We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
CVS Health (CVS) Gains From Digitalization, Hurt by Seasonality
Read MoreHide Full Article
Increasing demand for both Pharmacy Benefit Management (PBM) and specialty pharmacy along with strong digitalization of business is a key driver of CVS Health’s (CVS - Free Report) persistent growth amid the pandemic. The company currently carries a Zacks Rank #3 (Hold).
Over the past three months, shares of CVS Health have outperformed its industry. The stock has gained 26.4% compared with 21.2% rise of the industry.
CVS Health's first-quarter earnings and revenues surpassed the respective Zacks Consensus Estimate. Revenues across all the three operating segments improved in the quarter and came in better than the company’s expectations. Increased full-year guidance indicates that this bullish trend may continue through the rest of 2021.
In the first quarter, CVS Health delivered market-leading results in controlling drug costs for Commercial clients (with only a 2.9% overall drug trend and with 34% of clients experiencing negative trend in 2020). Specialty pharmacy revenues were up 7.2% year over year, reflecting net new wins on success in trend management program. The company is currently well positioned for continued growth in 2022.
The company noted that consumer-centric digital strategy has become more relevant in the current environment as people are using technology more while staying indoors. In the first quarter, the company achieved higher levels of engagement across digital assets, a trend which began in January 2020 and accelerated with COVID-19.
According to the company’s first-quarter update, its second dose compliance of over 90% is the result of this consumer-centric digital approach. The company has scheduled round-trip visits, booking both appointments at once and also providing appointments for second doses only.
During the first quarter, utilization approached near-normal baseline levels. The company continued with growing momentum in Government Services business. It has also increased membership across all Medicare business lines in the first quarter.
On the flip side,in the first quarter, a weak cough, cold and flu season impacted growth within both Pharmacy Services and Retail/LTC. Also, the repeal of the Health Insurer Fee for 2021 hampered growth for Health Care Benefits.
Within Retail/Long Term Care (LTC), the company faced continued reimbursement pressure and the impact of recent generic introductions.
National Vision has a projected long-term earnings growth rate of 23%.
Boston Scientific has a projected long-term earnings growth rate of 9%.
Envista Holdings has an estimated long-term earnings growth rate of 26%.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Image: Shutterstock
CVS Health (CVS) Gains From Digitalization, Hurt by Seasonality
Increasing demand for both Pharmacy Benefit Management (PBM) and specialty pharmacy along with strong digitalization of business is a key driver of CVS Health’s (CVS - Free Report) persistent growth amid the pandemic. The company currently carries a Zacks Rank #3 (Hold).
Over the past three months, shares of CVS Health have outperformed its industry. The stock has gained 26.4% compared with 21.2% rise of the industry.
CVS Health's first-quarter earnings and revenues surpassed the respective Zacks Consensus Estimate. Revenues across all the three operating segments improved in the quarter and came in better than the company’s expectations. Increased full-year guidance indicates that this bullish trend may continue through the rest of 2021.
In the first quarter, CVS Health delivered market-leading results in controlling drug costs for Commercial clients (with only a 2.9% overall drug trend and with 34% of clients experiencing negative trend in 2020). Specialty pharmacy revenues were up 7.2% year over year, reflecting net new wins on success in trend management program. The company is currently well positioned for continued growth in 2022.
The company noted that consumer-centric digital strategy has become more relevant in the current environment as people are using technology more while staying indoors. In the first quarter, the company achieved higher levels of engagement across digital assets, a trend which began in January 2020 and accelerated with COVID-19.
CVS Health Corporation Price
CVS Health Corporation price | CVS Health Corporation Quote
According to the company’s first-quarter update, its second dose compliance of over 90% is the result of this consumer-centric digital approach. The company has scheduled round-trip visits, booking both appointments at once and also providing appointments for second doses only.
During the first quarter, utilization approached near-normal baseline levels. The company continued with growing momentum in Government Services business. It has also increased membership across all Medicare business lines in the first quarter.
On the flip side,in the first quarter, a weak cough, cold and flu season impacted growth within both Pharmacy Services and Retail/LTC. Also, the repeal of the Health Insurer Fee for 2021 hampered growth for Health Care Benefits.
Within Retail/Long Term Care (LTC), the company faced continued reimbursement pressure and the impact of recent generic introductions.
Key Picks
Some better-ranked stocks from the broader medical space are National Vision Holdings, Inc. (EYE - Free Report) , Boston Scientific Corporation (BSX - Free Report) and Envista Holdings Corporation (NVST - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of Zacks #1 Rank (Strong Buy) stocks here.
National Vision has a projected long-term earnings growth rate of 23%.
Boston Scientific has a projected long-term earnings growth rate of 9%.
Envista Holdings has an estimated long-term earnings growth rate of 26%.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How to Profit from Trillions on Spending for Infrastructure >>