Larry Robbins’ 10 Best Stocks to Buy Now

2. CVS Health Corp (NYSE:CVS)

Total Number of Shares Owned: 9,162,389

Total Value of Shares Owned: $541,130,694

Number of Hedge Fund Investors: 60

CVS Health Corp (NYSE:CVS) is showing strong potential for growth, backed by its solid Q2 2024 performance and strategic initiatives. CVS Health Corp (NYSE:CVS) reported a revenue increase of about 7% compared to the same quarter last year, driven by higher demand for its pharmacy services and an expansion of healthcare offerings. This impressive growth underscores CVS Health Corp (NYSE:CVS)’s ability to capture a larger share of the market.

A key factor in CVS Health Corp (NYSE:CVS)’s positive outlook is its transformation into a more integrated healthcare provider. CVS Health Corp (NYSE:CVS) is enhancing its health services by expanding MinuteClinics and improving its telehealth capabilities, catering to consumers who prefer convenient healthcare options. This shift not only attracts new customers but also positions CVS Health Corp (NYSE:CVS) as a leader in the changing healthcare landscape.

CVS Health Corp (NYSE:CVS)’s strategy includes important acquisitions, such as the ongoing integration of Aetna, which allows the company to offer more comprehensive care solutions. This integration is aligned with the industry’s movement toward value-based care, which focuses on improving patient outcomes and driving long-term growth. Recent news has further strengthened CVS Health Corp (NYSE:CVS)’s position, including plans to expand partnerships with various health systems. These collaborations will enhance access to healthcare services and improve care coordination.

Additionally, CVS Health Corp (NYSE:CVS) has been actively involved in addressing public health challenges, such as COVID-19 vaccinations and testing, reinforcing its role as a trusted healthcare provider.

Ariel Global Fund stated the following regarding CVS Health Corporation (NYSE:CVS) in its Q2 2024 investor letter:

“American healthcare company, CVS Health Corporation (NYSE:CVS), also declined following disappointing earnings results and a subsequent reduction in full year guidance. The miss was primarily due to increased utilization of Medicare Advantage plans and weakness in the health services segment driven by the loss of a large client and continued pharmacy client price improvements.

In response, management reiterated its focus on improving margins and enhancing its positioning in Medicare Advantage. CVS believes the program can remain an attractive business for Aetna and CVS Health over time and will construct its bid for 2025 as a multi-year repricing opportunity across plan level benefits. Meanwhile, CVS continues to return capital to shareholders through dividends and a recent accelerated share repurchase transaction.”