From Barchart: 2024-06-05 11:41:00

The Retail – Pharmacies and Drug Stores industry is shifting towards digital consumption of healthcare products and services, with growing demand for remote patient care. While industry stalwarts like Walgreens Boots Alliance and Herbalife are investing strategically, heavyweights like CVS Health are facing challenges due to rising expenses and labor shortages.

Three trends shaping the industry’s future include massive digital adoption, led by online pharmacies, Amazon Pharmacy stealing market share with innovative services like same-day delivery and drone delivery, and a difficult pharmacy reimbursement scenario due to rising medicine prices and non-reimbursable expenses.

Despite potential growth in the industry, the Zacks Industry Rank for Retail – Pharmacies and Drug Stores is low, indicating dull near-term prospects. Stocks like Walgreens Boots and Herbalife show promise with revenue growth forecasts, but industry as a whole has underperformed the S&P 500 and sector. CVS Health is striving to innovate and expand in promising areas to stay competitive.



Read more at Barchart: 2 Stocks to Watch & One to Avoid From the Volatile Retail Pharmacy Industry