CVS Health Corp
CVS Will Close 900 Stores Starting in 2022—Closures Will Span 3 Years
S&P 500’s Top Losses: Why Biogen Declined
Biogen, which is an American multinational biotechnology company, was the S&P 500’s top loss on June 18.
Could the Rite Aid–Walgreens Merger Get Competitive?
In the Rite Aid–Walgreens merger, Walgreens is paying about 0.6x trailing-12-month revenues and 13.6x trailing-12-month EBITDA.
What Does Johnson & Johnson Predict for Its Medical Devices Segment?
Johnson & Johnson’s (JNJ) medical devices segment deals with vision care, cardiovascular care, specialty surgery, orthopedics, surgical care, and diabetes care.
Walgreens’s Deal with Rite Aid Still on, but Delayed
In October 2015, Walgreens Boots Alliance (WBA) announced its intention to acquire Rite Aid (RAD) for a total enterprise value of $17.2 billion.
Rite Aid’s Revenue Rose and Income Fell in Fiscal 3Q16
Rite Aid (RAD) has a market cap of $8.2 billion. After the fiscal 3Q16 earnings report, Rite Aid fell by 0.25% to close at $7.88 per share as of December 17, 2015.
Can the Walgreens-Rite Aid Merger Get Antitrust Approval?
The Walgreens-Rite Aid merger is a combination of the first and third largest pharmacies in the United States.
Here’s Why Walgreens Stock Crashed despite Strong Q3 Results
After Walgreens announced its fiscal Q3 results, Amazon announced its plan to acquire PillPack, an online pharmacy company, and WBA stock crashed.
CVS versus Walgreens: Which Has a More Diversified Business Model?
CVS generates close to 70% of its annual sales by offering a full range of pharmacy benefit management services.
How Is UNH’s Optum Business Positioned in the Industry?
UnitedHealth Group is, by revenue, the largest healthcare company in the world.
Costco’s Industry Positioning: A Porter’s 5 Force Analysis
Costco’s suppliers include companies like PepsiCo (PEP), Procter & Gamble (PG), and the Kraft Heinz Company (KHC). No single supplier accounts for over 5% of revenue.
Analyst Ratings for UnitedHealth before Q3 2018 Earnings
Of the 24 analysts covering UNH stock, ten have recommended a “strong buy,” and 13 have recommended a “buy.”
Why Envision Healthcare Stock Rose ~2.4% Last Week
Healthcare service provider Envision Healthcare (EVHC) announced its agreement to be acquired by KKR (KKR) last week.
What to Expect from Walgreens’ Q2 Earnings
Analysts expect Walgreen’s second-quarter sales to rise 2.1% YoY to $35.3 billion. The company is scheduled to release its earnings results on April 2.
Will Walgreens’ Q3 Results Beat Wall Street’s Forecast?
Unlike several other US companies, Walgreens didn’t suspend its dividends due to COVID-19. As of July 6, the company’s dividend yield was 4.2%.
Walmart to Boost Pharmacy Business with CareZone’s Tech Acquisition
Today, CNBC reported that Walmart (NYSE:WMT) has acquired prescription management technology from CareZone to boost its pharmacy space.
Why Walgreens Stock Fell despite Upbeat Q2 Earnings
Walgreens Boots Alliance (NASDAQ:WBA) reported strong earnings for the second quarter of fiscal 2020. The second quarter ended on February 29.
Bears Return to Walgreens Stock, Challenges Persist
Walgreens Boots Alliance stock is feeling pressure again. The stock fell about 6% on Wednesday, which reflects its weaker start to fiscal 2020.
Walgreens Posts Disappointing Q1 Earnings Results
Today, Walgreens Boots Alliance reported lower-than-expected results for the first quarter of fiscal 2020. The adjusted EPS fell on a YoY basis.
Can the US Cannabis Market Rescue ACB?
Aurora Cannabis (ACB) stock isn’t in the best shape today. As reported by BNN Bloomberg, the company’s CEO, Terry Booth, is justifiably worried.
CVS Health Stock: What’s Fueling Growth and Will the Uptrend Last?
