3 Trending Pharmacy Retail Stocks: CVS, Walgreens, Rite Aid

Summary

  • CVS Pharmacy operates over 9,900 retail locations.
  • Walgreens offers same-day delivery with Instacart.
  • Rite Aid operates 2,500 retail pharmacies in the U.S.

Stocks of CVS Health Corp (NYSE: CVS), Walgreens Boots Alliance, Inc. (NASDAQ: WBA) and Rite Aid Corporation (NYSE: RAD) have been trending following reports that Amazon.Com Inc. (NASDAQ:AMZN) is looking to open pharmacy retail locations.

On Wednesday, a media report said Amazon is considering options to open retail locations or use Whole Food stores to sell prescriptions. Amazon entered pharmacy business after it bought online pharmacy Pillpack in 2018.

Here, we explore the business, sales and stocks of the three major U.S. pharmacy chains.

CVS Health Corp

The Rhode Island-based company’s CVS Pharmacy is the largest pharmacy chain in the U.S., with over 9,900 retail stores. CVS Health’s subsidiaries are CVS Caremark and health insurance firm Aetna.

CVS Health recently posted a 3.5 percent year-over-year revenue growth in its March quarter to US$69.10 billion. Revenue in the pharmacy services unit increased 3.8 percent, while revenue rose 2.3 percent in the retail and long-term care segment.

CVS Health has a market capitalization of US$113.83 billion. The stock gained approximately 25 percent this year and 33 percent in the one-year period.

READ MORE: Why CVS Health (NYSE: CVS) Is On Investors’ Radar This Week?

Walgreens Boots Alliance, Inc

Walgreens is a retail and wholesale pharmacy based in Illinois. The company operates more than 9,000 retail stores and six specialty pharmacies in the U.S., while its international division operates 4,428 retail stores.

In the fiscal second quarter ended Feb. 28, the company recorded US$32.78 billion in sales, up 4.6 percent year over year.

Walgreens, which offers same-day delivery with Instacart, noted that its digitally initiated retail sales jumped 78 percent during the period.

The company’s stock is up 32 percent year to date while it grew around 24 percent in the last one year.

Source: Pixabay

Rite Aid Corporation

Rite Aid operates 2,500 retail pharmacies across 17 states in the U.S and provides pharmacy benefits through its Elixir.

The company recorded US$5.92 billion in consolidated revenue from its continuing operations during the fiscal fourth quarter ended Feb. 27. Retail pharmacy segment revenues totaled US$4.11 billion, up 3 percent year over year.

In the full fiscal 2021 revenue came in at US$24.04 billion. Retail pharmacy segment revenue was US$16.37 billion, 4.8 percent.

Rite Aid stock gained 16 percent year to date while it surged 40 percent in the one-year period.

READ MORE: 5 Food Stocks To Explore As COVID-19 Restrictions Ease

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