Healthcare Stocks to Invest in During Economic Downturns
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 day ago
0mins
Should l Buy CVS?
Source: NASDAQ.COM
- CVS Health's Resilience: With over 9,000 locations across the U.S., CVS Health's diversified healthcare services, including pharmacy, primary care, and health insurance, are expected to maintain stable earnings during economic downturns, despite challenges in cost control within its Medicare Advantage business.
- Attractive Dividend Growth: CVS Health offers a dividend yield of 3.4%, significantly higher than the S&P 500's 1.2%, and has increased its dividend by 56.5% over the past decade, highlighting its appeal amid economic uncertainty.
- Gilead Sciences' Product Portfolio: As a leading biotech firm, Gilead Sciences is renowned for its top HIV medications, and while recent sales growth has been sluggish, its robust pipeline, particularly in oncology, is anticipated to drive future sales growth.
- Strong Dividend Policy: Gilead Sciences boasts a forward dividend yield exceeding 2.3%, with a remarkable 90.7% increase in dividends over the past decade, making it a solid anchor for a diversified portfolio during tough economic times.
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Analyst Views on CVS
Wall Street analysts forecast CVS stock price to rise
17 Analyst Rating
16 Buy
1 Hold
0 Sell
Strong Buy
Current: 76.320
Low
91.00
Averages
96.71
High
105.00
Current: 76.320
Low
91.00
Averages
96.71
High
105.00
About CVS
CVS Health Corporation is a health solutions company. The Company's segments include Health Care Benefits, Health Services, Pharmacy & Consumer Wellness and Corporate/Other. Health Care Benefits segment offers a broad range of traditional, voluntary and consumer-directed health insurance products and related services, including medical, pharmacy, dental and behavioral health plans, PDPs and Medicaid health care management services. Health Services segment provides a full range of pharmacy benefit management (PBM) solutions through its CVS Caremark operations and delivers health care services in its medical clinics, virtually, and in the home. Pharmacy & Consumer Wellness segment dispenses prescriptions in its CVS Pharmacy retail locations and through its infusion operations, provides ancillary pharmacy services including pharmacy patient care programs, diagnostic testing and vaccination administration, and sells a wide assortment of health and wellness products and general merchandise.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Income Fund Excels Thanks to Stocks Like Starbucks, Amgen, and CVS
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- Gardening Joy: She enjoys the process of planting seedlings, nurturing their growth, and harvesting the berries for her morning yogurt.
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DOJ Reaches Settlement with Aetna Over Medicare Advantage Claims
Settlement Announcement: The Department of Justice has reached a $117.7 million settlement with Aetna, the insurance arm of CVS Health.
Allegations: The settlement stems from allegations that Aetna submitted inaccurate and untruthful diagnosis codes to inflate payments from the federal Medicare program.
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- Stock Sensitivity to Oil Shocks: Not all stocks react the same way to fluctuations in oil prices, indicating that some may offer more stability during these market changes.
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CVS Health's Aetna to Pay $117.7M to Settle Medicare Fraud Allegations
- Settlement Amount: CVS Health's Aetna unit has agreed to pay $117.7 million to resolve allegations of submitting false diagnosis codes from 2015 to 2023, reflecting the government's stringent response to its misconduct, which may impact future financial performance.
- Background of Allegations: The Department of Justice accused CVS of submitting inaccurate patient diagnosis data in the Medicare Advantage program to secure higher risk adjustment payments, undermining the integrity of Medicare and potentially subjecting the company to stricter regulatory scrutiny.
- Government Statement: Acting Deputy Inspector General Scott Lampert emphasized that any company attempting to exploit Medicare Advantage will be held accountable, indicating a zero-tolerance policy towards Medicare fraud that could serve as a warning to others in the industry.
- Future Implications: This settlement may lead to increased compliance costs and a potential crisis of trust in the market for CVS, particularly in the Medicare sector, prompting investors to monitor its impact on the company's long-term profitability.
See More
Investment Strategies Amid Recession Predictions
- CVS Health's Market Position: With over 9,000 locations across the U.S., CVS Health's diversified healthcare services, including pharmacy, primary care, and health insurance, are expected to maintain stable earnings during a recession, boasting a market cap of $97 billion.
