CVS Health (NYSE:CVS) has had a great fourth quarter of 2014, beating the market expectations and earning the investor’s respect. In a turbulent health market, CVS Health (NYSE:CVS)held its ground and made positive earnings amidst speculations and presumptions regarding the company’s stock plunging in near future. But that hasn’t been the case. CVS Health (NYSE:CVS) has emerged as a winner. CVS Health (NYSE:CVS) made $2.9 billion in the fourth quarter of 2014 and that added to the total year earnings, making it $6.5 billion. For a pharmacy retailer to earn that much is commendable.
CVS Health (NYSE:CVS) has been raging because of the specialty drugs, thanks to high end pharmaceutical companies like Gilead Sciences (NASDAQ:GILD) and its Hepatitis C drugs which are highly in demand. The sales made off of those drugs contributed to a chunk of CVS Health (NYSE:CVS)’s fourth quarter earnings. Here we mustn’t forget that it hasn’t just been the specialty drugs but the normal every-day drugs were also in demand and CVS Health (NYSE:CVS) made a fortune off of that, making billions in one year, which is unlikely for a pharmaceutical company.
CVS Health (NYSE:CVS) decision to take the no tobacco road must have been hard on the finances but not too hard. In fact, in public the decision was applauded and the sales have been stable, unlike what the analysts were predicting. It was forecasted that dropping tobacco off of its products will hurt the sales of the company. The sales have lowered down but only by a small margin which will be easily compensated in the coming times. The drugs being rolled out by large end companies, especially the specialty drugs, will land in CVS Health (NYSE:CVS). The more a company manufactures drugs, the more profit CVS Health (NYSE:CVS) can expect.
The management of the company has said that their guidance for 2015 looks extremely positive and now would be the ideal time for investors to come on board and get healthy returns, because you never know what goes on in the health sector and a stock soaring today might be beneath the ground tomorrow. In any case, CVS Health (NYSE:CVS) is a healthy buy and as an investor, the stock should definitely interest you.
Another great thing about CVS Health (NYSE:CVS) is that it has been making billions while the market was writing it off and investing against it. The company proved everyone wrong and came out with a profit of billions and now the investors are coming onboard one by one. It’s a good sign for the retailer because investors will help the company in dire situations that are bound to come in the health market.
One must realize that the turbulent health market isn’t a guaranteed option ever. If the pharmaceutical companies don’t do business, CVS Health (NYSE:CVS) won’t do business either because there will be no drugs to sell. So let’s hope the healthcare industry remains stable so CVS Health (NYSE:CVS) remains stable as well.
