Chris Wei ‘23 pitched CVS Health (NYSE: CVS) on April 10, 2023. CVS Health is a leading diversified company offering health care and retail pharmacy services. The company sells prescription medications, beauty, personal care, cosmetics, and health care products, as well as pharmacy benefit management (PBM), disease management, and administrative services, with over 9,000 retail locations, more than 1,100 medical clinics. The PBM serves over 110 million plan members.
Chris’s investment thesis focused on the defensive nature of CVS Health and the Health Care industry due to inflation and higher interest rates. The management team has an outstanding vision for growth, both organically and via acquisitions. The company is currently in the process of developing an innovative integrated model of retail pharmacy, PBM, health plans, specialty, and retail clinics, all of which will allow it to become increasingly competitive in an extremely competitive environment. CVS’s stock is currently traded at relatively low multiples and with its stock price relatively low, we see great potential for CVS to move higher. SMIF voted to buy 550 Shares of CVS, funded by the sale of 75 shares of XLV (Health Care Sector ETF) and 100 shares of the Cigna Group (CI).