What's the Outlook for CVS Health Stock?

CVS Health (NYSE: CVS) is one of the nation's largest pharmacy chains, and its stock is trading at a rock-bottom valuation. In fact, you could now buy the company's stock at a meager 11 times price to earnings, which is a steep discount over the market's 37 times net-income valuation. What gives?

As it turns out, the pharmacy giant is cheap for a good reason. Its entire business is ripe for disruption by healthcare start-ups or new ventures by e-commerce giants. Even its dividend yield of 3% isn't convincing enough to overshadow the long-term risks inherent with an investment. Let's find out why CVS stock's outlook is no longer as bright as it once was.

Image source: Getty Images.

Source Fool.com