We recently came across a slew of items on drug retailing giant CVS Caremark. A number of observers have noted that the company looks undervalued, especially on a sum-of-the-parts basis. Fortunately for the longs there seems to be a catalyst on the horizon. A worsening flu season could lead to higher foot traffic (and sales) at their stores. In addition the company’s stock has been underperforming its closest peer Walgreens since the middle of 2010. In today’s screencast we take a look at the chatter surrounding CVS stock.
Items mentioned in the above screencast:
35 undervalued stocks trading under $35. (Value Expectations)
The case for CVS Caremark being undervalued. (SumZero)
@CapitalObserver, “New position in drugstore chain $CVS . Remarkably steady business, that has little economic sensitivity for a below market multiple.” (StockTwits)
Drugstore traffic up due to worse than expected flu season. (Business Insider)
@suriNotes, a bullish pattern in CVS. (Chart.ly)
Daily price chart of CVS Caremark (CVS). (Finviz)
Price ratio chart of CVS vs. Walgreens (WAG). (StockCharts)
*No position in CVS.