CVS Health (CVS) Releases Encouraging Flu Shot Survey Data

CVS Health (NYSE:CVS) released interesting data indicating substantial potential in the flu vaccination market of the United States. Data confirmed that about 61% of the American population is either taking or planning to take a flu vaccination every year. Moreover, data also revealed a 2% rise in the flu vaccination taking population compared to the previous year’s survey results.

Interestingly, CVS Pharmacy and MinuteClinic locations across the United States recently began offering flu vaccinations. Notably, CVS Health’s Pharmacy Services witnessed a 9.5% rise in the last reported second-quarter 2017. Also, revenues at MinuteClinic rose 8% year over year. We believe that the affirmative survey data will help the company gain traction in this space.

Also, the survey’s findings indicate a 7% rise in employed flu vaccine receivers that prefer to get vaccinated at their workplace in partnership with local pharmacy or drugstore.

Notably, the company has been on track to fortify its footprint in the market place. In August 2017, CVS Health and Cigna Corp. (NYSE:CI) announced the launch of Cigna Health Works. Per the collaboration, leveraged on CVS Pharmacy and CVS MinuteClinic, retail health care services will be available for Cigna self-funded employer-sponsored health plans.

Also, in July 2017, MinuteClinic partneredwith Alere eScreen Occupational Health Network whereby employees can visit MinuteClinic for a wide range of services required by employers including biometric screenings and vaccinations. Thus we believe the positive survey data further amplifies the importance of these strategic partnerships.

Per a report by ReportsnReports, the Global Influenza Drugs and Vaccines market is projected to witness a CAGR of 10.2% over the 2017-2022 period. Thus, favorable survey findings further indicate the array of untapped opportunities available within this space.

We believe an aging population, unhealthy lifestyle and rising awareness and expenditure in healthcare will continue to drive growth in the vaccinations market. However, this market is dominated by well established player like Emergent BioSolutions Inc. (NYSE:EBS) .

Moreover, CVS Health has been gaining investor confidence on consistent positive results. Over the past three months, the company’s share price has outperformed the broader industry. The stock has gained 1.7% as against the broader industry’s decline of 1.8%. The company has also outperformed the 1.2% gain of the S&P 500 market over the same time frame.

Zacks Rank & Key Pick

CVS Health currently carries a Zacks Rank #3 (Hold). A better-ranked medical stock is Edwards Lifesciences Corp. (NYSE:EW) , with a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Edwards Lifesciences has a long-term expected earnings growth rate of 15.2%. The stock has gained around 22.7% over the last six months

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