Analysts discuss CVS's potential with activist interest, focusing on insurance challenges and growth opportunities.

From CNBC: 2024-10-04 13:07:00

In the podcast, Motley Fool analysts discuss CVS’s potential with activist investors circling and the impact of interest rates on housing and auto markets. CVS is working to improve its insurance operations, while hedge fund Glenview Capital has taken interest in the company. CVS’s insurance arm faces challenges, as costs outpace revenues and Medicaid payouts fall short of expectations. The pharmacy benefits management and retail segments remain strong, with potential for growth. The stock has been flat over the last five years, with recent activist interest driving potential value for investors. CVS’s focus on improving its insurance operations and pricing strategy could lead to better performance in the future. Investors may consider CVS for its diverse business segments and potential for growth.



Read more at CNBC: An Activist Investor Is Interested in CVS; We Take a Look