CVS Health (CVS) Has Fallen 3% in Last One Year, Underperforms Market

If you are looking for the best ideas for your portfolio you may want to consider some of Miller Value Partners top stock picks. Miller Value Partners, an investment management firm, is bullish on CVS Health Corp (NYSE:CVS) stock. In its Opportunity Equity Q2 2019 investor letter – you can download a copy here – the firm discussed its investment thesis on CVS Health Corp (NYSE:CVS) stock. CVS Health Corp (NYSE:CVS) is a healthcare company.

On July 22, 2019, Miller Value Partners had released its Opportunity Equity Q2 2019 investor letter. The investment firm said that it bought CVS Health Corp (NYSE:CVS) stock in Q2 2019. CVS Health Corp (NYSE:CVS) stock has posted a return of -3.2% in the trailing one year period, underperforming fund’s benchmark the S&P 500 Index which returned 15.1% in the same period. This suggests that the investment firm was wrong in its decision. On a year-to-date basis, CVS Health Corp (NYSE:CVS) stock has fallen by 18.9%.

Miller Value Partners Opportunity Equity Fund posted a return of 1.15% in the second quarter of 2019, underperforming fund’s benchmark the S&P 500 Index which returned 4.3% in the same period. Let’s take a look at comments made by Miller Value Partners about CVS Health Corp (NYSE:CVS) stock in the Q2 2019 investor letter.

“After acquiring Aetna, CVS fell from a high last year of $82 to a low of $52 in the quarter. It currently trades around $57, or 8x this year’s earnings with a nice 3.5% dividend yield. The valuation is less than other pharmacies like Walgreen’s Boots, which trades at 9x and other health plans like United (18x), Anthem (16x) and Cigna (11x). The strategy around “Health Hubs” that expands on CVS’s Minute Clinic to offer other health services, such as dieticians, to improve health for customers could help drive down health care costs and provide upside to the stock.”


In Q2 2020, the number of bullish hedge fund positions on CVS Health Corp (NYSE:CVS) stock decreased by about 8% from the previous quarter (see the chart here), so a number of other hedge fund managers don’t seem to agree with CVS’s growth potential. Our calculations showed that CVS Health Corp (NYSE:CVS) isn’t ranked among the 30 most popular stocks among hedge funds.

The top 10 stocks among hedge funds returned 185% since the end of 2014 and outperformed the S&P 500 Index ETFs by more than 109 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds’ poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Below you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.

Video: Top 5 Stocks Among Hedge Funds

At Insider Monkey we scour multiple sources to uncover the next great investment idea. For example, legal marijuana is one of the fastest growing industries right now, so we are checking out stock pitches like “the Starbucks of cannabis” to identify the next tenbagger. We go through lists like the 10 most profitable companies in the world to pick the best large-cap stocks to buy. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. Hedge fund sentiment towards Tesla reached its all time high at the end of 2019 and Tesla shares more than tripled this year. We are trying to identify other EV revolution winners, so if you have any good ideas send us an email. You can subscribe to our free enewsletter below to receive our stories in your inbox:

Disclosure: None. This article is originally published at Insider Monkey.