Carnage in another healthcare-related stock probably shouldn't be a shock. The reason for the decline in CVS Health (NYSE:CVS) could provide opportunity, though the Trump victory has already reduced some of the upside potential.
The market is highly focused on removing costs from any healthcare company whether drug or pharmacy related. The huge drop in the stock from the 2015 highs might provide an opportunity as the company ramps up capital returns, a typical sign that value exists.
Surprising Hit
CVS stumped the market by reporting a big EPS beat for Q3 and guiding to a halt in profit growth in 2017. The stock though down from a high above $100 early this year still plunged nearly 12% to $73. The recent Trump rally already has the stock back above $77.
