From Nasdaq:

The Retail – Pharmacies and Drug Stores industry has seen significant changes due to the public health crisis, with digital health services and pharmacy digitization rising. Companies like CVS Health, Herbalife, and Rite Aid are seeing growth, but are facing challenges like labor shortages and inflation. Amazon’s entry into the market has added competition.

The Retail – Pharmacies and Drug Stores industry has expanded significantly in recent years, with companies adding wellness products and groceries to their traditional prescription and over-the-counter medication sales. Non-healthcare leaders like Amazon have entered the market, increasing competition for existing companies.

Three major trends have emerged in the Retail – Pharmacies and Drug Stores industry: digital adoption has greatly increased, there are difficulties with pharmacy reimbursement, and Amazon’s entry is stealing market share and creating intense competition for other retail pharmacies.

The Zacks Industry Rank for the Retail – Pharmacies and Drug Stores industry indicates dull near-term prospects, with the industry underperforming the S&P 500 and its sector. The industry is currently trading at a forward 12-month price-to-earnings (P/E) of 8.67X, which is lower than the sector and S&P 500.

Retail – Pharmacies and Drug Stores stocks such as CVS Health, Herbalife, and Rite Aid are seeing growth and engagement, with increased digital capabilities and expansion of services. The Zacks Consensus Estimate for revenues in 2023 and 2024 indicates growth for these companies. CVS Health has a Zacks Rank #3 (Hold), Herbalife carries a Zacks Rank #3, and Rite Aid is benefiting from expansion of delivery services and has a Zacks Rank #3.



Read more: 3 Retail Pharmacy & Drugstore Stocks to Watch Amid Industry Headwinds