CVS Health’s Value Constrained by Politics

Market analysts believe that CVS Health’s (NYSE:CVS) stock price is poised to do well in the event of a Biden victory in November, especially over the long-term. Many believe that CVS is uniquely positioned to transition to managed care. CVS offers the uninsured lower-cost primary care using nurses, physicians’ assistants, and technology. The patent medicines and supplements that are a replacement for primary care with the uninsured are all available at your local CVS. However, despite everything going for it, the stock has fallen 26% over the past two years and hasn’t moved much since. The reason behind this lackluster performance is, not surprisingly, politics. On the one hand, Republicans want to kill the Affordable Care Act, which threatens CVS’ cash flow. On the other, Democrats want Medicare for all, threatening CVS’ cash flow. Only time will tell how CVS Health will fare. Read more here.