- Dividend Appeal: CVS Health offers a dividend yield of 3.4%, significantly higher than the S&P 500's 1.2%, and has increased its dividend by 56.5% over the past decade, highlighting its attractiveness amid economic uncertainty.
- Gilead Sciences' Product Portfolio: Known for its leading HIV medications, including Biktarvy and Descovy, Gilead Sciences is expected to see continued demand for its key products even during economic downturns, with a market cap of $184 billion.
- Robust Dividend Policy: Gilead Sciences has a forward dividend yield exceeding 2.3% and has increased its payouts by 90.7% over the past decade, making it a solid anchor in a diversified portfolio during tough economic times.
See More
Income Fund Excels Thanks to Stocks Like Starbucks, Amgen, and CVS
- Hilda Applbaum's Passion: Hilda Applbaum, a resident of Oakland, California, takes great pride in her blueberry bushes.
- Gardening Joy: She enjoys the process of planting seedlings, nurturing their growth, and harvesting the berries for her morning yogurt.
See More
DOJ Reaches Settlement with Aetna Over Medicare Advantage Claims
Settlement Announcement: The Department of Justice has reached a $117.7 million settlement with Aetna, the insurance arm of CVS Health.
Allegations: The settlement stems from allegations that Aetna submitted inaccurate and untruthful diagnosis codes to inflate payments from the federal Medicare program.
See More
"United Health and 8 Additional Dividend Stocks to Weather an Oil Crisis"
- Market Conditions: Crude prices are rising while stock prices are falling, creating uncertainty for investors.
- Investment Strategy: Dividend stocks are suggested as a potential safe haven for investors looking to navigate the current market volatility.
See More
9 Dividend Stocks to Weather an Oil Crisis
- Crude Prices and Market Impact: Crude prices are rising significantly, leading to a decline in stock values, prompting investors to seek safer investment options.
- Stock Sensitivity to Oil Shocks: Not all stocks react the same way to fluctuations in oil prices, indicating that some may offer more stability during these market changes.
See More
CVS Health's Aetna to Pay $117.7M to Settle Medicare Fraud Allegations
- Settlement Amount: CVS Health's Aetna unit has agreed to pay $117.7 million to resolve allegations of submitting false diagnosis codes from 2015 to 2023, reflecting the government's stringent response to its misconduct, which may impact future financial performance.
- Background of Allegations: The Department of Justice accused CVS of submitting inaccurate patient diagnosis data in the Medicare Advantage program to secure higher risk adjustment payments, undermining the integrity of Medicare and potentially subjecting the company to stricter regulatory scrutiny.
- Government Statement: Acting Deputy Inspector General Scott Lampert emphasized that any company attempting to exploit Medicare Advantage will be held accountable, indicating a zero-tolerance policy towards Medicare fraud that could serve as a warning to others in the industry.
- Future Implications: This settlement may lead to increased compliance costs and a potential crisis of trust in the market for CVS, particularly in the Medicare sector, prompting investors to monitor its impact on the company's long-term profitability.
See More
Investment Strategies Amid Recession Predictions
- CVS Health's Market Position: With over 9,000 locations across the U.S., CVS Health's diversified healthcare services, including pharmacy, primary care, and health insurance, are expected to maintain stable earnings during a recession, boasting a market cap of $97 billion.
- Dividend Appeal: CVS Health offers a dividend yield of 3.4%, significantly higher than the S&P 500's 1.2%, and has increased its dividend by 56.5% over the past decade, highlighting its attractiveness amid economic uncertainty.
- Gilead Sciences' Product Portfolio: Known for its leading HIV medications, including Biktarvy and Descovy, Gilead Sciences is expected to see continued demand for its key products even during economic downturns, with a market cap of $184 billion.
- Robust Dividend Policy: Gilead Sciences has a forward dividend yield exceeding 2.3% and has increased its payouts by 90.7% over the past decade, making it a solid anchor in a diversified portfolio during tough economic times.
See More
