Walgreen Stock vs CVS Stock - What Happened & Should We Invest in CVS Stock and WBA Stock? | Summary and Q&A

TL;DR

Walgreens and CVS, both retail pharmacy companies, have different strategies and face industry challenges, but both stocks have potential value and may be suitable for a dividend or value portfolio.

Key Insights

• 📌 Walgreens has more retail pharmacy locations than CVS due to recent acquisitions.
• 💗 Walgreens has shown better revenue growth compared to CVS, but CVS may grow faster in the future according to analyst estimates.
• 😀 Both Walgreens and CVS are facing industry challenges related to drug pricing and competition in the pharmacy benefit management space.
• 👾 CVS has an advantage in the pharmacy benefit management space due to its acquisition of Aetna.
• 💦 Both stocks have experienced drops in their stock prices, but may offer value for investors based on calculated fair values.
• ❓ Walgreens and CVS stocks may be suitable for inclusion in dividend or value portfolios.

Transcript

hi I'm Jimmy in this video I'm gonna walk through my analysis of the Walgreens boots Alliance ticker symbol WBA and CVS health ticker symbol CVS this is the 30th video in our series who are analyzing all 30 stocks in the Dow Jones Industrial Average technically this video is supposed to be just for Walgreens but there's a lot of things going on the... Read More

Questions & Answers

Q: Why does Walgreens have more retail pharmacy locations than CVS?

Walgreens recently closed a deal with Rite Aid to acquire nearly 2000 stores, giving them an edge in terms of store locations. CVS has focused on diversifying by acquiring Aetna.

Q: How does the revenue growth of Walgreens compare to CVS?

Walgreens has had a higher compounded annual growth rate of revenue at almost 13% over the past five years, while CVS has seen growth at around 9%. However, analyst estimates suggest CVS may grow at a faster rate in the future.

Q: What challenges are both Walgreens and CVS facing in the industry?

Both companies are facing industry challenges related to drug pricing and increased competition. The pricing of drugs has become a concern as health insurance companies offer more high deductible insurance plans, making prescription drugs more expensive for consumers. Additionally, competition in the pharmacy benefit management space is putting pressure on margins.

Q: How do the stock charts of Walgreens and CVS look?

Both stocks have experienced significant drops in their stock prices over the past year. Walgreens stock is down about 38%, while CVS stock is down about 31%. However, both stocks have dividend yields, with Walgreens at around 3% and CVS at around 3.5%.

Summary & Key Takeaways

• Walgreens has more retail pharmacy locations than CVS due to recent acquisitions, but both companies have different approaches to their businesses.

• Walgreens has shown better revenue growth compared to CVS, but analyst estimates suggest CVS may grow at a faster rate in the future.

• Both companies are facing industry challenges, such as pressure on drug prices and competition in the pharmacy benefit management space, but are taking steps to navigate these issues.