Each of the stocks received a buy rating from TheStreet Ratings.
The drugstore chain may be considering a bid for Cigna's (CI) pharmacy benefit management division, according to Bloomberg, which cited Leerink Swann analyst David Larsen.Shares of CVS Caremark hit a 52-week high on Friday of $45.54. The stock's 52-week low of $31.30 was set on Aug. 9. CVS Caremark has an estimated price-to-earnings ratio for next year of 12.34; the average for drug retailers is 12.32. For comparison, Walgreen (WAG) has a lower forward P/E of 11.44. Twenty-two of the 26 analysts who cover CVS Caremark rated it buy. Three analysts gave the stock a hold rating and one rated it sell. TheStreet Ratings gives CVS Caremark an A+ grade with a buy rating and a $58.18 price target. The stock has risen 11.67% year to date.