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Bulls
- CVS' diverse operations create the opportunity to view a patient more holistically by managing both medical and pharmacy benefits, which could lead to revenue and cost synergies for the organization.
- The firm's entry into provider services has the potential to improve returns for all of CVS' segments if it can help patients more easily and cost-effectively manage chronic conditions through early intervention.
- CVS' PBM remains an industry leader due to its intense focus on pharmaceutical cost trends that should continue to attract clients.Bear
- Healthcare reform will likely remain a recurring political topic until universal, affordable coverage is achieved in the U.S., and CVS' stock may experience volatility if scenarios that threaten its prospects gain traction. u
- Foot traffic at physical retail stores could continue to decline as consumers increasingly favor online retailers, like Amazon, creating the need to reinvent its retail store footprint's operations.
- CVS' profit growth prospects appear lower than its managed care peers due to the challenges it faces in its retail operations.
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Disclaimer
The user julio holds no position in NYSE:CVS. Simply Wall St has no position in any of the companies mentioned. The author of this narrative is not affiliated with, nor authorised by Simply Wall St as a sub-authorised representative. This narrative is general in nature and explores scenarios and estimates created by the author. The narrative does not reflect the opinions of Simply Wall St, and the views expressed are the opinion of the author alone, acting on their own behalf. These scenarios are not indicative of the company's future performance and are exploratory in the ideas they cover. The fair value estimates are estimations only, and does not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that the author's analysis may not factor in the latest price-sensitive company announcements or qualitative material.
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