CVS Health

  • CVS Health has been transforming its   business model from that of a once-dull drugstore operation into a vertically   integrated healthcare business.

  • CVS Health saw revenue increase 10% to $76.6 bn in Q4 2021, with full year revenue up by 9% to   $292.1 bn. Earnings per share grew 15% to $1.98, beating estimates by $0.10.

  • The investment in Aetna health   enabled it to leverage off its pharmacy services, now one of the U.S.’s   largest pharmacies, providing managed care for over 23 million members.

  • The growth in the clinics, with   services provided from pharmacy, have become health care destinations, and   uses Teladoc’s remote (and affordable) technologies for virtual visits.

  • CVS Health has an extensive   branch network with 40% of the US population living within five miles of a   CVS pharmacy (which offers a range of group services). The company has   conducted over 32 million Covid-19 tests and have administered 59 million   Covid vaccines.

  • The company’s conservative   guidance appears to be based on a substantial revenue contribution from Covid   vaccinations in the past quarter, however future growth of the healthcare   model should offset a decline in Covid sales.

  • Bank   of America has chosen CVS Health as one of its top stock picks for 2022 and   is projecting 23% upside to the current share price. I believe the company   will continue to grow earnings thanks to its diversified higher margins   offering in the healthcare sector.

CVS Health