Here are Reasons to Buy CVS Health Corporation (CVS) - InvestingChannel

Here are Reasons to Buy CVS Health Corporation (CVS)

Oakmark Funds, advised by Harris Associates, released its “Oakmark Fund” third quarter 2023 investor letter. A copy of the same can be downloaded here. The fund returned -1.31% in the third quarter, 15.91% calendar year to date, and 27.84% for the fiscal year. The S&P 500 Total Return Index delivered -3.27%, 13.07%, and 21.62%, respectively, for the same periods. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.

Oakmark Fund highlighted stocks like CVS Health Corporation (NYSE:CVS) in the third quarter 2023 investor letter. Headquartered in Woonsocket, Rhode Island, CVS Health Corporation (NYSE:CVS) is a health services provider that operates through Health Care Benefits, Pharmacy Services, and Retail/LTC segments. On October 6, 2023, CVS Health Corporation (NYSE:CVS) stock closed at $69.90 per share. One-month return of CVS Health Corporation (NYSE:CVS) was 1.67%, and its shares lost 20.79% of their value over the last 52 weeks. CVS Health Corporation (NYSE:CVS) has a market capitalization of $89.78 billion.

Oakmark Fund made the following comment about CVS Health Corporation (NYSE:CVS) in its Q3 2023 investor letter:

“CVS Health Corporation (NYSE:CVS) is a diversified health care conglomerate with leading positions across multiple aspects of health services. The company owns the #1 pharmacy benefit manager, #1 retail pharmacy, #1 specialty pharmacy, #3 commercial health insurer and #3 Medicare Advantage organization in the U.S. Managed care and pharmacy benefits management have proven to be good businesses over time, characterized by healthy underlying growth and excellent free cash flow generation. CVS has underperformed the S&P 500 by more than 40 percentage points over the past 12 months, impacted by a cloud of company-specific and legislative concerns. While we are not dismissive of these potential risks and headwinds, we believe the market has become overly pessimistic. This created an attractive opportunity to invest in what we view as a durable, competitively advantaged and well-managed enterprise at a high-single-digit multiple of earnings.”

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CVS Health Corporation (NYSE:CVS) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 66 hedge fund portfolios held CVS Health Corporation (NYSE:CVS) at the end of the second quarter, which was 77 in the previous quarter.

We discussed CVS Health Corporation (NYSE:CVS) in another article and shared the list of Michael Burry stocks other hedge funds like too. In addition, please check out our hedge fund investor letters Q3 2023 page for more investor letters from hedge funds and other leading investors.

 

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Disclosure: None. This article is originally published at Insider Monkey.

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