would allow CVS to reduce the store count, the 900 expected reduction over the next three years, without really losing the consumers in those regions and still offering patient services.)

If I am allowed to be even more bold, I would assert that CVS could even consider purchasing Teladoc for its assets and growth. (Teladoc purchased/merged with Livongo in October of 2020 in an all-stock deal. Admittedly, the deal was priced at a combined company value of $18.5 Billion. Current valuation shows the Teladoc merger has a lot of naysayers as it has a current market cap of $12 Billion right as it nears profitability. This could be worth it at the right price, likely only costing CVS one year's FCF.)

Another interesting thought is that the global telehealth market is forecasted to grow anywhere from $300 Billion to $700 Billion by 2028. (That is outstanding growth opportunity even on the smaller side!) CVS Health and Aetna, using Teladoc software, could have some early signs of software acceptance. The access to Teladoc software could show CVS some of the income that Teladoc is expecting, but also might make a bit easier as they share access. Admittedly, the roughly 25-30% compound growth TDOC expects would assist CVS in beating the numbers if it were under the CVS Health umbrella. (But I digress...)

Wrapping Things Up
Speculation aside, CVS - the once stodgy corner drugstore - is finally starting to catch the attention of the market. It has transformed itself into a national player on the healthcare stage and is setting itself up for more growth, while still being a great value. Of course, current market dynamics are likely to be very rocky as inflation and Fed bonds, rates, etc. take center stage.

If I had no CVS stock today, I would consider this a moderate Buy. CVS is undervalued when compared to most of the market. (S&P current ratio shows a PE of 24 while CVS gets a PE ratio of only 12.) Since I currently own CVS and have enjoyed the nice gains over the last year or so, I am in no hurry to add shares at this point. However, I will heavily consider it if it falls in a larger market correction and I would recommend others consider the same.

Disclosure: I/we have a beneficial long position in the shares of CVS, TDOC either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

[DiscoverGold]

Q4 2021 EPS Estimates for CVS Health Co. Increased by Oppenheimer
By: MarketBeat | January 24, 2022

• CVS Health Co. (NYSE:CVS) - Analysts at Oppenheimer raised their Q4 2021 earnings estimates for CVS Health in a note issued to investors on Wednesday, January 19th. Oppenheimer analyst M. Wiederhorn now forecasts that the pharmacy operator will earn $1.94 per share for the quarter, up from their prior forecast of $1.60...

Read Full Story »»»

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[DiscoverGold]

CVS Health Co. (CVS) to Post Q4 2021 Earnings of $1.93 Per Share, Truist Financial Forecasts
By: MarketBeat | January 21, 2022

• CVS Health Co. (NYSE:CVS) - Truist Financial boosted their Q4 2021 earnings estimates for shares of CVS Health in a research note issued to investors on Wednesday, January 19th. Truist Financial analyst D. Macdonald now forecasts that the pharmacy operator will post earnings of $1.93 per share for the quarter, up from their prior forecast of $1.59. Truist Financial currently has a "Buy" rating and a $124.00 target price on the stock. Truist Financial also issued estimates for CVS Health's Q1 2022 earnings at $2.08 EPS...

Read Full Story »»»

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[FUNMAN]

This article partly points out why I reason that after a great run this year, that I see the year-end PPS near $110

And then if more debt is paid down during 2022 and there is a December dividend increase announcement for 2023, the PPS should move up again in 2023.

Don't forget that they are closing 90 stores.

I think the Street caught up with my love affair with CVS. 

https://seekingalpha.com/article/4480411-cvs-dividend-stock-watch-after-dividend-increase?messageid=2800&utm_campaign=4480411&utm_medium=email&utm_source=seeking_alpha&utm_term=RTA+Article+Smart ;


Is CVS A Dividend Stock To Watch After The Dividend Increase?
Jan. 19, 2022 4:35 PM ETCVS Health Corporation (CVS)1 Comment3 Likes
Chuck Walston profile picture
Chuck Walston
Marketplace
Summary
After a hiatus designed to reduce debt following the Aetna acquisition, CVS recently raised its dividend payout for the first time since 2017.
The firm’s three segments generate synergies, while the PBM and Aetna provide shallow but enduring moats.
Investors fear competition from Amazon.
Looking for a helping hand in the market? Members of High Dividend Opportunities get exclusive ideas and guidance to navigate any climate. Learn More »
Las Vegas Strip - CVS
LPETTET/iStock Unreleased via Getty Images

In Q3, CVS Health Corporation (NYSE:CVS) posted its second straight quarter of double-digit, year-over-year revenue growth. The latest earnings also marked the 14th consecutive quarter that CVS exceeded analysts' revenue expectations. Then early this week, the company raised its FY21 diluted EPS guidance and also reaffirmed FY22 adjusted EPS guidance of $8.10 to $8.30.

Those results, combined with the first increase in the dividend payout since 2016, helped to push the share price higher. CVS now trades near 52-week highs. The strong quarterly reports also reflect the integration of Aetna following the acquisition of that company in late 2018.

