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CVS: Why I'm Selling My Worst Holding Of 2024

The article on Seeking Alpha discusses the author's decision to sell their shares in CVS Health Corporation, labeling it as their worst holding of 2024. The author highlights several reasons for this decision: CVS has experienced a significant decline in stock value, dropping over 25% in the past year. Despite CVS's efforts to diversify through acquisitions like Aetna and Signify Health, the company faces challenges including high debt levels, increased competition in the pharmacy and health insurance sectors, and regulatory pressures. The author also points out CVS's struggles with profitability, with earnings per share decreasing and the company's forward-looking statements not instilling confidence. Additionally, the pharmacy benefit management (PBM) business, which CVS heavily relies on, is under scrutiny for its pricing practices, potentially leading to regulatory changes that could further impact CVS negatively. The combination of these factors led the author to conclude that CVS's risk-reward profile is unfavorable, prompting the sale of their shares.

Read the Full Seeking Alpha Article at:
[ https://seekingalpha.com/article/4743691-cvs-why-im-selling-my-worst-holding-of-2024 ]