Pfizer, BioNTech , and Moderna (NASDAQ:MRNA) have seen their shares rise over the past few months because of their work to develop vaccines against COVID-19. Moderna, which started off the year with a share price of $19.50 has seen its stock climb more than 608% year to date to $138.
CVS Health (NYSE:CVS) is probably not the first company you think of when you think of a “coronavirus” stock, but it will be one in 2021, and unlike Moderna, it’s long been profitable.
What’s coming for CVS?
The pharmacy and health benefits provider will serve as a place where consumers can get their coronavirus vaccine, just as it currently serves those in need of COVID-19 diagnostic testing. Both initiatives will drive additional traffic to the company’s stores.
In its third-quarter earnings call, Larry Merlo, the outgoing CEO and president of CVS, said that 70% of those tested for COVID-19 at its retail locations were not previously CVS customers, and 40% of those tested at business sites in its Return Ready program were not returning CVS customers. Management is confident that some of those people will come back for more typical pharmacy and healthcare-related reasons — and that’s bound to help the company.
On top of that, once the vaccine is distributed more widely and more people are protected against coronavirus infection, CVS pharmacy and retail business will pick up because more people will go back to regular doctor’s visits. That translates to more prescriptions being filled and more crowded brick-and-mortar stores.
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