While many characterize CVS as a retailer, in fact, the company only derives about a third of its profits from the retail segment. Furthermore, CVS can rightfully claim that the retail business, the pharmacy benefit management (PBM) segment, and Aetna are all leaders in their respective fields.

Of course, the company still faces fierce competition, and some investors have been spooked by Amazon's entrance into the pharmacy business.

The Transformation Of CVS
In 2007, CVS acquired Caremark RX, a PBM. Then in late 2018, the company completed its acquisition of Aetna. With those deals, CVS was transformed from a retail pharmacy into a health care provider delivering an integrated health care experience. Furthermore, each segment provides operational efficiencies for the others, creating a competitive advantage over most rivals.

However, the Aetna deal cost CVS $69 billion. To buttress the balance sheet, management moved to freeze the dividend and halt stock buybacks. This led to a period of malaise in the share price. The stock dropped immediately after the deal and did not recover to pre-acquisition levels until April of this year.

The debt burden from adding Aetna pushed the company's leverage ratio to 4.7x. In turn, the major rating agencies lowered the company's debt scores. First, S&P reduced the company's debt rating from BBB+ to BBB with a stable outlook. Then Moody's followed suit, lowering its rating to Baa2 from Baa1 with a negative outlook

Since that time, management has worked diligently to pay down debt. Long term debt has been reduced by $21 billion, and the company is well along its way to reaching a goal of a low 3x leverage ratio in 2022.

Despite the added debt and the associated measures taken to restore the firm's balance sheet, the Aetna acquisition has paid off. The charts below provide evidence of the growth in revenue and EPS following the consummation of the deal.

CVS annual revenue
Macrotrends

Source: Metrics from Macrotrends & Q3 Earnings Call / Chart by author

CVS Annual EPS
Macrotrends

Source: Metrics from Macrotrends & Q3 Earnings Call / Chart by author

With 24 million members, Aetna is one of the largest insurers in the U.S. In metropolitan areas in which it is a leading provider, Aetna has a scale advantage over smaller rivals. This allows the company to offer lower costs and/or increased benefits to members. With that advantage, employers and providers are attracted to Aetna's offerings. In turn, this begets a virtuous cycle and an enduring moat.

CVS has an additional asset that strengthens its moat. The PBM operated by the company is one of the top three in the industry, along with UnitedHealth (UNH) and Cigna (CI). Combined they control nearly 80% of U.S. prescription volumes on an adjusted basis.

CVS' PBM processes approximately 2 billion, or roughly one third, of the adjusted prescriptions annually in the U.S. The scale of the PBM provides the negotiating leverage to gain discounts from drug manufacturers and pharmacies. In turn, this helps to strengthen Aetna's position as an insurer.

Prescription drug market
Statista

Source: Statista / Chart by author

The major PBM's also exhibit low churn rates from clients, with annual retention rates well above 90%.

An Ever Present Threat
In November of 2020, Amazon (AMZN) entered the pharmacy business, offering online prescription fulfillment as well as free delivery for Prime members. As one would expect, shares of CVS and Walgreens (WBA) took a dive.

Then in the middle of last year, Business Insider reported Amazon was mulling the idea of adding pharmacies to its Whole Foods stores and opening physical stores in a "handful" of locations.

While more competition is never a positive, I've reported in previous articles that contrary to conventional wisdom, Amazon does not corner the market on drug prices. Articles from Healthline and Pharmacy Checker provide evidence that Amazon's prices are often higher than that of CVS. This should come as no surprise to those that understand the advantage a PBM offers.

It should also be noted that mail-order prescriptions represent less than 20% of all prescription drug sales. Furthermore, CVS CarePass members receive free one- or two-day delivery of prescriptions as well as access to a 24/7 CVS pharmacist hotline. CVS is also using Shipt, a delivery service provider, to provide same-day prescription delivery from 6,000 locations.

I will posit that Amazon and Walmart pose far greater threats to independent pharmacies than to the major players. Rural pharmacies are being hit particularly hard. In the sixteen years leading up to 2018, over 16% of the rural pharmacies closed.

Map of pharmacies US
Kentucky Health News

Pharmacies are struggling. We're getting calls from a lot more pharmacy owners that want to sell their stores. They've had enough.

Harry Lattanzio, President of PRS Pharmacy Services

I believe it is reasonable to assume that CVS may benefit over the long term from the failure of independent pharmacies.

CVS Valuation
CVS currently trades for $106.22 per share. The 12-month average price target of the 22 analysts rating the stock is $112.95. The price target of the three analysts that rated the stock following the last earnings report is $116.66.

The company has a 5-year PEG of 2.14x, well above its average PEG of 1.44x. The forward P/E of 17.59x is nearly 3 points higher than its 5-year average P/E.

Dissecting The Dividend, And More
The current yield is 2.07%, and the payout ratio is 26.72%.

I've noted some commentators predicting that large increases in the dividend are in store. I beg to differ, and my circumspect position is based on management's pronouncements as well as the company's recent presentations.

