During the second quarter, guru Jim Simons (Trades, Portfolio), the founder of the hedge fund Renaissance Technologies, added to his stake in CVS Health Corp. (CVS) by adding an additional 3,647,000 shares of the company to his portfolio. Simons now owns 3,842,105 shares of CVS Health Corp.
Headquartered in Woonsocket, Rhode Island, CVS Health is the largest health care provider in the U.S. The company has more than 9,600 retail drug stores located in 49 states, the District of Columbia, Puerto Rico and Brazil. The company owns more than 1,100 walk-in medical clinics with more than 75 million plan members. Each year CVS Pharmacy serves more than one million patients per year, while filling or managing 1.9 billion prescriptions each year and has captured 39% of the past five-year market prescription growth. CVS Health was also the first national pharmacy chain to remove cigarettes and tobacco products from its store shelves.
CVS Health has a market cap of $99.58 billion, a P/E ratio of 21.57, an enterprise value of $126.79 billion and a P/B ratio of 2.88.
According to GuruFocus, CVS Health has a 5-star predictability rating based on backtesting results. Stocks with a 5-star predictability rating produce, on average, a 12.1% yearly return over a 10-year sample size.
CVS Health has reported excellent financial numbers over the previous decade and it continues to expand its operations globally. The company has an 8 of 10 profitability and growth rating with an ROE of 13.18%, its reported EBITDA growth is 15.10%, and its EPS growth is 15.20%, ranking it above 60% of the 20 companies in the global health care plans industry. The company has also seen excellent revenue per share growth over the previous decade.Â
Simons most likely increased his stake in CVS Health during the second quarter because the company is the largest and most powerful health care provider in the U.S. The company has reported excellent financial numbers over the previous 10 years, it has a 5-star predictability rating, and it has reported excellent revenue per share growth over the previous decade. CVS Health is also continuing to grow and expand its operations globally, which should further increase its differentiation advantage against its competition within the global health care plans industry.
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Disclosure:Â Author does not own any shares of this company.
