CVS attempting rising wedge breakout
CVS has been testing the upper trend line of its rising wedge, which it has breached a couple times in the last two days. The last three days have also seen heavy call option buying activity. CVS has a very bullish 9.4/10 Equity StarMine rating, and it's rated as extremely undervalued by S&P Capital IQ.
Investors are betting, in part, that CVS will benefit from the bankruptcy of Fred's, a major competitor. CVS is also now going to be selling a CBD (cannabis) product from SocialCBD. Plus, CVS has big plans to open 50 HealthHUB stores, low-cost clinics that will leverage artificial intelligence as a diagnostic tool. This could help disrupt the cost bubble in the healthcare industry.
I don't know that the rising wedge will necessarily break today, but I do think that CVS should see continued strength in the coming year. This is a good long-term buy and hold.
Investors are betting, in part, that CVS will benefit from the bankruptcy of Fred's, a major competitor. CVS is also now going to be selling a CBD (cannabis) product from SocialCBD. Plus, CVS has big plans to open 50 HealthHUB stores, low-cost clinics that will leverage artificial intelligence as a diagnostic tool. This could help disrupt the cost bubble in the healthcare industry.
I don't know that the rising wedge will necessarily break today, but I do think that CVS should see continued strength in the coming year. This is a good long-term buy and hold.
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