The CEO had this to say during JP Morgan's Annual Healthcare Conference:

First, we're investing 25% to 35% in our foundational businesses, 20% will be invested in our gradually increasing dividend with growth and dividend aligned to earnings growth.

During the last earnings call, the CFO stated the dividend would grow with EPS.

A recent presentation reinforces management's guidance.

Capital generation
JP Morgan

During the latest earnings call, management provided guidance regarding expectations of growth in the coming years.

During our Investor Day in a few weeks, we look forward to sharing with you more about our path over the coming years to deliver on this ambition and to position CVS Health to generate sustainable, low double-digit adjusted EPS growth.

I think it is likely that CVS will hit the low double-digit revenue growth goal. Assuming an annual 10% dividend payout increase, we would reach a yield on a current cost basis of roughly 3% in four years.

I should add that management approved a $10 billion share repurchase plan. With the current market cap, this would result in about a 7% reduction in the share count.

Is CVS Stock A Buy, Sell, Or Hold?
To characterize CVS as a retail company is to ignore Aetna and the PBM business, which combined generate roughly two thirds of the parent company's profits. Furthermore, the PBM and Aetna provide a narrow but stable moat, and synergies exist between each of the three segments.

Management guides for sustainable EPS growth in the low double digits by 2024, and a major negative undermining investor sentiment has been removed with the resumption of share buybacks and a dividend increase. All in all, I think it reasonable to classify CVS as a very safe investment, albeit with moderate growth prospects.

I will add that companies in the health care sector tend to perform well during periods of economic uncertainty.

Last year I published two articles on CVS, and on each occasion I rated the stock as a buy. Following the article that debuted roughly a year ago, the shares beat the S&P by close to a two to one margin. The total return for CVS after my article in July is well over 4X the S&P.

I found it easy to rate the stock as a buy on those two occasions; however, I will admit that I struggled somewhat to make a decision in this instance for two reasons: a less compelling valuation and a rather modest current yield. Otherwise, I view CVS as a sound investment.

Unless I can provide a buy rating without reservation, I prefer to err on the side of caution.

Consequently, I rate CVS as a HOLD.

This article was written by

Chuck Walston profile picture
Chuck Walston
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My primary focus is dividend bearing stocks; however, I also invest in some high growth names to boost my total return.
I am a value / buy and hold investor. Readers should consider this when weighing my buy/hold/sell recommendations. Since I require a discount in the share valuations of my investments, my ratings are generally very conservative. My valuation requirements, combined with the high quality companies that I often highlight, mean many stocks I rate as a hold perform well over the long term.
I am a retail investor, with no formal training in investing.
I am a graduate of the U.S Army Ranger school and a former member of the 1st Ranger Battalion and The Old Guard (U.S Army Honor Guard.) I am a retired law enforcement officer. I have approximately 18 years experience as a retail investor.

Best of luck in your investments, Chuck
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Disclosure: I/we have a beneficial long position in the shares of CVS, CI, UNH, WBA either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: I have no formal training in investing. All articles are my personal perspective on a given prospective investment and should not be considered as investment advice. Due diligence should be exercised and readers should engage in additional research and analysis before making their own investment decision. All relevant risks are not covered in this article. Although I endeavor to provide accurate data, there is a possibility that I inadvertently relay inaccurate or outdated information. Readers should consider their own unique investment profile and consider seeking advice from an investment professional before making an investment decision.

[FUNMAN]

CVS Health and Uber Health collaborate to advance health equity in communities nationwide

Wednesday, January 19, 2022

Collaboration will provide free transportation through new Health Zones initiative

https://cvshealth.com/news-and-insights/press-releases/cvs-health-and-uber-health-collaborate-to-advance-health-equity

WOONSOCKET, R.I. — CVS Health (NYSE: CVS) today announced a collaboration with Uber Health, Uber's healthcare arm, to provide critical transportation support at no cost to people who need it most when seeking access to medical care, work or educational programs.

The relationship is part of Health Zones, CVS Health's new initiative that provides concentrated local investments designed to reduce health disparities and advance health equity in high-risk communities across the country. Health Zones is an integrated approach to addressing six key social determinants of health: housing, education, access to food, labor, transportation, and health care access. The Health Zones initiative is now active in five markets nationwide: Atlanta, GA; Columbus, OH; Fresno, CA; Hartford, CT; and Phoenix, AZ with plans to expand into more cities later this year. Working with trusted national and local partners, CVS Health is addressing community health care needs, ensuring at-risk communities have access to resources and opportunities that can help them thrive.

CVS Health and Uber Health will help eliminate a critical barrier to care and overall well-being transportation which can limit a person's ability to receive medical care, to get to work or to job trainings and can ultimately lead to adverse health outcomes. Rides with Uber Health will be available to a target population living in three of the five Health Zones: Atlanta, GA; Columbus, OH; and Hartford, CT with plans to enter additional cities later this year.

