CVS Business and Investment Case
CVS Health (NYSE:CVS) boasts a history of success and strategic collection of synergistic healthcare businesses operating in an economically resilient industry. The multiple consumer touchpoints offered by the company include retail pharmacy stores, mail-order pharmacy and MinuteClinics, all of which put it in prime position to become a major beneficiary of long-term secular tailwinds created by an aging population expected to require its services with increasing frequency.
At a recent share price of $87, the stock trades at a 20.1 price-earnings (P/E) ratio on a trailing-twelve-month basis. Its forward P/E is 17.6 (GAAP) and 14.9 (non-GAAP) based on full-year guidance with analysts targeting five-year annual earnings growth of 14.6 percent.
