Yahoo Finance CVS Health (CVS) Expands Food and Beverage Line With New Launch
CVS Health’s CVS retail division — CVS Pharmacy — launched Well Market, a new store brand consumables line featuring snacks, beverages and groceries. Products from Well Market can now be purchased on CVS.com and in CVS pharmacies across the United States.
The recent development will expand CVS Health’s food and beverage portfolio.
More on Well Market
Well Market provides a range of products with zero grams of trans fat and no artificial preservatives, sweeteners, or colors and products that reflect consumer preferences for certain trends and flavors. Well Market offers products to suit a wide range of wellness objectives and particular taste preferences, whether clients want to fulfill a yearning for something more decadent or have special dietary requirements or preferences like vegan, gluten-free, or keto.
The Well Market brand offers a blend of mouthwatering flavors and nutritious options, expertly crafted and taste-tested by food enthusiasts. Well Market's inventive flavors satisfy a wide range of palates, offering everything from strong and spicy to sweet and savory selections, such as Dark Chocolate Lightly Dipped Cashews and Sea Salt Rustic Plantain Chips.
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With more than 9,000 CVS Pharmacy locations across the country, getting delectable snacks is quick and easy. The majority of the Well Market line's products range in price from $2.99 to $8.99 and are protected by our 100% money-back guarantee.
Benefits of New Launch
CVS Health aims to be the most consumer-centric healthcare solutions company. Through this repositioning and expansion of its food and beverage portfolio, CVS Health is offering new nutritious options to its customers.
With its first-to-market range of flavor-infused sprouted almonds that includes Salt & Vinegar, Zesty Dill Pickle and Maple Cinnamon, each flavor is injected during the sprouting process, the well-timed market launch is also altering the way flavors are introduced. Customers may enjoy more from every bite thanks to this launch, which not only improves taste and keeps hands clean but also suggests that sprouting may facilitate the body's easier digestion of the nutrients in almonds.
Industry Prospects
Per a report, the global health and wellness market was valued at $5,546.0 billion in 2023 and is expected to reach more than $9,245.8 billion by 2033, registering a CAGR of 5.2% from 2024 to 2033. The market is primarily driven by the increased consumer expenditure of a wide variety of health and wellness products and services across the globe.
Other Notable Highlights
Over the last few quarters, the Pharmacy & Consumer Wellness business registered revenue growth after several quarters of a drag. Amid the pandemic, this segment plays a crucial role in the company’s community-focused strategy.
The company’s considerable expansion in the retail pharmacy has led to significant market share increases over time. This demonstrates the benefit the company offers to pharmacy patients and the investments made to enhance their experiences.
In December 2023, CVS Health unveiled its new CVS CostVantage model in the pharmacy and consumer wellness business. This model proactively addresses the persistent reimbursement pressures in the retail pharmacy industry. During the first quarter, the company signed CVS CostVantage agreements with multiple third-party discount card administrators that were effective on Apr 1 and represent more than 50% of all CVS discount card volume.
Price Performance
In the past six months, CVS’ shares have declined 15.5% compared with the industry’s rise of 16.3%.
Zacks Rank and Key Picks
CVS Health currently carries a Zacks Rank #5 (Strong Sell).
Some better-ranked stocks from the broader medical space are Medpace MEDP, ResMed RMD and Encompass Health Corporation EHC.
Medpace, sporting a Zacks Rank #1 (Strong Buy), reported a first-quarter 2024 EPS of $3.20, which beat the Zacks Consensus Estimate by 30.6%. Revenues of $511 million improved 17.7% from last year’s comparable figure. You can see the complete list of today’s Zacks #1 Rank stocks here.
Medpace has an estimated 2024 earnings growth rate of 26.5% compared with the industry’s 12.3%. The company’s earnings surpassed estimates in each of the trailing four quarters, the average being 12.8%.
ResMed, sporting a Zacks Rank #1, reported a first-quarter 2024 EPS of $2.13, which topped the Zacks Consensus Estimate by 10.9%. Revenues of $1.20 billion surpassed the Zacks Consensus Estimate by 1.9%.
RMD has an estimated fiscal 2024 earnings growth rate of 17.9% compared to the industry’s 15.7%. In each of the trailing four quarters, the company delivered an average earnings surprise of 2.8%.
Encompass Health, carrying a Zacks Rank #2, reported a first-quarter 2024 adjusted EPS of $1.12, which surpassed the Zacks Consensus Estimate by 20.4%. Net operating revenues of $1.3 billion topped the Zacks Consensus Estimate by 3.6%.
EHC has an estimated long-term earnings growth rate of 15.6% compared with the industry’s 11.7% growth. The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 18.7%.
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