"Our Health Zones initiative allows us to make a real impact on the health of communities across the country by working closely with organizations that share our commitment to addressing social determinants of health," said Eileen Howard Boone, Senior Vice President of Corporate Social Responsibility & Philanthropy and Chief Sustainability Officer, CVS Health. "With the Uber Health platform, we'll provide critical transportation to people within communities who need it most, giving them access to health care services so they can live healthier lives and to jobs and educational programs that can help them reach their full potential."

"We've long known that access to reliable transportation can help address critical gaps in care that often disproportionately affect vulnerable communities. With the past two years of the pandemic only further highlighting today's health inequities, it's more important than ever for communities to have the tools they need to bridge care gaps and achieve better patient and population health outcomes," said Caitlin Donovan, Global Head of Uber Health. "Uber Health is proud to be a part of CVS Health's new Health Zones initiative and encourages community organizations to address transportation as a key social determinant of health, while improving health outcomes in a scalable way."

For Uber Health, the relationship with CVS Health is a natural extension of its broader commitment to improving population health care management, so more people can achieve and maintain healthy lifestyles. Its HIPAA-supported solution is utilized by more than 2,000 health care organizations across the U.S.

Health Zones is part of CVS Health's overall commitment to advance health equity in America. In 2021, CVS Health invested $185 million in affordable housing nationwide and $1.3 billion over the past 20 years. Through these investments, CVS Health has been able to provide underserved communities with quality housing, economic support, and educational training opportunities based on the unique needs of the population.

CVS Health continues to help ensure equitable access to COVID-19 testing and vaccinations across the country. Approximately 40 percent of vaccines have been provided to underserved communities and more than 50 percent of CVS Health's testing sites have also supported these communities.

Learn more about CVS Health's new Health Zones initiative and the collaboration with Uber Health.

About CVS Health
CVS Health is the leading health solutions company, delivering care like no one else can. We reach more people and improve the health of communities across America through our local presence, digital channels and approximately 300,000 dedicated colleagues including more than 40,000 physicians, pharmacists, nurses, and nurse practitioners. Wherever and whenever people need us, we help them with their health whether that's managing chronic diseases, staying compliant with their medications, or accessing affordable health and wellness services in the most convenient ways. We help people navigate the health care system and their personal health care by improving access, lowering costs and being a trusted partner for every meaningful moment of health. And we do it all with heart, each and every day. Learn more at www.cvshealth.com.

About Uber Health
Since 2018, Uber Health's HIPAA-supported solution has become the logistics platform of choice for healthcare organizations focused on population health management. From non-emergency medical transportation, nutritional meals to prescription delivery, Uber Health can help connect millions to the care they need. Over 2,000 healthcare organizations like ALC Solutions, Cerner, Boston Medical Center, and ModivCare trust Uber Health to provide access to stress-free transportation for those they care for. By tapping into Uber's logistics expertise, Uber Health's API is able to facilitate everything from mobility solutions to critical deliveries, streamlining population health management and supporting better patient outcomes. For more information, visit uberhealth.com.

Media contact
Eva Pereira
781-686-4200
[e-mail]

[DiscoverGold]

CVS Health Co. (CVS) Given Average Recommendation of "Buy" by Brokerages
By: MarketBeat | January 15, 2022

• CVS Health Co. (NYSE:CVS) has been given an average recommendation of "Buy" by the twenty-six analysts that are presently covering the firm, MarketBeat reports. Three analysts have rated the stock with a hold recommendation, nineteen have issued a buy recommendation and one has given a strong buy recommendation to the company. The average 12 month target price among analysts that have issued a report on the stock in the last year is $112.04...

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$CVS Back to back weekly Blue Raindrops at a key long term level
By: TrendSpider | January 13, 2022

• $CVS Back to back weekly Blue Raindrops at a key long term level



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CVS lifts 2021 profit view on higher demand for COVID-19 vaccinations, tests
By: Reuters | January 11, 2022

CVS Health Corp on Tuesday raised its 2021 earnings forecast, citing higher demand for COVID-19 vaccinations and over-the-counter testing as infections in the United States soared due to the fast-spreading Omicron variant.

Shares in the drugstore chain operator were up nearly 2% at $107 in early trading.

The company said it now expects adjusted profit per share for 2021 in the range of $8.33 to $8.38, up from a prior forecast of $8.00.

Higher-than-expected coronavirus vaccinations in November and December, as well as elevated demand for over-the-counter COVID-19 testing in the last month of 2021, helped with a strong retail segment performance, CVS said.

Rival Walgreens Boots Alliance (NASDAQ:WBA) Inc last week raised its full-year adjusted profit growth forecast on the back of similar comments.

CVS also said its health insurance unit performed better than expected despite higher coronavirus cases, particularly in the back half of the fourth quarter, as deferred elective procedures offset higher COVID-19 costs.

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[FUNMAN]

CVS Health to hold fourth quarter and full year 2021 earnings conference call

Thursday, January 6, 2022

WOONSOCKET, R.I. — CVS Health® (NYSE: CVS) will hold a conference call with analysts and investors on Wednesday, February 9, 2022, at 8:00 a.m. ET to discuss fourth quarter and full year 2021 financial results.

