CVS Health (CVS) operates one of the largest domestic retail pharmacy networks and is a leading pharmacy benefits manager, notes John Buckingham, value-oriented money manager and editor of The Prudent Speculator.

CVS also serves millions of people through traditional, voluntary, and consumer-directed health insurance products and related services (via its Aetna biz).

Shares spiked in the first few weeks of November after another expectation-beating quarter, but gave back some of those gains when Amazon announced a major foray into the pharmacy business with online prescription fulfillment.

Of course, online is nothing new and Amazon (AMZN) still can’t deliver controlled medications, while for the time being, it will take 2 to 4 days to get prescriptions, so people needing to start medications immediately following a doctor visit would still most likely go straight to a brick-and- mortar pharmacy.

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Further, CVS will be actively involved in COVID-19 vaccinations and will continue to transform the way health care is delivered via its walk-in Minute Clinics.

True, the competitive landscape is challenging, the regulatory environment presents questions, and the opioid litigation is ongoing.

Nevertheless, we continue to like that CVS Health is a free-cash-flow generating behemoth with a diversified business model. Shares trade for a very low 10 times next 12 month's adjusted earning estimates and yield 3.0%.

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