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Is CVS lagging behind?

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Yesterday (Tuesday), CVS (CVS Health Corp., $71.90) announced their new “next-day” home prescription delivery service for their exclusive customers. As well as delivering prescribed medication, they will also deliver:

  • Cold and flu remedies
  • Digestive health
  • First aid
  • Allergy medications
  • Pain relief
  • Baby care products
  • Personal and feminine care
  • Vitamins

Smart move CVS, but aren’t you a little late on this?

From AMZN (Amazon, $1,728.82) to WMT (Wal-Mart, $84.55), large corporations are staying ahead and adding a two-day shipping feature to their shipping system. CVS is ranked as one of the largest retail pharmacy chains in America. With a fair net profit margin of 3.59% (compared to the overall HC industry of 4.92%), CVS manages over 1 billion prescriptions a year and their new “next-day” feature will be an excellent add-on for their customers.

Speaking from personal experience (working in the healthcare field), picking up prescriptions is a constant burden for families everywhere. Specifically for elders, there is a constant request for mail delivery options for medications. There are many elders who cannot drive well due to their poor medical or cognitive conditions, they are constantly depending on busy caregivers or family friends to retrieve their medications.

As an investment, many investors see CVS riding a bullish trend for quite some time since it’s price drop from 2015 at $113.65. However, it is claimed by analysts ait’s still a valuable longterm hold, their 1-year target price is $88.25.

Please see About Me & Disclaimer for additional information about Black Tea.

Information Obtained: WSJ.com, LinkedIn Business Daily, Cnbc.com

Categories: Blogs, Stock Investing 101

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