CVS Health Hits 11-Year Low; PBM Legislation Could Slash Earnings By 50%, Says Analyst
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CVS Health's stock has hit an 11-year low due to potential legislation targeting pharmacy benefit managers (PBMs), which could reduce its earnings by 50%. This news also negatively impacted UnitedHealth and Cigna stocks.
December 12, 2024 | 7:30 pm
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NEGATIVE IMPACT
Cigna's stock experienced a decline due to potential PBM legislation affecting the healthcare industry.
Cigna, like UnitedHealth, is affected by the potential PBM legislation, which impacts the healthcare sector, resulting in a stock price decline.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 50
NEGATIVE IMPACT
CVS Health's stock has reached an 11-year low due to potential legislation targeting PBMs, which could cut its earnings by 50%.
The potential legislation directly targets CVS's business model involving PBMs, which is a significant part of its earnings. The market has reacted negatively, pushing the stock to an 11-year low.
CONFIDENCE 100
IMPORTANCE 100
RELEVANCE 100
NEGATIVE IMPACT
UnitedHealth's stock fell due to concerns over potential PBM legislation impacting the healthcare sector.
While UnitedHealth is not as directly impacted as CVS, the potential legislation affects the broader healthcare sector, leading to a decline in its stock price.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 50