The retail sector in general, and the drugstore sector in particular. Never mind that the Net story in the drug sector is substantially different than that in, say, toys, or that Rite Aid's problems are widely perceived to stem from internal management mistakes. Even after the market figures out the economics of Internet drugstores, CVS will still have to live down the Rite Aid debacle. Naysayers should know, however, that CVS made a success of its acquistion of East coast drug chain Revco three years ago and of this year's purchase of Detroit-based chain Arbor Drugs. Signs are that such growth will continue.
Analysts also like the way CVS management runs the company.
They are definitely guiding the company in the right direction. It's undervalued by a lot. But don't look for a big bump until the market starts focusing on fundamentals and stops praying over dice. Drop Sam a line or join in an ongoing discussion now. Choose a category Chart Adv.