CVS Health Corporation (CVS)

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Stocks To Watch This Week: CVS Health (NYSE:CVS)
By: Investing.com | September 4, 2022

• Ryan Cohen is trying to revive growth at GameStop, which has seen sales slowed as gamers have shifted to digital downloads
• Kroger is experiencing shoppers “aggressively” turning to cheaper store brands as they cope with the highest inflation in four decades
• Media reports say CVS is ahead of other potential bidders to buy Signify Health

Investors will likely see another volatile week in equities when they return from the long Labor Day weekend, as hopes of a policy pivot from the Federal Reserve faded after another strong jobs report on Friday.

The recent labor-market data added to the evidence that the economy is robust enough to withstand more tightening, causing equities to come under fresh selling pressure after the strong summer rally.

Fed chairman Jerome Powell warned in a recent speech that people should expect some economic pain as it tries to bring inflation down toward its 2% target, which remains the central bank’s “overarching focus right now.”

Stocks were lower in the past week with the S&P 500 suffering its longest weekly losing streak since mid-June.

With these macroeconomic pressures, here are three stocks on our radar during the holiday-shortened trading week:

CVS Health

Shares of pharmacy giant CVS Health (NYSE:CVS) may see some action this week on reports that the chain is in advanced talks to acquire the home-healthcare company Signify Health (NYSE:SGFY) for around $8 billion.

The Wall Street Journal reported on Friday that CVS is ahead of other potential bidders, including Amazon.com (NASDAQ:AMZN) and UnitedHealth (NYSE:UNH), which had been circling Signify for a deal that could be announced soon.


CVS Fair Value per InvestingPro+
Source: InvestingPro+

Signify works with a large group of doctors to facilitate house calls, using analytics and technology to help physician groups, health plans, employers, and health systems with in-home care. It also offers health evaluations for Medicare Advantage and other plans, according to WSJ.

CVS shares, which closed on Friday at $99.44, have held up well in the current market downturn, falling over 3% this year.

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