Top 5 Stock Picks of Mika Toikka’s AlphaCrest Capital

3. CVS Health Corporation (NYSE:CVS)

AlphaCrest Capital’s Stake Value: $15.852 million

Number of Hedge Fund Holders: 72

CVS Health Corporation (NYSE:CVS) is one of the biggest healthcare companies in the United States, with 2021 sales of more than $292.1 billion, and it one of the top stock picks of Mika Toikka’s AlphaCrest Capital. Even during the pandemic, CVS Health Corporation (NYSE:CVS) continued to grow its business.

CVS Health Corporation (NYSE:CVS) was mentioned in Madison Fund’s Q4 2021 investor letter. Here is what it said:

“This quarter we are highlighting CVS Health (CVS) as a relative yield example in the Health Care sector. CVS is a vertically integrated health care focused company with leading pharmacy, pharmacy benefits manager (PBM) and managed care businesses. It has more than 10,000 retail pharmacies, along with strong franchises that were acquired in recent years including Caremark, which is the largest PBM in the US that processes over 2 billion adjusted claims annually, and Aetna with 24 million health insurance members. We believe its retail pharmacy network, along with its size and scope in the PBM and managed care businesses provide sustainable competitive advantages.

Our thesis on CVS is that its vertically integrated business model will successfully reduce health care costs for its clients while also accelerating long-term earnings growth. CVS management believes that when retail customers use both CVS pharmacy benefits and medical insurance, their medical costs decline 3-6% over a three-year period by reducing hospitalizations and emergency room visits. This cost savings should help retain and grow clients while lowering health care costs.”