Why Goldman Sachs Has Positive Views on CVS Health


Apr. 16 2018, Updated 6:32 a.m. ET

Goldman Sachs on CVS Health

Goldman Sachs (GS) also included CVS Health (CVS) in its domestic stock pick list. According to the investment company, CVS Health has 100% US sales.

CVS Health is a leading player in the drug retail industry. It provides various healthcare services, such as US pharmacy and Medicare services. It also provides various services in Brazil. As global trade war concerns grow due to the imposition of tariffs by the United States and China, companies with higher domestic sales are expected to be less affected.

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CVS Health’s performance

On April 12, 2018, CVS Health was trading at $64. It fell 8.1% in March 2018, while the broader-market S&P 500 (SPY) fell 2.7%. CVS Health’s trailing PE (price-to-earnings) multiple was 10.6x that day, whereas the S&P 500’s was 23.2x. The drug retail industry’s PE multiple was 16.9x. For more market views, read Jack Bogle Explains How Long-Term Investors Can Lose.


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