Is CVS a buy right now?

[peenie 1,896]

Healthcare stocks are all going down right now. Is this an example of a good time to buy? I remember reading whathisname saying that he buys when everyone else is scared, when there is blood in the streets. (Warren Buffet)

[Patented Phil 1,469]

1 minute ago, peenie said:

Healthcare stocks are all going down right now. Is this an example of a good time to buy? I remember reading whathisname saying that he buys when everyone else is scared, when there is blood in the streets. (Warren Buffet)

Maybe he meant that literally.

[peenie 1,896]

Just now, Patented Phil said:

Maybe he meant that literally.

Lololol! True, true! I didn't think about that one. 

[peenie 1,896]

What about all these weight loss/diabetes drugs? Novo went sky high because of Ozempic and Eli Lilly sure doubled because of their weight loss (diabetes) drugs; Mounjaro and Zepbound. Did any of you have these companies in your portfolio? 

[easilyscan 855]

19 minutes ago, peenie said:

Healthcare stocks are all going down right now. Is this an example of a good time to buy? I remember reading whathisname saying that he buys when everyone else is scared, when there is blood in the streets. (Warren Buffet)

Start here.

https://www.macrotrends.net

Type in the symbol & start with revenues.

I have to run, if I get back at a decent hour, I'll check it out myself & report back.

[peenie 1,896]

17 minutes ago, easilyscan said:

Start here.

https://www.macrotrends.net

Type in the symbol & start with revenues.

I have to run, if I get back at a decent hour, I'll check it out myself & report back.

Oh my! Thanks! I'm afraid I don't look at those types of charts. I guess I should start. 
What should I look for? Profit? Operating Income? What even is EBITDA? 

 

Quote

EBITDA, short for earnings before interest, taxes, depreciation, and amortization, is an alternate measure of profitability to net income. It's used to assess a company's profitability and financial performance.

How do you use that website to help you pick stocks? I love to learn new things from you guys!! You all are so smart!! 

[thegeneral 2,880]

Oddly I was just in a CVS for the first time in I don’t know how long this afternoon. Pharmacy was good, sorted out something for me. The store looked like it was from the early 80’s though.

[Hardcore troubadour 14,906]

I have grown to hate CVs. I use an independent when I can. Also got a little tired of their 9 dollar birthday cards. Ridiculous. 

[jerryskids 6,547]

I just picked up two prescriptions from CVS; I only use them because they are the preferred supplier of my health care company.  That being said, it's hard to imagine they have a robust future.  I suspect all of the overpriced stuff in their store is a loss leader so people kill time while their prescriptions are filled.  But companies like Amazon, Costco, Walmart all do prescriptions now, and they must be eating into the prescription businesses of the pharmacy chains (CVS and Walgreens here, I know Rite Aid is big in other places).   

[BunnysBastatrds 2,304]

 I go to Walgreens to get my prescriptions. All of them here have drive up pick up for them. Avoids having to go into the store and peruse for shiot I didn’t need. And yes, the stores like CVS, Walgreens, and a few  more are competing for every single dollar they can. Convenient is your friend. And no. I don’t think it’s wise to buy stock in a market that is flooded with competitors. 

[peenie 1,896]

Well, I think the store may suck but aren't they also part of Aetna? I think their pharmacy is still robust. 

[IGotWorms 4,057]

No they’re focked with Amazon and other mail pharmacy services. No one actually picks up a prescription if they can avoid it anymore 

[TimHauck 2,598]

I think their best hope is the MinuteClinic.  I use it a lot when the kids get sick since it’s almost impossible to get a same day appointment with a regular doctor.

[Maximum Overkill 1,738]

29 minutes ago, TimHauck said:

I think their best hope is the MinuteClinic.  I use it a lot when the kids get sick since it’s almost impossible to get a same day appointment with a regular doctor.

Naaa, too many Urgent Cares now. 

[WhiteWonder 2,674]

CVS is technically my pharmacy. I have like 5 that are all fairly convenient. I pick any prescriptions up at their drive through. I also happen to use CVS as a pseudo bank since my main checking account is with Cap One and there are no convenient locations to me. CVS ATM's have no fees for Cap One and I can also deposit cash in the store when needed using the Cap One app.  I even had a bunch of photos printed out to frame as a gift for a family member. Placed the order on their site and picked it up in store like 15 minutes later. 

i'd never buy food, greeting cards, etc in there but they often give me a crap ton of coupons and sometimes there are good ones for basically free vitamins and supplements. 

I even had my jab there back in 2021. 

I don't see them going away but would also doubt they would be a good investment, unless they have gone down enough in the past few weeks/months to make them a reasonable bounce play. 

[supermike80 1,795]

4 hours ago, Hardcore troubadour said:

I have grown to hate CVs. I use an independent when I can. Also got a little tired of their 9 dollar birthday cards. Ridiculous. 

Dollar store is your friend for all cards

[Horseman 2,353]

Ugh. 

Quit trying to play Warren Buffet and buy an index fund for fok sake. 

.

.

[Horseman 2,353]

1 hour ago, TimHauck said:

I think their best hope is the MinuteClinic.  I use it a lot when the kids get sick since it’s almost impossible to get a same day appointment with a regular doctor.

Do they feel gross after their showers?

[TimHauck 2,598]

6 minutes ago, Horseman said:

Do they feel gross after their showers?

Still waiting on those discord screenshots from the Georgia shooter, liar

[Horseman 2,353]

3 minutes ago, TimHauck said:

Still waiting on those discord screenshots from the Georgia shooter, liar

Try holding your breath. If that doesn't work, try a plastic bag.  

[easilyscan 855]

6 hours ago, peenie said:

How do you use that website to help you pick stocks? 

I don't use the macro-trends site to pick stocks. Only use it to check the fundamentals such as top line (revenues) bottom line (earnings per share) net profit margins, etc, when I find a stock I'm interested in. 

As for CVS, Revenues look great.

CVS Health annual revenue for 2023 was $357.776B, a 10.95% increase from 2022.
CVS Health annual revenue for 2022 was $322.467B, a 10.39% increase from 2021.
CVS Health annual revenue for 2021 was $292.111B, a 8.71% increase from 2020.

That's impressive for a company that size. Unfortunately, trailing 12 months EPS is showing a negative trend.

Beginning with Q3 2023

$6.67 - $6.47 - $5.70 - $5.63 - $3.95 

Net margins for the same period

2.48% - 2.33% - 1.98% - 1.36%

Lastly, look at total returns. $100 invested in CVS stock 5 years ago would be worth $69.37 today. Total return includes price appreciation plus reinvesting any dividends paid out.

https://www.financecharts.com/stocks/CVS/growth/total-return

If that wasn't bad enough, the Justice Department recently filed a nationwide Lawsuit Alleging CVS Knowingly Dispensed Controlled Substances (Opioids) in Violation of the Controlled Substances Act and the False Claims Act. I'm afraid the company's future will be similar to Walgreens. Walgreens' stock is trading near 30-year lows and down 65% YTD

Ultimately, you're the only one who can decide whether or not to invest in the stock, but I wouldn't. Almost forgot. As at least one person already mentioned, you have the Amazon factor as well.