CVS Health Still Has Room to Run
CVS Health (NYSE: CVS) is one of the largest healthcare companies in the world. CVS operates multiple diverse segments, including pharmacy benefits management, retail through a brick-and-mortar network of nearly 10,000 locations, and healthcare benefits, which is primarily attributable to its 2018 acquisition of Aetna.
The health stock slid in the first quarter of 2019, falling from $70 to $52 following its annual earnings report. Management provided full-year profit guidance that was well short of analysts' expectations, owing to investment in the newly acquired Aetna business. The reduced earnings outlook has obvious ramifications for intrinsic valuation based on cash flows, but, more importantly, it also caused investors to question the company's strategic soundness.
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Source Fool.com
