A spike in demand for immunity-enhancing drugs and personal protective equipment drove most pharmacy retailers to record sales last year. And because the trend is ongoing, we think U.S.-based pharmacy retail chains CVS Health (NYSE:CVS) and Walgreens Boots Alliance (NASDAQ:WBA) have the potential to continue delivering solid returns as the country battles the latest coronavirus infection wave. But let’s find out which of these two stocks is a better buy now.CVS Health Corporation (CVS) delivers integrated pharmacy health care services in the United States. The company operates through three segments: Pharmacy Services, Retail/LTC and Corporate. As of December 31, 2020, it operated approximately 9,900 retail locations and 1,100 MinuteClinic locations, as well as online retail pharmacy websites LTC Pharmacy and On-Site Pharmacy.
Walgreens Boots Alliance, Inc. (WBA) is a pharmacy-led health and wellbeing company in the United States. The company operates through three segments—Retail Pharmacy USA, Retail Pharmacy International, and Pharmaceutical Wholesale. As of August 31, 2020, WBA operated 9,021 retail stores under the Walgreens and Duane Reade brands, and six specialty pharmacies.
Due to an increased demand for personal protective equipment ( PPE) kits, medical equipment and immunity-boosting drugs during the COVID-19 pandemic, most pharmacy retail companies generated record sales last year. Over the last year, almost all drug stores have made an effort to expand their market reach, make needed equipment available in their stores, provide COVID-19 test facilities, and give safe and efficient services to their customers. And because new variants of coronavirus are being reported in many parts of the country, drug store sales are expected to continue.