CVS Health Corp. (CVS) is America’s corner drugstore, with around 9,900 retail locations, observes leading growth and income expert Sean Brodrick, editor of Wealth Megatrends.

Sure, retailers are generally taking it on the chin, as customers shelter at home amid the coronavirus pandemic. And CVS lost some “front of store” business. But it is more than making it up with profits from its Aetna insurance business.

The drug-store chain is playing a big role in COVID-19 testing and potentially will do the same in vaccination when that comes along. CVS administered about 2 million tests into July, with turnaround times averaging three days.

About 17 million Americans get coronavirus tests every month. The government is aiming to increase that monthly rate to about 27 million in the fall. That should be more business for CVS.

The company reported excellent earnings on Aug. 5. Revenue for the second quarter was $65.3 billion, up 3% year-over-year. This result beat the consensus Wall Street revenue estimate of $64.23 billion. CVS Health now projects earnings per share to be between $5.59 and $5.72. That’s up from its previous forecast of $5.47 to $5.60.

So, what’s driving all this? Improved margins, for one. Growth in its insurance memberships for another. And it’s one of the companies doing well from the pandemic. More than 40% of the customers who receive COVID-19 testing at CVS pharmacies were not CVS customers previously. I’m thinking at least some of them will stick around.

CVS is also talking to the federal government about giving COVID-19 vaccinations, just as it did when the H1N1 flu gripped the country. And CVS aims to give up to 18 million flu vaccines this fall. Oh, yeah, flu season is around the corner, another potential profit driver.

More good news: CVS is now offering its services to companies who wish to test their employees. It has 40 large corporate clients, and more will likely sign on. Another potential new source of revenue is that CVS announced a partnership with United Parcel Service Inc. (UPS) about a year ago.

The plan is to put UPS access locations inside CVS stores. Obviously, the pandemic put this on the back burner. But, when it happens, it’s one more way to bring more customers inside the store.

Finally, CVS is riding the “Aging of America” megatrend. As people get older, they need more medicine. That means more people coming into CVS. The company is projected to increase its earnings by 2% this year and 8% next year, with potential to ramp up from there. CVS has also paid a dividend for 23 years.

All this, yet CVS is cheap by many metrics. The stock’s forward price-to-earnings ratio was recently 10.0 compared to a 10-year historical average of 14.6. Price-to-book, what the value of the company would be if you broke it up and sold it for parts, was recently just 1.23. Forward price-to-sales was 0.31.

Now, what are the risks? Well, the Trump administration is pushing to change how Medicare Part D pays rebates to drug makers. Depending on how that plays out, it could negatively impact CVS Health’s pharmacy benefits management business.

CVS also faces increased competition if Amazon (AMZN) decides to start fulfilling prescriptions. But those risks are worth it. And you get paid a nice dividend to wait for the stock to move higher.

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