The Pharmacy Stock That's Cheaper Than It Should Be

Despite significant market volatility and looming economic troubles, it's been an excellent year for CVS Health (NYSE: CVS): Shares of the pharmacy giant have soared by 76% since early January. Despite this strong performance, an argument can be made that CVS remains more than reasonably valued. That's the case if we go by at least one popular valuation metric -- the stock was recently trading at 10.7 times forward earnings, much lower than the 17.3 average for the healthcare industry.Digging deeper into CVS Health's business reveals an excellent outlook that makes it a strong buy, especially at current levels.For the past few years, CVS has been dealing with problems in its Medicare Advantage (MA) unit, part of its healthcare benefits segment, which primarily provides a range of insurance-related services. The company was struggling to keep costs down and margins up, leading to worsening results on the bottom line. Last year, the MA segment's operating margins were in the range of negative 4.5% to negative 5%.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool