Stock Research Report for CVS as of 2/29/12 - Chaikin Power Tools

Page 1

Cvs Caremark Cp (CVS)

Price: $44.91

Industry: Food/Drug-Retail/Wholesale Chaikin Power Gauge Report | Generated: Wed Feb 29 11:40 EST 2012 Power Gauge Rating

CVS - Bullish TM

The Chaikin Power Gauge Rating for CVS is bullish due to very positive expert opinions. The rating also reflects poor financial metrics. Expert opinions about CVS are very positive which is evidenced by analysts revising earnings estimates upward and a very low short interest ratio.

News Sentiment Rating

Bearish CVS Cvs Caremark ..

February 24, 2012

TM

Chaikin Sentiment Gauge for CVS is bearish. There is currently a significant negative sentiment within news stories concerning CVS.

News Sentiment :Negative

Power Trend - 5 Year Chart

The Power Gauge distills a 20 factor model into a concise picture of a stock's potential.

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High Potential

Neutral

Low Potential

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Financials & Earnings

Financial Metrics Rating

Financial Metrics

Bearish

LT Debt/Equity Ratio

CVS's financial metrics are poor. The company has relatively low revenue per share and generates relatively low free cash flow relative to market capitalization.

Price to Book Value

The rank is based on a low price to book value, high price to sales ratio and relatively low cash flow.

Return on Equity

Price to Sales Ratio

Business Value

Assets and Liabilities

Valuation

Returns

Ratio

TTM

Ratio

TTM

Ratio

TTM

Current Ratio

1.56

Price/Book

1.54

Return on Invest

7.9%

LT Debt/Equity

0.24

Price/Sales

0.55

Return on Equity

9.9%

Earnings Performance

Earnings Performance Rating

Neutral

Earnings Growth

CVS's earnings performance has been neutral. The company has a stable 5 year earnings trend and has not met analysts' earnings estimates.

Earnings Surprise

The rank is based on worse than expected earnings in recent quarters, a relatively poor trend in earnings this year, a relatively high projected P/E ratio and consistent earnings over the past 5 years.

Earnings Trend

Projected P/E Ratio

Earnings Consistency

5 Year Revenue and Earnings Growth

Revenue(M) Rev % Growth EPS EPS % Growth

EPS Estimates

12/07

12/08

12/09

12/10

12/11

76,329.50

87,471.90

98,729.00

96,413.00

107,100.00

74.21%

14.60%

12.87%

-2.35%

11.08%

$1.98

$2.23

$2.58

$2.51

$2.59

20.00%

12.63%

15.70%

-2.71%

3.19%

EPS Surprise

Factor

Actual EPS Prev

EST EPS Current

Change

$0.52

$0.63

+0.11

Quarterly EPS Yearly EPS Factor

$2.59

$3.27

+0.68

Actual EPS Growth

Est EPS Growth

Change

22.08%

11.83%

-10.25

3-5 year EPS

EPS Quarterly Results Estimate

Actual

Difference

% Difference

FY

Qtr 1

Qtr 2

Qtr 3

Qtr 4

Total

Latest Qtr

$0.89

$0.89

$0.00

1 Qtr Ago

$0.67

$0.70

$0.03

0.00

12/09

$0.51

$0.61

$0.71

$0.75

$2.58

4.48

12/10

$0.56

$0.61

$0.59

$0.75

$2.51

2 Qtr Ago

$0.64

$0.65

3 Qtr Ago

$0.55

$0.57

$0.01

1.56

12/11

$0.52

$0.60

$0.65

$0.82

$2.59

$0.02

3.64

Fiscal Year End Month is December.

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Price Trend & Expert Opinions Price/Volume Activity

Price/Volume Activity Rating

Neutral

Relative Strength vs Market

Price and volume activity for CVS is neutral. CVS has outperformed the S&P 500 over 26 weeks and is in a decelerating price trend compared to 4 months ago.

Chaikin Money Flow

Price Trend

The rank for CVS is based on its price strength versus the market, positive Chaikin money flow, a positive Chaikin price trend, a negative Chaikin price trend ROC and a decreasing volume trend.

Price Trend ROC

Volume Trend

Relative Strength vs S&P500 Index

Chaikin Money Flow

Chart shows whether CVS is performing better or worse than the market.

Chaikin Money Flow analyzes supply and demand for a company's stock.

Price Activity

Price Activity

Factor

Value

Factor

52 Week High

44.91

52 Week Low

32.06

% Change YTD Rel S&P 500

-0.49%

Expert Opinions

Volume Activity Value

Factor

% Change Price - 4 Weeks

7.57%

Average Volume 20 Days

7,497,414

% Change Price - 24 Weeks

22.84%

Average Volume 90 Days

8,965,552

% Change Price - 4 Wks Rel to S&P

2.88%

% Change Price - 24 Wks Rel to S&P

5.00%

Value

Chaikin Money Flow Persistency

66%

Expert Opinions

Very Bullish

Earnings Estimate Revisions

Expert opinions about CVS are very positive. Analysts are raising their EPS estimates for CVS and shorting of CVS is low.

