CVS - Still Undervalued But Questions About CVS Health's Competitive Advantage Remain (Rating Downgrade)

2024-03-12 06:03:48 ET

Summary

• CVS Health reported solid full-year results for fiscal 2023, but already had to lower its guidance for fiscal 2024.
• During the 2023 investor day, CVS also lowered its long-term guidance but is still expecting earnings per share to grow at least 6%.
• The stock is still deeply undervalued, and we can bet on a reversion to the mean.

When investing in stocks, not every investment is working out. But expecting every investment to work out is an impossible standard and to make money as an investor, it is certainly enough when one out of two investments is becoming a success. Especially for long-term investors, it is enough to have a few major winners that will balance out terrible investments. A stock tripling or quadrupling within one decade can offset losses from several other stocks....

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