3 Bargain Stocks – CVS Health

3- CVS Health

CVS's stock is trading with a forward Price/Earnings ratio of less than 10, it could be an underestimated opportunity buy. In 2020, CVS reported a 7.7 percent higher earnings per share (EPS) rate than the previous year. (5.47 USD)

Earnings per share is predicted to increase by 13.7 percent to 6.22 USD for 2021.

The company relies on its strength in the healthcare, retail and long-term care segments, with sales of $ 268.7 million last year, up 4.6 percent from the same period last year. Revenues from the pharmacy business fell 1.9 percent in 2020. But the company may be looking forward to a good year, as people can now get COVID-19 vaccines from CVS pharmacies in 29 states. This not only leads to more customer traffic for their stores, but also helps to strengthen CVS's position as a trusted and local pharmacy. This is exactly the type of relationship CVS needs with its customers to continue to grow and compete with an online giant like Amazon, which officially launched its pharmacy business in November 2020. CVS has physical store services that Amazon cannot compete with, and this value can also provide additional motivation to customers to shop there. The company plans to transform 1,500 more locations into health centers to help patients with chronic conditions, so it has already started expanding its merchandising capabilities. CVS MinuteClinic (MinuteClinic is a CVS Health department that offers retail clinical services.) is equipped to treat many common diseases. In addition, the company will closely monitor how Amazon has launched its Amazon Care project for its employees across the country. In the past 12 months, CVS's shares rose 32 percent, while the S&P 500 rose 70 percent. However, CVS pays a 2.7 percent dividend, well above the average dividend payment of 1.5 percent on the S&P 500 index. CVS is a bargain stock that value-oriented investors can add to their portfolios.   3 Bargain Stocks – CVS Health Source: https://www.fool.com/ You may also be interested in:

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