5 Most Undervalued Retail Stocks To Buy Now

3. CVS Health Corporation (NYSE:CVS)

PE as of March 26: 12.24

Number of Hedge Fund Holders: 67

CVS Health Corporation (NYSE:CVS) offers healthcare and pharmacy retail services through its various segments, including Health Care Benefits, Health Services, and Pharmacy & Consumer Wellness. A few of its retail businesses include CVS Pharmacy, Inc., MinuteClinic, and more. As of March 26, the stock has a PE ratio of 12.24. CVS Health Corporation (NYSE:CVS) is the third most undervalued retail stock to buy.

Hedge fund sentiment was positive toward CVS Health Corporation (NYSE:CVS) in Q4 of 2023 as hedge funds with investments in the stock were 67 in the quarter, with positions worth $2.36 billion. This is compared to 64 funds with positions worth $1.85 billion in the preceding quarter. Marshall Wace LLP is the top investor in the company as of Q4 of 2023. In the quarter, the firm increased its stake by 84% to 4.8 million shares worth $382.673 million, representing 0.64% of the investment portfolio.

On March 15, Piper Sandler raised the price target on CVS Health Corporation (NYSE:CVS) to $94 from $93 and kept an Overweight rating on the shares. The analyst mentioned that the firm has hope in the company’s CY24 medical loss ratio guidance.

ClearBridge Investments stated the following regarding CVS Health Corporation (NYSE:CVS) in its Q3 2023 investor letter:

“Other health care holdings such as managed care company UnitedHealth Group and health care services company CVS Health Corporation (NYSE:CVS) were also rewarded in the third quarter. CVS, though a marginal contributor, has been weighed down in 2023 by an acquisition deal for Oak Street Health, an increase in medical benefits costs and a decline in the company’s overall Medicare Advantage star rating, but recent operational improvements suggest progress in its transition from a retailer to a diversified health care services company. Oak Street Health is a potential foundational asset for CVS’s retail primary care strategy, and we are positive on the company’s long-term prospects.”

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