CVS Health Corp Shares Strongest Performer In Drug Retail Space
Shares of CVS Health Corp (NYSE: CVS) were the best performing name in the Drug Retailer group Monday, declining about 0.95 percent to close at $80.60.
Traders on the Street are attributing an early-morning Barclays downgrade on Walgreen for some of the weakness in the industry. The firm's Meredith Adler did not mention either CVS or Rite Aid, but did point, broadly, at "the state of the US and global businesses, the impact of rising generic inflation, declines in Medicare Part D reimbursement and profitability..."
CVS shares -- similar to the move in the stock Monday -- have been the far-and-away leader in the Drug Retail space. Over the last three months, CVS Health Corp shares have risen nearly five percent; shares of Walgreen have fallen nearly 20 percent and shares of Rite Aid have been the decided laggard, down nearly 30 percent over the same span.
Investors dabbling in CVS may want to keep an eye on an important technical level at $80. To start September, CVS shares charged through that level, only to test resistance just over $82. Now that the stock has come back down off the 52-week high at $82.57 (set on September 16) and subsequently pushed below $81, the next area of support should be at the psychological $80 level.
Latest Ratings for CVS
|Oct 2016||UBS||Initiates Coverage on||Buy|
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