An audio webcast of the conference call will be broadcast simultaneously through the Investor Relations portion of the CVS Health website for all interested parties. To access the webcast, visit http://investors.cvshealth.com. The webcast will be archived and available on the website for one year following the conference call.

About CVS Health
CVS Health is the leading health solutions company, delivering care like no one else can. We reach more people and improve the health of communities across America through our local presence, digital channels and approximately 300,000 dedicated colleagues including more than 40,000 physicians, pharmacists, nurses, and nurse practitioners. Wherever and whenever people need us, we help them with their health whether that's managing chronic diseases, staying compliant with their medications, or accessing affordable health and wellness services in the most convenient ways. We help people navigate the health care system and their personal health care by improving access, lowering costs and being a trusted partner for every meaningful moment of health. And we do it all with heart, each and every day. Learn more at www.cvshealth.com.

[DiscoverGold]

$75.06 Billion in Sales Expected for CVS Health Co. (CVS) This Quarter
By: MarketBeat | January 3, 2022

• Brokerages predict that CVS Health Co. (NYSE:CVS) will announce sales of $75.06 billion for the current fiscal quarter, according to Zacks. Six analysts have made estimates for CVS Health's earnings, with estimates ranging from $74.45 billion to $75.64 billion. CVS Health posted sales of $69.55 billion during the same quarter last year, which suggests a positive year-over-year growth rate of 7.9%. The firm is expected to report its next quarterly earnings results on Tuesday, February 15th...

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[jjr04001]

The disconnect between share price and customer satisfaction/health is beyond reasonable. And employee morale? No pharmacist alive wants to work for CVS.

[DiscoverGold]

CVS Given New $122.00 Price Target at Tigress Financial
By: MarketBeat | December 23, 2021

• CVS Health (NYSE:CVS) had its price target hoisted by stock analysts at Tigress Financial from $108.00 to $122.00 in a note issued to investors on Thursday, Benzinga reports. The firm currently has a "buy" rating on the pharmacy operator's stock. Tigress Financial's price target would suggest a potential upside of 20.29% from the stock's previous close...

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Have a Wonderful Holiday Season Everyone!!!



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[FUNMAN]

CVS Health to present at the 40th Annual J.P. Morgan Healthcare Conference

Wednesday, December 22, 2021

https://cvshealth.com/news-and-insights/press-releases/cvs-health-to-present-at-the-40th-annual-jp-morgan-healthcare

WOONSOCKET, R.I. — CVS Health® (NYSE: CVS) today announced that President and CEO Karen S. Lynch and Executive Vice President and Chief Financial Officer Shawn Guertin will present virtually at the 40th Annual J.P. Morgan Healthcare Conference on January 11, 2022, at approximately 8:15 am ET.

About CVS Health
CVS Health is the leading health solutions company, delivering care like no one else can. We reach more people and improve the health of communities across America through our local presence, digital channels and approximately 300,000 dedicated colleagues including more than 40,000 physicians, pharmacists, nurses, and nurse practitioners. Wherever and whenever people need us, we help them with their health whether that's managing chronic diseases, staying compliant with their medications, or accessing affordable health and wellness services in the most convenient ways. We help people navigate the health care system and their personal health care by improving access, lowering costs and being a trusted partner for every meaningful moment of health. And we do it all with heart, each and every day. Learn more at www.cvshealth.com.

Media Contact
T.J. Crawford
212-457-0583
[e-mail]

Investor contact
Susie Lisa, CFA
401-770-4050
[e-mail]

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CVS Health Co. (CVS) Short Interest Update
By: MarketBeat | December 19, 2021

• CVS Health Co. (NYSE:CVS) saw a significant decline in short interest during the month of November. As of November 30th, there was short interest totalling 11,230,000 shares, a decline of 23.8% from the November 15th total of 14,730,000 shares. Based on an average trading volume of 5,360,000 shares, the days-to-cover ratio is currently 2.1 days...

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CVS to Post FY2021 Earnings of $8.02 Per Share, Truist Securiti Forecasts
By: MarketBeat | December 15, 2021

• CVS Health Co. (NYSE:CVS) - Truist Securiti increased their FY2021 EPS estimates for shares of CVS Health in a report released on Tuesday, December 14th. Truist Securiti analyst D. Macdonald now anticipates that the pharmacy operator will post earnings per share of $8.02 for the year, up from their previous forecast of $7.96. Truist Securiti also issued estimates for CVS Health's Q4 2021 earnings at $1.59 EPS, Q1 2022 earnings at $2.03 EPS, Q2 2022 earnings at $2.19 EPS, Q3 2022 earnings at $2.08 EPS and Q4 2022 earnings at $1.90 EPS. CVS Health (NYSE:CVS) last posted its quarterly earnings data on Wednesday, November 3rd. The pharmacy operator reported $1.97 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.79 by $0.18. The business had revenue of $73.79 billion during the quarter, compared to the consensus estimate of $70.52 billion. CVS Health had a return on equity of 14.16% and a net margin of 2.66%. The firm's quarterly revenue was up 10.0% compared to the same quarter last year. During the same quarter in the prior year, the company earned $1.66 earnings per share...

