10x forward earnings for a large-cap US stock with rapid growth, while comparable large-caps are going for 25x forward earnings. They're close to a monopoly with both horizontal and vertical integration.

What's the catch? I know Amazon is planning on going into the pharmacy business but it's hard to imagine they will outcompete CVS. Mail-order pharmacies have existed for decades without affecting them and I can't see how Amazon can do it any better.

Because sh*t is free at Walgreens.

"cheap"

The market cap is 107 billion dollars

10x forward earnings.

Does that account for the looting that's coming?

Just wait until you find out who created CVS




Spoiler alert: they have ashy palms from all the rubbing

This is why I wouldn't expect them to be cheap though- mail order, physical stores of their own, plus Target.

They might be a little bit over built in some markets.

maybe there is no catch. Maybe you should be buying while others are fearful?

I prefer to understand what I buy.

Here are my rudimentary thoughts on CVS:
1. They're a well established business. They've been around since 1963, and they've been publicly traded since 1984. Older companies like this tend to grow slower and issue larger dividends.
2. The S&P 500 historically has had an average PE ratio of 13 to 15. Newer growth stocks tend to have higher ratios, while older more established stocks tend to have lower ratios. So CVS's PE ratio is right on par with what you would expect for a company that's been around since 1963.
3. They're heavily invested in brick & mortar. That isn't a good thing in an increasingly digital world.
4. You never know what will happen, but it's very possible that their market share will drop as more players get into their market space.

Fundamentals don't matter as much as they used to. I tend to avoid companies that are heavily invested in B&M. I wouldn't invest in CVS unless I felt like they had some sort of edge that would allow them to grow faster than their competition in the coming years.

14 p/e ratio
not innovating chit
cheap?

Not sheriff srs.

CVS is also one of the most corrupt companies on the planet. It's only a matter of time before some politician with a wild hair costs them billions.