5 Best Cheap Stocks To Buy Now According To Ray Dalio

4. CVS Health Corporation (NYSE:CVS)

333,804 is the number of shares held by Bridgewater Associate in CVS Health Corporation (NYSE:CVS) at the end of September, giving the firm a stake worth $19.5 million in the company. A total of 65 hedge funds tracked by Insider Monkey held long positions in the stock, down by 8% from one quarter earlier.

According to Yahoo Finance, the stock is trading at a trailing PE ratio of 11.51 and is valued at $91.14 billion. During Q3, the company has increased year-over-year revenues by about 3.5%. Miller Value Partners renewed its position in the stock during Q3. Here is what they had to say about CVS in their Q3 2020 Investor Letter:

“CVS is a name we owned earlier but exited in the COVID hit to deploy funds to names offering more significant near term recovery potential. CVS lagged in the ensuing recovery but we still think it’s an undervalued mix of businesses. If you value the pieces, a healthcare insurance company, a pharmacy benefits manager, and a retail pharmacy, you get values roughly 50% greater than the current stock price. We think its vertical integration strategy around lowering the cost of healthcare through “Health Hubs” offers you free option value at current prices. We used long-term call options which we thought offered favorable risk-return.”