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[FUNMAN]

CVS Health: Upside Remains
Dec. 15, 2021 9:14 AM ETCVS Health Corporation (CVS)WBA, AMZN36

See all of the charts and graphs at this link:

https://seekingalpha.com/article/4475335-cvs-health-upside-remains?utm_campaign=RTA+Articles&utm_medium=email&utm_source=seeking_alpha&utm_term=RTA+Article+Smart

Summary

CVS Health Corporation has quickly evolved into more than just a convenient place to fill your prescriptions.

On Friday 12/10/21, CVS Health announced that they were raising their dividend, and with that, my conviction on CVS' stock grew even higher.
I believe the market is only just now beginning to appreciate the plan that management has laid out for the future.

I rate CVS a buy.


Editor's note: Seeking Alpha is proud to welcome Justin Kelso as a new contributor. It's easy to become a Seeking Alpha contributor and earn money for your best investment ideas. Active contributors also get free access to SA Premium. Click here to find out more »

Introduction

CVS Health Corporation (NYSE:CVS) has quickly evolved into more than just a convenient place to fill your prescriptions and pick up some toilet paper while you're there. Since 2017, when they announced what would become known as the largest healthcare merger in U.S. history with Aetna, CVS Health has transformed itself into a true giant in the healthcare industry. They now find themselves in the rather unique position of capturing profits through an interconnected array of services. The addition of "health hubs" in many of their stores is the final piece which will allow them to unlock their true earning power. I find the future being laid out for CVS to be quite attractive and believe now represents a great time to buy shares for the long term.

Company Overview
CVS derives revenue from three main segments. These include the company's newest addition Aetna, which provides health benefits and managed care to over 23 million members, making them the third-largest health insurer in the United States. Having such a large market share affords CVS the ability to offer lower cost, as well as a wider array of benefits, to current and would-be members. Their size also attracts more service providers, such as physicians and hospitals, willing to offer CVS lower prices in order to have access to their large customer base.

Then there is CVS' Caremark division, a pharmacy benefit manager (PBM) working behind the scenes for health insurers, Medicare, and large employers to negotiate with manufacturers and pharmacies for the best pricing on prescription drugs. Caremark essentially determines how much they are going to pay the pharmacies to fill prescriptions.

Which leads me to CVS' final segment, retail pharmacy. CVS currently owns and operates just shy of 10,000 stores. Building on what is referred to as "Minute Clinics", 1500 stores now have what is known as "Health Hubs". Health Hubs aim to be more staff intensive and focus on treating chronic diseases such as diabetes and sleep apnea, as well as behavioral and mental health conditions. These health hubs tend to lead to more foot traffic, front-of-store sales, and prescriptions dispensed.

I would also mention that Covid-19 has been somewhat of a tailwind for CVS Health through Covid-19 testing, of which CVS is America's largest private provider, as well as through the administration of over 43 million vaccines to date. This has led CVS to capture and retain many new customers, as 12.5% of new customers tested for Covid-19 have chosen to fill a prescription or receive vaccinations through CVS Health. Originally it was thought that the widespread use of vaccines would put a swift end to Covid-19, but new strains continue to evolve, such as that of Delta and Omicron. While I'm sure we would all like to see an end to this deadly disease as soon as possible, it appears that CVS will be administering testing and vaccinations longer than anticipated.

By the Numbers
Q3 2021 saw CVS Health beat top-line results by a healthy $3.27B, with total revenue of $73.8B, representing 10% YOY growth. While Non-GAAP EPS of $1.97, which equates to 18.6% YOY growth, beat analyst expectations by $0.18. Management is aiming for sustainable, low double-digit, bottom-line growth, starting in 2024.

Free cash flow (FCF) came in at $4.9B for the quarter. This compares quite favorably to FCF of $1.3B in Q3 2020. Over the trailing twelve-month period, CVS has had a massive free cash flow of $15.2B. CVS Health expects revenues of $286.5B to $290.3B for FY2021, representing growth of 6.2% to 7.5%. FY2021 adjusted earnings per share of $7.90B to $8.0B, if met, would equate to growth of 5.3% to 6.67%.

Since closing the Aetna merger in 2018, CVS took a major hit to their return on equity and return on invested capital, as their debt load skyrocketed. Yet both metrics have been trending up as they have consistently paid down debt.

CVS ROE and ROIC

Source: Simply Safe Dividends

Shareholder Returns
Now let's talk about the good stuff, shareholder returns. From 2003 to 2016 CVS raised their dividend every year at a rate of around 21.5% annually. Not too shabby. In 2017, when CVS merged with Aetna, they announced that they would be freezing the dividend at $2.00 per share and also stopping any share repurchases until they hit a more comfortable 3x leverage. This seemed to turn many investors off, and CVS' stock price continued to trend lower from around the $70 level, down to around $55, and then languished there for a while.