CVS Health stock is up about 13% in November. Strong financial performance is driving the stock higher, but low earnings growth could limit further upside.
Analyzing Target’s Same-Store Sales Growth in Fiscal 2016
Target had upbeat revenue performance in fiscal 4Q16 and 2016. Store traffic was up by 1.3% YoY in fiscal 2016, trending in positive territory in all four quarters of the year.
Analyzing the Investment Fundamentals of Discount Retailer Target
Minnesota-based Target (TGT) is the world’s 11th-largest retailer in terms of sales, according to the National Retail Federation.
Why Target Is Focusing on Its Signature Categories to Drive Sales
Target has identified four signature categories it’s concentrating on to provide higher store and web traffic and sales: Baby, Style, Wellness, and Kids.
Merchandise Mix: Which Categories Are Performing Best at Target?
In fiscal 2016, Target’s (TGT) performance was upbeat for all merchandise categories with the exception of hardlines.
Wellington Management: Analyzing Its Top Holdings
Wellington Management filed its 13F on Wednesday. Based on the filing, the market value of total publicly traded securities was around $443.45 billion.
Walgreens: Reports of KKR Buyout Offer, Stock Rose
Walgreens Boots Alliance (WBA) stock rose 5.1% on Monday. Bloomberg reported that private equity firm KKR has formally offered to buy the company.
CVS Keeps Beating Estimates, Raises Earnings Outlook
CVS Health (CVS) again beat analysts’ revenue and EPS estimates when it released its Q3 earnings today. Its stock was up about 3% in premarket trading.
Why Walgreens Is Mulling Over Going Private
Reuters reports that Walgreens Boots Alliance (WBA) is exploring options to go private and has engaged Evercore Partners to put together a deal.
Why CVS Stock Looks Strong Ahead of Q3 Earnings
CVS Health (CVS) is slated to announce its third-quarter earnings results tomorrow. We believe the company sustained its sales momentum in the quarter.
Let’s Explore How Cost Leadership Provides Market Control
The attribute of “cost advantage” is the second most frequent source of economic moat ratings according to Morningstar. Companies that are able to produce and offer products or services at lower costs than competitors are often able to achieve much higher profit margins. Within many industries, cost leaders have a distinct competitive advantage and often […]
Walgreens Stock: Q4 Beat Might Not Spur Recovery
Walgreens Boots Alliance (WBA) struggled in fiscal 2019. Sales headwinds and pressure on margins from reimbursements dragged the stock down.
Walgreens Stock: What to Expect from Its Q4 Earnings
Walgreens is scheduled to report its fourth-quarter earnings before the markets open on October 28. We expected a limited downside in Walgreens stock.
Walgreens Stock Fizzles after Brief Recovery
Pressure on Walgreens (WBA) stock had started easing a bit. However, the revival was short lived, and WBA fell about 2% last week.
Walgreens Stock: Deutsche Bank Recommends a ‘Sell’
Deutsche Bank started coverage on Walgreens stock with a “sell” recommendation. The stock closed 4.3% lower on Thursday after the news.
Why Walgreens Stock Underperformed CVS in August
Walgreens Boots Alliance (WBA) stock underperformed CVS Health (CVS) stock last month, with Walgreens falling 6% and CVS rising about 9%.
Why Has Curaleaf Lost 13.5% in August?
As of August 17, Curaleaf Holdings (CURA) (CURLF) was trading at 9.00 Canadian dollars—a fall of 13.5% in August.
Charlotte’s Web Holdings Stock Down after Earnings
Charlotte’s Web Holdings stock (CWBHF)(CWEB) was down 6.6% yesterday after the company reported lower-than-expected Q2 earning results.
Walgreens or CVS Stock: Which Is a Better Value Buy?
Walgreens and CVS Health shares are trading at a low valuation multiple. The stocks have fallen 22.3% and 8.7%, respectively, in 2019.
Walgreens Will Close 200 US Stores
In a regulatory filing on Tuesday, Walgreens Boots Alliance (WBA) announced that it will close 200 stores in the US to focus on store optimization.
Align Technology Stock Recovers after Tanking Last Week
Align Technology stock (ALGN) took a massive hit after Q2 earnings. So what was behind the massive decline, and what’s helping the stock recover?
