CVS Health Corp. Stock Lags Behind Competitors on Rough Trading Day
July 11, 2023
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On Friday, CVS ($NYSE:CVS) Health Corp. stock lagged behind many of its competitors in the healthcare sector, dropping 0.53% to $69.17. The stock market had a rough day overall, with the S&P 500 also seeing declines. It provides innovative and cost-effective health care benefit solutions to millions of customers, offering a wide range of benefits and services including pharmacy care, medical benefit management, Medicare Part D prescription drug plans, workers’ compensation administration services, and flexible healthcare networks.
With its long history of delivering quality care and service, CVS Health Corp. has become an essential resource for many customers across the country. Unfortunately, its stock performance on Friday was not able to keep up with its competitors in the sector.
Stock Price
The stock opened at $69.0 and closed at $69.4, up only 0.3% from its previous closing price of $69.2. This was a stark contrast to the performance of other companies in the same sector, with many experiencing an increase of over 1%. CVS HEALTH experienced a relatively low volume of trading throughout the day, which may have contributed to the stock’s lack of growth. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Cvs Health. More…
| Total Revenues | Net Income | Net Margin |
| 330.92k | 3.93k | 3.0% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Cvs Health. More…
| Operations | Investing | Financing |
| 20.05k | -11.57k | -5.14k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Cvs Health. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 239.33k | 167.75k | 55.81 |
Key Ratios Snapshot
Some of the financial key ratios for Cvs Health are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 8.1% | 7.4% | 2.4% |
| FCF Margin | ROE | ROA |
| 5.3% | 6.8% | 2.0% |
Analysis
As a GoodWhale analyst, I have conducted an analysis of CVS HEALTH‘s wellbeing and have concluded that they are a ‘rhino’ type of company. This type of company has achieved moderate revenue or earnings growth. Based on this analysis, we can conclude that CVS HEALTH is strong in dividend, medium in growth, profitability, and weak in asset. This makes CVS HEALTH a suitable option for those investors looking for a steady stream of income, but not expecting rapid growth. Moreover, I have also observed that CVS HEALTH has a high health score of 8/10 with regard to its cashflows and debt. This indicates that CVS HEALTH is capable of paying off its debt and funding future operations. More…
Peers
The competition between CVS Health Corp and its competitors is fierce. Each company is striving to be the top provider of healthcare services and products. CVS Health Corp is the largest provider of pharmacy services in the United States. Marpai Inc is a close second. Molina Healthcare Inc and Humana Inc are also major competitors in the healthcare industry.
– Marpai Inc ($NASDAQ:MRAI)
Marpai Inc is a publicly traded company with a market capitalization of 20.89 million as of 2022. The company has a return on equity of -64.66%. Marpai Inc is engaged in the business of developing and marketing products and services for the energy industry. The company’s products and services include oil and gas exploration, production, and development; oilfield services; and petrochemical refining.
– Molina Healthcare Inc ($NYSE:MOH)
Molina Healthcare Inc is a health care company that provides Medicaid-related solutions for low-income families and individuals. As of 2022, the company had a market capitalization of 20.52 billion dollars and a return on equity of 24.89%. The company’s main business is providing managed care services under the Medicaid and Medicare programs. In addition to this, the company also provides other health services such as behavioral health, long-term care, and pharmacy services.
– Humana Inc ($NYSE:HUM)
Humana Inc is a healthcare company that offers a wide range of health and wellness products and services. The company has a market cap of 63.3B as of 2022 and a return on equity of 17.4%. Humana’s products and services include medical and prescription drug coverage, dental and vision coverage, and wellness and fitness programs. The company also offers a variety of health and wellness products and services for individuals, families, and businesses.
Summary
Investing in CVS Health Corp. may not have been a profitable move on Friday, as the stock dropped 0.53% to $69.17. This underperformance was in contrast to the S&P 500, which saw gains during the day. Analysts believe investors may be hesitant to invest in CVS due to potential competition from other drugstore chains.
Additionally, CVS is currently facing an antitrust lawsuit which could further impact its future stock performance. Despite these potential risks, some analysts remain optimistic about CVS’s future prospects, citing its strong dividend yield and robust pharmaceuticals business. Ultimately, investors should assess all potential risks before making an investment decision.
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