Is CVS Stock a Buy With a 3.5% Dividend and 20% Upside?

Boy oh boy, has CVS Health (NYSE:CVS) been under pressure. CVS stock has spent 2019 in the dumpster so far, down about 14.3% on the year now. That badly lags the 48-stock iShares U.S. Healthcare Providers ETF (NYSEARCA:IHF), which has climbed 9.9% year to date. CVS Health stock is the fund’s third-largest holding. Well, that may not actually be the case.

CVS stock has some merits worth discussing, even if some investors don’t conclude that it’s a buy. Let’s take a deeper look at both the fundamentals and the technical setup on the chart. CVS stock is fueled by incredible sales, thanks in part to its acquisition of Aetna. Analysts expect revenue of $252.6 billion for 2019, a near-30% jump from the prior year. To be sure, the balance sheet could be more attractive. But after all, when a stock trades at sub-10x earnings, there’s often a reason. With a decent dividend and solid growth though, some may look past those restraints and find CVS stock attractive.

Source: InvestorPlace

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