CVS Health - CVS Health experienced a rebound in 2025, with improved financial results and raised guidance for revenue, operating income, and earnings per share for 2026 [3][4] - The company is addressing challenges such as rising costs and shrinking operating margins, particularly in its Medicare Advantage business, by significantly rolling back this segment to focus on profitable growth [4][5] - CVS Health is currently trading at 11.2 times forward earnings, which is below the healthcare sector average of 18.4, indicating reasonable valuation [5] - The company has a vast network of pharmacies and diversified healthcare operations, which provide significant advantages as healthcare spending increases [6] - CVS Health has adapted to competition, notably from Amazon, by offering free and fast delivery services for prescription medications, making it a strong long-term investment [7] - The outlook for CVS Health in 2026 and beyond appears promising, especially for dividend-seeking investors [8] Amgen - Amgen is developing new drug products to address a recent patent cliff, positioning itself for future growth [8]
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