September 22, 2014
Health care is one area where expenditures grow, rather than decline, with age. And while higher health care spending isn’t a good thing, and it would be great to see per capita health care spending diminish, you can’t argue with demographics.
One implication is that while most retailers increasingly will struggle, those geared toward health care could benefit. That’s why this month’s Spotlight stock is Growth Portfolio’s CVS Caremark (CVS), one of the few companies positioned to profit simultaneously from both the rise in health care spending and the compelling need to cut per capita health care expenditures.
CVS is the nation’s leader in two major health-related industries, drugstores and pharmacy benefit management (PBM). While its drugstores sell a wide variety of items, health care products are an important part of the mix. And as the leading PBM, the company plays a major role in controlling health care costs. Together, these two divisions make CVS the country’s largest diversified provider of health care services. Read More »