11-08-2016, 09:58 AM
Missed the open due to long lines at the poll, so I missed the bottom, but added to my CVS at $72.90 a few minutes ago.
The guidance for 2017 wasn't great but I don't see it as being a disaster. Flat growth year over year but management is still guiding for 10% annual growth long term.
Even using a pessimistic 6% EPS growth and 8% dividend growth over the next 5 years and a target PE of 14, I still get 10.9% annual returns over the next 5 years. I bought shares with intentions of holding it for the next 20+ years, so I see this as an opportunity more than a disappointment.
Long term trends of an aging population haven't changed. There is a short term blip due to losing Tricare and some other contracts, but I still think a high-single digit EPS growth rate going forward is likely. Especially considering the huge cash flows and a buyback program that will continue retiring 4-5% of outstanding shares every year.
The guidance for 2017 wasn't great but I don't see it as being a disaster. Flat growth year over year but management is still guiding for 10% annual growth long term.
Even using a pessimistic 6% EPS growth and 8% dividend growth over the next 5 years and a target PE of 14, I still get 10.9% annual returns over the next 5 years. I bought shares with intentions of holding it for the next 20+ years, so I see this as an opportunity more than a disappointment.
Long term trends of an aging population haven't changed. There is a short term blip due to losing Tricare and some other contracts, but I still think a high-single digit EPS growth rate going forward is likely. Especially considering the huge cash flows and a buyback program that will continue retiring 4-5% of outstanding shares every year.