Will Pressure on Earnings Limit the Upside in CVS Health Stock?
CVS Health (CVS) impressed investors with its first-quarter sales and earnings.
What to Expect from CVS Health’s First-Quarter Results
CVS Health (CVS) plans to announce its first-quarter results on Wednesday, May 1.
Pharmaceutical Retailers Underperformed Broader Markets
CVS and Walgreens stock fell 17.7% and 7.4%, respectively, in the first quarter, which reflected the weak earnings outlook.
Consumer Staples Stocks: Stragglers in Q1
Despite 10.5% growth in the first quarter, the Consumer Staples Select Sector SPDR ETF (XLP) lagged the benchmark index, which rose 13.1%.
Amazon Challenges Walgreens and CVS Health Again
Amazon (AMZN) recently began letting customers use funds in their special healthcare savings account to pay for purchases of eligible products on its marketplace, the company confirmed to CNBC.
What Drove Curaleaf’s Stock Price Last Week?
On March 22, the US market fell on concerns over global growth prospects as the long-term bond yield fell below the short-term yield.
Walgreens Stock Continues to Fall Due to Multiple Price Cuts
Walgreens Boot Alliance (WBA) shares have taken a beating the past few days. Multiple analysts lowered their target price on the stock.
What’s Hurting CVS and Walgreens Stocks?
Walgreens Boots Alliance stock (WBA) fell 6.4% on March 1 after Baird’s reduction in target price.
Moat Index: Dramatic Sector Allocation Shift in 2018
The healthcare sector dominated the sector weighting for the Morningstar Wide Moat Index in 2018. The sector returned ~5% in 2018.
How Is Walgreens Boots Alliance Positioned in 2019?
As of January 18, Walgreens Boots Alliance (WBA) stock has risen 6.0% since the start of 2019.
CVS: Analysts’ Ratings and Target Prices
CVS Health posted stronger-than-expected third-quarter results on November 6. A few analysts raised the target prices on CVS stock.
Estimates and Recommendations for DaVita on September 17
Analysts estimate that DaVita (DVA) will report a 25.3% decline in revenues to $11.6 billion in 2018 compared to $15.5 billion in 2017.
Strong Q2 2018 Results Cushion CVS Health’s Falling Share Price
CVS Health’s (CVS) better-than-expected second-quarter results managed to please investors.
How Pharmacies and Drugstores Are Defending against Amazon
Amazon’s (AMZN) purchase of PillPack is expected to pose a threat to existing players in the pharmaceutical space.
What’s the Dividend Yield of the Consumer Non-Cyclical Sector?
The consumer non-cyclical segment recorded a dividend yield of 3%.
CVS Health and Walgreens: Financial Health
CVS recorded total sales of $186 billion (+4% YoY) in the last 12 months. The Pharmacy Services segment was the company’s biggest moneymaker.
CVS Health versus Walgreens: Comparing Pharmacy Giants
Around 70% of the US population lives within three miles of a CVS store, while more than 75% of the population lives within five miles of a Walgreens store.
Drugstore Stocks Tumble ahead of Trump’s New Drug Policy
The stocks of top drugstore chains CVS Health (CVS) and Walgreens Boots Alliance (WBA) were down yesterday amid ongoing tensions regarding a policy change in US drug pricing.
What’s LHC Group’s Business Strategy?
In 2018, LHC Group is expected to report revenue of $1.2 billion. What about its peers?
SuperValu Has Decided to Sell Farm Fresh
SuperValu (SVU) announced on March 14 that it’s selling 21 of its 38 Farm Fresh stores to three grocery store chains.
What Analysts Recommend for Civitas Solutions in March 2018
Of the four analysts covering Civitas Solutions, two analysts have given the stock a “strong buy” rating, and two analysts have given it a “buy” rating.
Analysts’ Ratings for AmerisourceBergen in March 2018
Four analysts gave AmerisourceBergen stock a “strong buy” rating, seven analysts gave it a “buy” rating, and seven analysts gave it a “hold” rating.
