Pharmacy retailer-cum-benefits manager CVS Caremark
CVS steps it up
CVS's revenues have improved as a result of its long-term contract with Aetna
CVS has tried to boost flagging front-end sales by opening new stores, which should add to the top line. In addition to recently opening 41 new stores, taking its total store count up to 7,266, it also recently entered a deal to provide mail-order pharmacy services to more than 5 million U.S. federal employees, retirees, and dependents.
Is the price right?
Let's see how the company is valued compared with its industry peers.
Sources: Yahoo! Finance and Capital IQ, a division of Standard & Poor's.
* Negative earnings/and or free cash flow.
Looking at the P/E and enterprise-value-to-free-cash-flow ratio (TEV/FCF), we see that CVS is valued more-or-less in line Walgreen. The gap between its current and forward P/E means that analysts expect a lot of growth from the company over the coming year. But with Express Scripts
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Fool contributor Shubh Datta doesn't own any shares of the companies mentioned here. Motley Fool newsletter services have recommended buying shares of MedcoHealth Solutions. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.