CVC dividend cash flow

Source: FAST Graphs

Management's original estimation was for them to reach their 3x leverage goal in the year 2022. Yet management did not disappoint, hitting their goal ahead of schedule, and on Friday 12/10/21, CVS Health announced a dividend raise, and with that my conviction on CVS' stock grew even higher. The raise came in at a fair 10%, bringing their quarterly dividend to $.55 cents a share, which equates to a current yield of 2.23%, with the first dividend payment due on February 1, 2022. They also announced a $10 billion buyback plan, which equates to just shy of 8% of their entire market cap. Wowzers! I have no doubt that this has kicked off what is the start of a decade(s) long run of dividend raises which could easily average double digits for the foreseeable future.

At its height in 2017, CVS Health sported an earnings payout ratio of 34%, yet since keeping their dividend frozen over the past few years, we have watched that ratio drift down to the 26% range. Now let's imagine that CVS is only able to grow their earnings per share at a 3% clip over the next 5 years. With an adjusted EPS of $7.95, which is the expected mid-point of FY2021, this would result in an EPS of 9.2x at the end of 5 years. At their current $2.20 dividend, CVS could realistically support raises of 10% a year till 2026 and would still have a healthy payout ratio of only 38%. This is an extremely conservative scenario and if CVS manages to get anywhere close to expectations we should easily see growth much faster than 3%, but this just goes to show the power of having a low payout ratio with a growing company.

CVC earnings payout ratio

Source: Simply Safe Dividends

Valuation
With a closing price on Friday 12/10/2021 of $98.86, CVS has a blended P/E of 12.39x. On a valuation basis, this compares favorably to their ten-year average of 13.77x, and 20-year of 15.66x. Analysts expect EPS growth of 3% in 2022 while ramping up to 8% in 2023. If CVS were to trade up to their 10-year average blended P/E, we could expect to see annualized returns just short of 13%. At their 20-year blended P/E, we are talking about 20% annualized returns! It is likely that CVS could realistically trade within the 13x to 15x range. At the mid-range of management's FY2021 EPS guidance of $7.95, this would give us a price range of $103.35-$119.25, which from current prices gives us an upside of 4.5%-20.6%.

CVC stock valuation

Source: FAST Graphs

Competitive Advantage
CVS Health has taken their business to another level with their blockbuster acquisitions of Caremark and Aetna. No longer are they dependent strictly on the retail side of things, as their revenues are split almost evenly between their retail business, Caremark's PBM division, and Aetna's health insurance. Each segment is surrounded by their own moats, giving them a durable, competitive advantage over their competition. These moats mainly take the form of cost advantages and network effects which essentially go hand in hand. The larger their network becomes, the more negotiating power they have, which in turn allows them to offer lower prices and better benefits. This creates a virtuous cycle that sees CVS continue to expand and grow their business.

While the Amazon effect has many companies backfilling their moats, CVS may prove immune. While CVS offers free prescription delivery, the majority of customers still prefer to pick up prescriptions in-store. Also, the implementation of health hubs will keep customers more reliant on in-store visits to receive care in the form of check-ups, vaccinations, and maintenance of chronic diseases. Most of these services would be very difficult to replicate any way other than in-person visits.

Peer Comparison
Walgreens Boots Alliance (NASDAQ:WBA) is CVS Health's largest competitor in their retail and pharmacy divisions. CVS and Walgreens both operate over 9,000 stores in the U.S. and are numbers 1 and 2 respectively as far as market share goes, based on prescription drug revenue. Both businesses will look to combat e-commerce with the implementation of care clinics in their store which should keep more customers reliant on in-store visits. Where CVS holds the advantage is that each of their three segments only accounts for roughly one-third of revenue, while Walgreens relies heavily on their retail stores, with around three-fourths of their revenue coming from their pharmacy segment. While CVS has seen their earnings per share and free cash flow per share consistently rise higher over the years, Walgreens has found itself on a downward trend in these categories, which has resulted in lower ROE and ROIC than CVS at 9% and 6% respectively.

Walgreens ROE and ROIC

Source: Simply Safe Dividends

This may have played a part in their most recent dividend raise in July of only 2.1% as compared to CVS' 10% raise this month. Overall, the future just looks much brighter for CVS, which is backed up by their outperformance over Walgreens over the past year.

Management
CVS recently saw the passing of the torch with the replacement of long-time CEO Larry Merlo with the former president of Aetna, Karen Lynch. Shareholders are hoping she is able to reverse the stalled growth that we have seen over the past few years, as she is already talking about achieving double-digit EPS growth long-term. Only time will tell if she is capable of delivering, but so far things have gone relatively smooth, and I'd say she will be much better received after the recent dividend hike.

Key Decisions
After the merger with Aetna, CVS' management made the decision to freeze their dividend and buybacks, and instead focus on paying down the large debt taken on in this merger. Not only did this show that management wasn't focusing on short-term share movements, or the typical pay bonus that comes with this, but instead they were determined to act in a manner that was best for the long-term viability of CVS Health by making smart, responsible decisions.

