Yahoo Finance

In this edition, we assess exposure of some consumer finance banks; Compass Minerals puts its dividend on ice; Humana's stock pitch shows a rare opportunity; and Enel SpA, Warner Bros. Discovery, and Puma.

Humana is one of the largest private health insurers in the US with a focus on administering Medicare Advantage plans. The firm has built a niche specializing in government-sponsored programs, with nearly all its medical membership stemming from individual and group Medicare Advantage, Medicaid, and the military's Tricare program. The firm is also a leader in stand-alone prescription drug plans for seniors enrolled in traditional fee-for-service Medicare. Beyond medical insurance, the company provides other healthcare services, including primary-care services, at-home services, and pharmacy benefit management.

CVS Health offers a diverse set of healthcare services. Its roots are in its retail pharmacy operations, where it operates over 9,000 stores primarily in the US. CVS is also a large pharmacy benefit manager (acquired through Caremark), processing about 2 billion adjusted claims annually. It also operates a top-tier health insurer (acquired through Aetna) where it serves about 26 million medical members. The company's recent acquisition of Oak Street adds primary care services to the mix, which could have significant synergies with all its existing business lines.

CVS Health Corp. operated 9,400 retail drugstores at the end of 2023, including over 1,880 locations in Target stores. The total number of locations is approximately 10,000 when we include a leading specialty pharmacy, Long Term Care pharmacies, primary care centers and Infusion Centers where cancer medicines, for example, are delivered through a needle. The combined company posted 2023 revenue of $358 billion, with $187 billion in Health Services (which includes the PBM business), $117 billion in Pharmacy & Consumer Wellness (which includes the retail drug stores), and $106 billion in Health Care Benefits. Revenues exceed the total before elimination of transactions between segments which totaled approximately $52 billion. Aetna, was acquired at the end of 2018. CVS operated more than 1,100 Minute Clinics, primarily within CVS pharmacy stores. The corporate headquarters is in Woonsocket, Rhode Island.