CVS Caremark Corporation (CVS) and Walgreen Company (WAG): Will Obamacare Navigators Just Twiddle Their Thumbs?

CVS Caremark Corporation (NYSE:CVS) wasn’t too far behind. Later in July, the company announced that it also will launch an initiative to help inform consumers about health reform. CVS said those efforts would include “retail events and brochure displays” at its retail pharmacies and MinuteClinic locations. The company also planned to invite navigators into its stores to help customers enroll on the online exchanges.

The HealthPocket survey also found that 11% of overall respondents (nearly a third of those likely to purchase insurance) will look to the Internet to obtain information about Obamacare. This should be a positive for eHealth, Inc. (NASDAQ:EHTH), which recently won a contract to support enrollment on federal exchanges through its website. The company is hoping to participate in some of the state-operated exchanges as well.

WebMD Health Corp. (NASDAQ:WBMD) could also be a beneficiary. The company is already a primary Internet source for health information for millions of Americans. WebMD recently launched a comprehensive online guide to help consumers understand Obamacare.

Foolish take
It’s easy to see survey results and jump to conclusions that might not be on target. However, it’s also easy to leap to the wrong conclusions in investing matters. Just because CVS Caremark Corporation (NYSE:CVS), Walgreen Company (NYSE:WAG), eHealth, Inc. (NASDAQ:EHTH), and WebMD Health Corp. (NASDAQ:WBMD) might benefit in some ways from helping consumers understand Obamacare, that doesn’t automatically make them solid investment choices.

I think CVS Caremark Corporation (NYSE:CVS) and Walgreen Company (NYSE:WAG) could be good stock picks because of overall health trends and their business models. Any benefits they receive from helping educate about health reform are nice but don’t by themselves make for a compelling reason to buy the stocks. Navigating Obamacare is fine, but finding the way to solid earnings growth is even better.

The article Will Obamacare Navigators Just Twiddle Their Thumbs? originally appeared on Fool.com and is written by Keith Speights.

Fool contributor Keith Speights and The Motley Fool have no position in any of the stocks mentioned. 

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