CVS Health Corporation (NYSE:CVS) Has Attractive Fundamentals, Here’s Why

CVS Health Corporation (NYSE:CVS) is a stock with outstanding fundamental characteristics. When we build an investment case, we need to look at the stock with a holistic perspective. In the case of CVS, it is a dependable dividend payer that has been a rockstar for income investors, currently trading at an attractive share price. In the following section, I expand a bit more on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, take a look at the report on CVS Health here.

Very undervalued established dividend payer

CVS’s shares are now trading at a price below its true value based on its discounted cash flows, indicating a relatively pessimistic market sentiment. According to my intrinsic value of the stock, which is driven by analyst consensus forecast of CVS’s earnings, investors now have the opportunity to buy into the stock to reap capital gains. Compared to the rest of the healthcare industry, CVS is also trading below its peers, relative to earnings generated. This further reaffirms that CVS is potentially undervalued.

NYSE:CVS PE PEG Gauge Jun 14th 18

For those seeking income streams from their portfolio, CVS is a robust dividend payer as well. Over the past decade, the company has consistently increased its dividend payout, reaching a yield of 3.01%.

NYSE:CVS Historical Dividend Yield Jun 14th 18

Next Steps:

For CVS Health, I’ve put together three fundamental factors you should further examine:

1. Future Outlook: What are well-informed industry analysts predicting for CVS’s future growth? Take a look at our free research report of analyst consensus for CVS’s outlook.

2. Historical Performance: What has CVS’s returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.

3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of CVS? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned.