CVS stock is the top trending search this morning: buy the dip or wait for clearer numbers?
CVS is the number one trending search in the US this morning and the stock has been moving around a lot lately. I hold a small position from earlier this year and I am trying to decide whether to add while it is down or wait for the next earnings report to show whether the pharmacy and insurance sides are actually improving. I am not a trader, I just buy and hold, and I do not want to catch a falling knife. For people who follow the stock: what is the one number or segment you would wait to see before adding more?
1 answer
- Wait for two clean quarters on the benefits side
I would wait for the next earnings report and watch one thing: whether the pharmacy benefit side stops losing money. The stores can look fine while that segment drags everything down, and that is what has burned dip buyers before. If that number improves two quarters in a row, adding makes sense. One good quarter is just noise, in my experience.