CVS Health (CVS) in Dodge & Cox Global Stock Fund's Semiannual 2024 Commentary 2024 Q2

Expanding Health Services Amidst Margin Pressures

Apr 15, 2025

Summary

Significant revenue from health insurance and PBM businesses.
Facing margin pressures in Medicare Advantage plans.
Regulatory risks in PBM business present challenges.
Increased position due to compelling valuation.

In the Dodge & Cox Global Stock Fund's Semiannual 2024 Commentary 2024 Q2, CVS Health (CVS, Financial) was discussed as a key holding facing current margin pressures. The company, known for its retail pharmacy, also derives significant revenue from its health insurance and Pharmacy Benefit Manager (PBM) businesses. Despite challenges, including higher medical loss ratios in its Medicare Advantage plans and regulatory risks, the fund increased its position in CVS Health, citing an attractive valuation.

"These risks created an attractive opportunity to increase the Fund’s position in this leading diversified health care services company at a compelling valuation." — Dodge & Cox Global Stock Fund, Semiannual 2024 Commentary

Read full letter at gurufocus Dodge & Cox Global Stock Fund's Semiannual 2024 Commentary 2024 Q2 page.

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