CVS - CVS Health: Mismanagement Eroding Moat And Poor Momentum Make It A Sell

2024-06-21 13:18:38 ET

Summary

• CVS Health Corporation posted a horrid quarter. Management showed cracks in their integration model.
• Management's integration plan not panning out, recent performance issues, increased competition, and government scrutiny add complexity.
• I recommend avoiding CVS Health stock despite perceived undervaluation, citing misread competitive advantages and uncertain growth rates.

Written by Sam Kovacs.

Introduction

For those of you who've been with us for a while, you know that June is "cull season." It's the time of year, when we review our holdings, our coverage, and ask the tough question: when were we wrong?...

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