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Which Drugstore Chain Stock is a Better Buy? -Breaking

by Mike Robinson

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© Reuters. CVS Health and Rite Aid: Which drugstore chain stock is better?

The likelihood of drugstores seeing an increase in sales as COVID-19 cases rises again is high. CVS Health (NYSE 🙂 and Rite Aid(NYSE 🙂 could both benefit. Which stock is better to buy right now? You can read more about CVS Health Corporation. It provides United States health services. The company operates in three main segments, Pharmacy Services; Retail/LTC and Health Care Benefits. It operates around 9,900 retail stores and 1100 MinuteClinic clinics. Rite Aid Corporation, (RAD), operates a chain retail drugstores. The company operates in two distinct segments: Retail Pharmacy and Pharmacy Services. There are approximately 2,500 locations of retail pharmacy in 17 US states.

The drugstore sector is likely to see a rise in demand due to the rising incidence of COVID-19 and growing concerns about the transmissible Omicron Coronavirus variant. Due to the high demand for drugs, this industry tends to be a stable performer. Research and Markets predicts that the world’s pharmaceuticals market will grow by 8% between 2021 and 2025, according to their report. Both CVS as well as RAD will benefit.

CVS gained 18% in the last three months while RAD saw negative returns. Also, CVS’ 36% gains over the past nine months are significantly higher than RAD’s negative returns. Moreover, CVS is the clear winner with 44.7% gains versus RAD’s negative returns in terms of year-to-date performance.

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