Analyzing AmerisourceBergen’s Recent Acquisitions
In December 2017, AmerisourceBergen (ABC) acquired Northeast Supply Company, or NEVSCO, for a consideration of $70 million.
How the Drug Store Industry Is Changing
The top three drugstore chains in the US are in the process of forming new associations through mergers and acquisitions to create a more diversified portfolio and protect themselves from the growing online threat.
Wall Street’s Take on Rite Aid after 3Q17 Results
Wall Street kept its stance unchanged on Rite Aid (RAD) after its third-quarter results. Evercore ISI, however, initiated coverage on the company on January 5 with an “underperform” rating.
Walgreens Delivers Strong Top-Line Growth in 1Q18
As we’ve discussed, Walgreens Boots Alliance (WBA) reported its 1Q18 results on January 4. The company’s top line increased 7.9% YoY (year-over-year) to $30.74 billion.
Walgreens Beats 1Q18 Sales and Earnings Expectations
Walgreens Boots Alliance (WBA) reported its results for 1Q18 on Thursday, January 4. The results relate to the three-month period ending November 30, 2017.
Stock Watch: No Respite for Rite Aid’s Shareholders
As we discussed throughout this series, Rite Aid (RAD) reported better-than-expected quarterly profits on January 3. However, the third quarter results couldn’t stop the slide in the company’s stock price.
Consumer Sector Insights for the First Week of 2018
The consumer staples sector had a slight gain of 0.10% led by a stock increase in the stock price of CVS Health, Coty, Estee Lauder, and Walmart.
Rite Aid’s 3Q17 Results: A Quick Look
Rite Aid Corporation (RAD) reported results for 3Q17 on Wednesday, January 3. The results relate to the three-month period ending December 2, 2017.
A Look at the Financial Details of the CVS-Aetna Deal
CVS is paying more than 11 times the trailing 12-month EBITDA for Aetna.
Deal of the Year: CVS to Buy Aetna for $69 Billion
CVS Health (CVS), America’s largest pharmacy chain, announced a $69 billion deal to purchase Aetna (AET), the country’s third-largest insurance company, on December 3, 2017.
CVS Health May Vertically Integrate Further by Acquiring Aetna
With trailing 12-month sales of $181 billion, CVS Health is a pharmacy colossus. However, its focus seems to be on becoming more than just a retail pharmacy chain.
Walgreens: Strong 4Q17 Results Support the Falling Stock Price
Walgreens Boots Alliance’s strong 4Q17 results were received well by the market. The company’s stock price rose 3% and closed at $69.36 on October 25.
Walgreens’ Top Line ahead of Its Fiscal 4Q17 Results
During the first nine months of 2017 (or 9M17), Walgreens Boots Alliance’s total sales increased 0.9% YoY to $89.5 billion.
Can Walgreens Exceed Analyst Expectations in Fiscal 4Q17?
Walgreens Boots Alliance (WBA) is slated to release its fiscal 4Q17 earnings on October 25. WBA’s total sales are expected to reach $29.6 billion, a 4.6% increase over its fiscal 4Q16 sales.
Walgreens versus CVS: Comparing Near-Term Earnings Potential
Wall Street analysts are projecting 11.2% earnings growth for Walgreens over the next year.
CVS versus Walgreens: Business Health Checkup
Walgreens’ US Retail Pharmacy business, which generates more than 70% of the company’s total sales, has enjoyed decent sales growth. Its top line improved 3.1% in the first nine months of fiscal 2016.
Walgreens versus CVS: Discussing PBM Strategies
In August 2016, Walgreens announced a long-term strategic alliance with Prime Therapeutics, America’s fourth-largest PBM.
Walgreens versus CVS: Comparing International Presence
The US is Walgreens’ largest market and accounts for more than 70% of its total sales and operating income.
Walgreens versus CVS: Comparing Pharmacy Giants
The US drugstore market is dominated by two major players—CVS Health (CVS) and Walgreens Boots Alliance (WBA). CVS and WBA accounted for ~29% of the country’s prescription dispensing revenues in 2016.
