CVS could be your next eBay

Article Excerpt

CVS HEALTH CORP. $73 is okay to hold. Through the stock (New York symbol CVS; Consumer sector; Shares outstanding: 1.3 billion; Market cap: $94.9 billion; Divd. yield: 2.7%; Takeover Target Rating: Low; www.cvshealth.com), you gain exposure to over 9,900 drugstores in the U.S. CVS’s shares have gained just 2% in the past year. That’s due to concerns about the company’s 2018 acquisition of health insurance provider Aetna for roughly $70 billion in cash and shares. However, investors have seen their shares move up lately on news that activist investment firm Starboard Value has acquired a small, undisclosed stake in the company. It’s likely that Starboard will push CVS to sell some of its smaller businesses, and push up its stock price, and your gains. It did the same thing for eBay investors. investors…