CVS Facing Down Several Headwinds That Could Constrain Near-Term Growth

CVS aims to be the most customer-centric health company in the United States and has spent over a decade positioning itself as a leader in healthcare services, with the acquisitions of pharmacy benefit manager Caremark (2007), insurance provider Aetna (2018), and provider Oak Street (pending in 2023) defining its strategic direction. CVS' top-tier retail pharmacy, health insurer, and PBM franchises create the potential to improve health outcomes and even bend the healthcare cost curve for its clients, especially if it can align incentives by owning healthcare service providers, as well.