Barron's On: CVS As The Front Door To Health Care

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  • This weekend's Barron's cover story examines the company aiming to give consumers more power over their health care.
  • Is this the time for investors to jump in or to take a wait and see attitude?
  • Other featured articles discuss trash talk among corporate titans and the president's relationship with the stock market.

This weekend's Barron's cover story, "Can CVS Fix Health Care?" by Jack Hough makes the case that after its recent huge merger, this company is well positioned for a future in which consumers gain more power over their care.

CVS Health Corp CVS has been testing what it calls HealthHUBs, which are newly designed stores that offer an expanded list of health care services and a care concierge, or single contact for customers. So why would anyone visit a CVS and not a doctor's office?

See Also: Barron's Picks And Pans: CVS, Disney, McDonald's, Noble Energy And More

The company's chief executive officer tells Barron's: "We can make care more local, make it simpler, and help people achieve their best outcome at lower cost. We're collecting data, and in the coming months, we're going to have a picture of the path forward."

CVS is expected to discuss its expansion plans for HealthHUB at its June investor day.

The company is already more than just a drug store operator. It's also a pharmacy benefit manager, and last year's acquisition of Aetna greatly expanded its reach into the health care sector. See how CVS now plans to become the new front door of health care.

One analyst mentioned in the article expects investors may face a two-year wait before earnings pick up, and even longer before stock buybacks and dividend increases resume. So why does that analyst see as much as 25 percent upside for the shares this year and rate the stock at Outperform? Find out whether Barron's thinks the risk is already priced into the shares.

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