Walgreens, Rite Aid, CVS Tumble on the Amazon Scare
Three months after its Whole Foods acquisition, Amazon is making waves again with rumors that it is eying the prescription drug distribution business.
A Look at Rite Aid’s Stock Crash This Year
Rite Aid’s shareholders have been the real losers from the delay and eventual termination of the deal between Rite Aid (RAD) and Walgreens Boots Alliance (WBA) in October 2015.
Here’s Why Rite Aid’s Margins Have Deteriorated over the Years
Rite Aid’s profitability has worsened over the years. Its gross margin has fallen from 29.0% in fiscal 2013 to just 22.6% in the first quarter of the current fiscal year.
Rite Aid Ready to Report 2Q17 Earnings: What to Expect
Rite Aid (RAD) is slated to release its fiscal 2Q17 results on Thursday, September 28, 2017. Its EPS (earnings per share) is projected to fall to zero from last year’s $0.01.
Kao Corporation: What’s Sharpening Its Competitive Edge?
Kao Corporation has become the largest branded and packaged goods company in Japan and the second-largest company in the cosmetics category.
How to Identify Economic Moats
In this series, we’ll discuss how intangible assets can create long-term competitive advantages for companies.
Walgreens’s Pharmacy USA Division Delivers Superb 3Q17 Performance
The Retail Pharmacy USA division accounted for ~75% of Walgreens Boots Alliance’s (WBA) top line in 3Q17.
Wall Street Sees a 22% Upside in Walgreens
Walgreens is covered by 25 Wall Street analysts. The company has received a rating of 2 on a scale of 1 (strong buy) to 5 (sell). It has 72% “buy” and 28% “hold” recommendations and no “sell” recommendations.
Eosinophilic Esophagitis: Major Market Opportunity for Dupixent?
Regeneron (REGN) has obtained positive results from its Phase 2 proof-of-concept study evaluating Dupixent in eosinophilic esophagitis.
Walgreens, Rite Aid, and Fred’s: The Shifting Landscape
WBA’s CEO, Stefano Pessina, said that he remains positive about the Rite Aid deal, which has been waiting for FTC approval for more than a year.
How Mergers & Acquisitions Could Boost Moat Indexes
VanEck U.S. Domestic Moats: Buy Buy Baby Infant formula company Mead Johnson Nutrition Co. (MJN US, +24.60%) benefited from corporate action news shortly after being added to the U.S. Moat Index in December. News of an intended acquisition of MJN US by narrow moat UK conglomerate Reckitt Benckiser Group (RB GB) boosted shares of the […]
What’s Happened since the Walgreens–Rite Aid October 2015 Deal?
The merger of Walgreens and Rite Aid would join the second- and third-largest drugstore chains and thus significantly reduce competition.
Walgreens’s Currency Headwinds for Its International Businesses
In the last couple of quarters, Walgreens Boots Alliance’s (WBA) fiscal 1Q17 top line was negatively affected by currency headwinds, falling 1.8% YoY.
Walgreens Boots Alliance’s SWOT Analysis ahead of 1Q17 Results
Let’s wrap up this series on Walgreens (WBA) with a brief SWOT (strengths, weaknesses, opportunities, and threats) to gauge the company’s standing.
Where Does Walgreens’s Deal with Rite Aid Stand a Year Later?
Walgreens’s deal with Rite Aid is currently awaiting the Federal Trade Commission’s (or FTC) approval. The FTC has asked Walgreens to close or sell ~650 stores.
Looking Back: What Drove Target’s Top Line in 2Q16?
In 2Q16, mass merchandiser Target (TGT) reported a 7.2% decline in its top line to $16.2 billion. Target’s 2Q16 revenues were affected by lower traffic and higher variability in sales patterns.
Lower Traffic Resulted in Target’s Fiscal 2Q16 Total Sales Dip
Target’s (TGT) revenue declined 7.2% to $16.2 billion in fiscal 2Q16 from $17.4 billion in fiscal 2Q15.
How Was Walgreens’s Retail Pharmacy Business Performance in the US?
Walgreens (WBA) operates close to 8,200 pharmacies in the US. It is closely followed by CVS Health (CVS), which operates slightly fewer than 8,000 pharmacies.