CVS Health Corporation (CVS)

[mick]

PAY ATTENTION PETER---CVS Health (CVS)---FIBS CHARTING MY FRIEND 38% RETRACEMENT
https://investorplace.com/2019/06/7-stocks-to-buy-as-they-hit-52-week-lows/

3 Reasons Why Patience On CVS Health Stock Could Pay Off For Investors
Source: Mike Mozart via Flickr
CVS Health (NYSE:CVS) is trading within 5% of its 52-week low of $51.72, which is 37% below its 52-week high of $82.15.

CVS held its annual investor day June 4; a day in which CEO Larry Merlo spent most of his time assuring shareholders that its acquisition of Aetna would pay dividends in the long run despite the apparent near-term difficulties. Merlo sees the company generating double-digit sales growth in 2022 once the $70-billion purchase is fully integrated.

CVS is building a vertically integrated health business that provides everything from insurance, prescription drug benefits, healthcare services, and retail drugstores. It expects to find at least $300 million in synergies in 2019 and $800 million in 2020.

“Keep in mind we’re in the early innings of our transformational journey,” Merlo told investors. “This will be a multi-year journey with benefits building over time as we continue to build and refine new programs to better serve the needs of our stakeholders.”

I’m normally not a fan of large acquisitions, but given how incredibly dysfunctional the U.S. healthcare sector is, anything that reduces the cost while maintaining profitability, is bound to do well in the long run.

Take advantage of the uncertainty to get a well-run company at a very reasonable price.