Should You Buy CVS Health Stock Before Feb. 12?

Core Viewpoint - CVS Health is a significant player in the healthcare sector, combining pharmacy retail, pharmacy benefits management, and health insurance services through its acquisition of Aetna in 2018 [1] Group 1: Stock Performance and Valuation - Despite its strong position in the healthcare industry, CVS stock has lost nearly 50% of its value over the past three years [2] - The current low valuation may prompt investors to consider whether it is an opportune time to invest, especially ahead of the year-end earnings report scheduled for February 12 [3] Group 2: Earnings and Management Changes - CVS has underperformed in recent quarters, consistently missing analyst expectations and lowering its guidance multiple times [5] - The new CEO, David Joyner, took over in October, and the upcoming earnings report will be the first full quarter under his leadership, making it crucial for investors to assess his long-term strategy [7] Group 3: Strategic Considerations - Investors should focus on the CEO's vision and potential strategic changes, such as reducing the dividend, store count, or selling assets to create a leaner operating model [8] - CVS reported sales of nearly $370 billion over the past four quarters, but profits were just over$5 billion, indicating a need for significant operational improvements [8] Group 4: Investment Approach - Given the current uncertainties surrounding CVS, it is advised that investors adopt a wait-and-see approach rather than rushing to buy shares before the earnings report [10][11]