It was also announced recently that CVS has plans to close 900 stores, at a rate of 300 a year for the next 3 years. This works out to right around 9% of their total store count and is aimed at reducing store density. Many of the remaining stores will be updated to reflect their new strategy, which includes offering more health services through the addition of "health hubs". If these hubs are as effective as management seems to believe, and as many stores are beginning to show, then that could be a major boon for the company as a whole. The benefits to these health hubs are glaringly obvious, as they could effectively benefit each segment of CVS Health. Not only will they drive more foot traffic to their stores for doctor visits, which in turn will lead to more prescriptions being filled as well as more front-of-store purchases, but they can also use these formats to offer more benefits aimed at attracting a higher number of Aetna members to frequent CVS stores, while incentivizing non-members to sign up for their health insurance.

Another change you may have noticed in stores is the addition of self-checkout machines. Since CVS recently raised their minimum wage to $15, this would seem to be an obvious next step to keeping only their best workers and using technology to replace the rest. This is just one of the ways recently that CVS has shown their willingness to use technology in order to advance their business. Last year CVS announced they were teaming up with UPS in using drones to deliver prescriptions directly to homes, and more recently they have announced intentions to begin working with Microsoft, using their cloud service Azure in order to enhance capabilities of machine learning and customized health. Over time this should lead to higher margins, and in turn greater profits.

Risks
All equities involve risk, and while I believe the risk associated with an investment in CVS is rather low, I would be remiss if I didn't at least briefly cover the two main ones I see. First, there is the one where CVS ultimately fails at successfully integrating the Aetna merger, and the synergies they expected never fully materialize. This would make paying down the heavy debt taken on in the merger all the more difficult, but the fact that they were able to pay off $18.7 billion in debt since closing on the deal in 2018, makes clear that this has not yet been a problem. Management clearly believes things are going well, as the fact that they were able to reach their leverage goal ahead of schedule while resuming dividend raises and share repurchases, would point to the fact that they are confident in the direction things are heading.

The larger risk would appear to be the risk associated with all healthcare stocks at the moment, and that would be the sweeping change that democrats have been pushing at for quite some time. Universal health coverage could constitute a serious change for a large part of CVS' business, although it is difficult to envision a future where the larger insurers are not given a significant role to play in this scenario. If we have learned anything from politics over the years, it is that passing healthcare reform is extremely difficult with large companies like CVS wielding enormous power and influence.

Conclusion and Final Thoughts
The bull run of the last decade has pushed the overall market into highly overvalued territory. Yet there remain many great businesses trading at fair value or better if you know where to look. My favorite sector at the moment would have to be that of healthcare, as the perceived headwinds have unfairly kept many names in this sector from fully participating in the current bull market.

Ever since the announcement of the Aetna acquisition, I have had my eye on CVS and watched as the price flatlined and then eventually began to trend lower. The game plan that we see management implementing will make CVS a long-term winner. While many may point to the near 40% rise over the last year as a reason to avoid investing in CVS at this time, I believe the market is only just now beginning to appreciate the plan that management has laid out for the future and feel that the health hubs are the final piece needed to unlock the full value of their most recent mergers and acquisitions.

As CVS continues to use their large cash flows to rapidly pay down the debt acquired from their Aetna merger, this in turn will lower their annual interest payments and free up more capital to fuel the double-digit EPS growth management is guiding for. Now that CVS has reached that magical 3x leverage, the currently low earnings payout ratio allows for what should be some truly impressive shareholder returns through dividends and buybacks. This is the moment that many shareholders have been waiting for, which should allow us to see a mean reversion back to a more deserved 13-15 P/E ratio as those seeking income move back into this stock. With the market trading at such a lofty valuation, I would be more than happy to lock in double-digit returns for at least the next few years. I rate CVS a buy below $110 and will continue to add to my own position.

[DiscoverGold]

CVS Health (CVS) Stock Rating Reaffirmed by Robert W. Baird
By: MarketBeat | December 14, 2021

• CVS Health (NYSE:CVS)'s stock had its "hold" rating reiterated by Robert W. Baird in a research note issued on Tuesday, AnalystRatings.com reports...

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[Ubquubqu]

I have a friend that works for CVS. Why does your healthcare plan cost so much for your employees. $600.00 a month 80/20 plan 6700.00 copay that I hear is going up. I know a lot of smaller companies that have way better plans than what you offer your employees. My friend is strapped with medical bills year after year because of your plan. Sorry for the rant guys but if they can increase their dividend they can give there employees a good plan. I work for a much smaller company and they provide my family with a no cost plan. And it’s good.

[DiscoverGold]

CVS Health (CVS) Given New $118.00 Price Target at Truist Securities
By: MarketBeat | December 10, 2021

• CVS Health (NYSE:CVS) had its price objective upped by investment analysts at Truist Securities from $112.00 to $118.00 in a note issued to investors on Friday, Stock Target Advisor reports. The firm presently has a "buy" rating on the pharmacy operator's stock. Truist Securities' target price indicates a potential upside of 19.40% from the company's previous close...

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[brandon17617]

I’m liking my calls here