This company went public on Dec 31st, 1996.
And folks who got in early have seen their initial investment soar by 1,118%.
What started as a $7 firm 27 years ago has become a healthcare juggernaut.
And although some industry observers (including the Motley Fool) don’t see a solid reason to believe this company will outperform the markets this year…
The current price action suggests the stock is teeing up for 15% to 20% short-term gains. And you need not take unnecessary risks to profit.
The company I’m talking about is CVS Health Corporation (CVS).
CVS’s multifaceted approach to healthcare delivery and its footprint across various sectors have made it a focal point for industry stakeholders.
As with most companies in my portfolio, CVS has a diversified revenue stream.
Stemming from pharmacy services, health insurance, healthcare services, etc.
The company has expanded through multiple acquisitions, the most notable being the $69 billion acquisition of health insurance firm Aetna in 2018.
The $69 billion deal helped CVS to integrate health insurance services into its pharmacy and retail offerings. This generated cost-saving opportunities that expanded revenue streams and provided resilience against market fluctuations.
Here are a few other things this company has going for it…
- It has expanded its healthcare services recently, offering walk-in clinics, telehealth solutions, and chronic disease management programs.
- Convenient healthcare options to address the evolving needs of consumers seeking more personalized and timely experiences.
- CVS Health Corporation’s efforts to decrease carbon emissions, enhance energy efficiency, and promote responsible sourcing align with the company’s commitment to sustainability and environmental stewardship.
As I told you earlier, few industry participants and analysts see a compelling reason to believe the stock will outperform the markets this year.
However, as the healthcare landscape evolves in the years ahead…
CVS’s comprehensive approach — innovation and integrating healthcare services with retail operations — positions the company favorably for future growth.
For more insight, see our approach for short-term gains from CVS.
Wishing you many blessings,