Short Interest

Insider Activity

The rank for CVS is based on analysts revising earnings estimates upward, a low short interest ratio, insiders purchasing stock and optimistic analyst opinions.

Analyst Opinions

Relative Strength vs Industry

Earnings Estimate Revisions Current Current Qtr Next Qtr

0.63 0.74 Current

Current FY

3.27

Analyst Recommendations

7 Days Ago % Change 0.63 0.74

0.00% 0.00%

30 Days Ago % Change 3.25

0.02

EPS Estimates Revision Summary

Factor Mean this Week Mean Last Week

Value

Strong Buy 0.00

Last 4 Weeks

Down

Up

Down

Curr Qtr

0

0

9

0

Curr Yr

1

0

12

1

Next Qtr

0

0

4

1

Next Yr

0

0

7

0

Strong Buy

Change Mean 5 Weeks Ago

Last Week Up

Strong Buy

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The Company & Its Competitors

News Headlines for CVS

CVS's Competitors in Food/Drug-Retail/Wholesale Company

Power Gauge

Historic EPS growth

Projected EPS growth

Profit Margin

PEG

PE

Revenue(M)

CVS

22.08%

11.83%

3.22%

1.16

15.98

107,100

MCK

4.98%

14.25%

1.09%

0.91

13.84

112,084

HLF

13.25%

14.00%

11.93%

1.33

20.14

3,455

RAD

8.85%

-

-1.62%

-

-

25,215

WAG

8.80%

12.01%

3.68%

1.05

12.61

72,184

ABC

5.59%

13.00%

0.88%

1.03

14.50

80,218

CAH

4.81%

12.82%

0.89%

1.03

14.62

102,644

PMC

16.86%

17.00%

1.12%

0.62

10.06

2,081

PuraMed BioScience@, Inc. Reports Increased Revenue From Sales of LipiGesic@ M, Its Flagship Migraine Pain Relief Product - Feb 15, 2012 CVS Caremark 4Q profit climbs nearly 4 percent - Feb 8, 2012 Sector Snap: Pharmacy benefits and drugstores - Feb 7, 2012 CVS/pharmacy Launches Enhanced "Send to Card" Digital Options for Redeeming ExtraBucksŽ Rewards - Jan 16, 2012 CVS Caremark Corporation Settles FTC Deceptive Pricing Charges - Jan 12, 2012

Company Details

Company Profile

Cvs Caremark Cp ONE CVS DR. WOONSOCKET, RI 02895 USA Phone: 4017651500 Fax: 401-762-2137 Website: http://http://www.info.cvscaremark.c om Full Time Employees: 202,000 Sector: Retail/Wholesale

CVS/Caremark is the nation's premier integrated pharmacy services provider, combining one of the nation's leading pharmaceutical services companies with the country's largest pharmacy chain. The company fills or manages more than one billion prescriptions per year, more than any other pharmacy services provider. CVS/Caremark drives value for pharmacy services customers by effectively managing pharmaceutical costs and improving healthcare outcomes through its six thousand two hundred CVS/pharmacy stores; its pharmacy benefit management, mail order and specialty pharmacy division, Caremark Pharmacy Services; its retail-based health clinic subsidiary, MinuteClinic; and its online pharmacy, CVS.com.

Power Gauge Ratings are created using a relative ranking system that assigns a rank of 0 to 100 (100 being the highest) to each stock in the universe. Rank is calculated by evaluating each of the stocks factors and combining them into a single number using a weighting formula. A stock's rank ranges from 100-0, where 100 is the strongest, and a rank of 95 indicates the stock is better than 95% of the stocks in the universe. Chaikin Stock Research(CSR) is not registered as a securities broker dealer or investment advisor with either the U.S. Securities and Exchange Commission or with any state securities regulatory authority. CSR is not responsible for trades executed by users of this research report, our web site or mobile app based on the information included herein. The information presented in this report does not represent a recommendation to buy or sell stocks or any financial instrument nor is it intended as an endorsement of any security or investment. The information in this report is generic by nature and is not personalized to the specific financial situation of any individual. The user bears complete responsibility for their own investment research and should seek the advice of a qualified investment professional before making any investment decisions. Copyright (c) 1978-(Present) by ZACKS Investment Research, Inc ("ZACKS"). The information, data, analyses and opinions contained herein (1) includes the confidential and proprietary information of ZACKS, (2) may not be copied or redistributed, for any purpose, (3) does not constitute investment advice offered by ZACKS, (4) are provided solely for informational purposes, and (5) are not warranted or represented to be correct, complete, accurate or timely. ZACKS shall not be responsible for investment decisions, damages or other losses resulting from, or related to, use of this information, data, analyses or opinions. Past performance is no guarantee of future performance. ZACKS is not affiliated with Chaikin Power Tools. This report from Chaikin Power Tools is for informational purposes only and is not a recommendation to buy or sell securities.

LM 2.3 DS 3.0 LS 2.1

Data Provided by ZACKS Investment Research, Inc., www.zacks.com

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