CVS Health's Comeback Is Just Getting Started -- and Its Valuation Still Looks Shockingly Cheap
It's not too late to jump on the bandwagon.
CVS Health's Comeback Is Just Getting Started -- and Its Valuation Still Looks Shockingly Cheap
Overview
CVS Health (NYSE: CVS) encountered significant problems after the pandemic. Revenue growth slowed while expenses rose -- squeezing profits and margins -- due to several challenges. However, the pharmacy chain giant has been bouncing back. The stock has climbed by 48% over the past 12 months. The good news is that CVS Health's comeback may be just getting started, and there is plenty of upside ahead for investors willing to be patient.
Image source: The Motley Fool.
CVS Health faced several problems after the pandemic. For instance, sales of pandemic-related products, such as diagnostic tests, slowed significantly. More importantly, though, CVS Health dealt with rising utilization and costs in its health insurance division, particularly in its Medicare Advantage (MA) business. The company revised its guidance downward several times due to this issue, signaling an uncertain environment. However, over the past year, CVS Health has improved its financial results.
Details
Source
Originally published at www.fool.com.
