Shares of CVS Health Corporation (CVS - Free Report) rose 3.4% on Jan 18 to close at $65.52 following the company’s announcement of yet another major alliance. This time, the company has teamed up with retail and eCommerce giant Walmart (WMT - Free Report) on a multi-year agreement. Financial terms of the deal were kept under wraps.
Per the terms of the deal, Walmart will continue to participate in the CVS Caremark pharmacy benefit management (PBM) commercial and Managed Medicaid retail pharmacy networks. According to CVS Health, this will provide the company’s clients and their members with enhanced network stability.
Notably, CVS Health already has an agreement with Walmart for the latter's participation in the CVS Caremark Medicare Part D pharmacy network. Additionally, Walmart's Sam's Club division has a contract to participate in the CVS Caremark pharmacy networks.
With this latest participation of Walmart, CVS Caremark’s national pharmacy network will have nearly 68,000 participating pharmacies. This will include independently-owned, community-based pharmacies, other local pharmacies in grocery stores, mass merchants plus regional and national chains.
Inorganic Growth Activity: A Key Focus
With the e-commerce giant Amazon's (AMZN) foray into the pharmacy retail market, the traditional retail pharmacy and drugstore players like CVS Healthare collaborating to defend their position. Recently, this leading PBM company achieved a momentous healthcare consolidation by acquiring United States’ third largest health insurer Aetna for a colossal sum of $70 billion.
Economists have termed this deal to be of immense value deal that could reshape the landscape of American health care. On completion of the transaction, CVS Health expects to earn $750 million from near-term synergies with low- to mid-single digit accretion in the second year from the closure date.
Share Price Performance
Over the past six months, shares of the company have underperformed its industry. The stock has slipped 1.3% versus the 3% rise of the industry.
Zacks Rank and Key Picks
CVS Health Carries a Zacks Rank #3 (Hold). Two better-ranked stocks in the broader medical space are Veeva Systems (VEEV - Free Report) and Omnicell, Inc. (OMCL - Free Report) .
Veeva Systems’ long-term earnings growth rate is estimated at 19.5%. The stock flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Omnicell’s long-term earnings growth rate is projected at 11.8%. The stock carries a Zacks Rank #2 (Buy).
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It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
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Shares of CVS Health Corporation (CVS - Free Report) rose 3.4% on Jan 18 to close at $65.52 following the company’s announcement of yet another major alliance. This time, the company has teamed up with retail and eCommerce giant Walmart (WMT - Free Report) on a multi-year agreement. Financial terms of the deal were kept under wraps.
Per the terms of the deal, Walmart will continue to participate in the CVS Caremark pharmacy benefit management (PBM) commercial and Managed Medicaid retail pharmacy networks. According to CVS Health, this will provide the company’s clients and their members with enhanced network stability.
Notably, CVS Health already has an agreement with Walmart for the latter's participation in the CVS Caremark Medicare Part D pharmacy network. Additionally, Walmart's Sam's Club division has a contract to participate in the CVS Caremark pharmacy networks.
With this latest participation of Walmart, CVS Caremark’s national pharmacy network will have nearly 68,000 participating pharmacies. This will include independently-owned, community-based pharmacies, other local pharmacies in grocery stores, mass merchants plus regional and national chains.
Inorganic Growth Activity: A Key Focus
With the e-commerce giant Amazon's (AMZN) foray into the pharmacy retail market, the traditional retail pharmacy and drugstore players like CVS Healthare collaborating to defend their position. Recently, this leading PBM company achieved a momentous healthcare consolidation by acquiring United States’ third largest health insurer Aetna for a colossal sum of $70 billion.
Economists have termed this deal to be of immense value deal that could reshape the landscape of American health care. On completion of the transaction, CVS Health expects to earn $750 million from near-term synergies with low- to mid-single digit accretion in the second year from the closure date.
Share Price Performance
Over the past six months, shares of the company have underperformed its industry. The stock has slipped 1.3% versus the 3% rise of the industry.
Zacks Rank and Key Picks
CVS Health Carries a Zacks Rank #3 (Hold). Two better-ranked stocks in the broader medical space are Veeva Systems (VEEV - Free Report) and Omnicell, Inc. (OMCL - Free Report) .
Veeva Systems’ long-term earnings growth rate is estimated at 19.5%. The stock flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Omnicell’s long-term earnings growth rate is projected at 11.8%. The stock carries a Zacks Rank #2 (Buy).
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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