CVS has had to weather some rocky stock moves since closing on its merger with health insurer Aetna Inc. , but things could be looking up soon.

CVS, +0.58% Shares of the drugstore chainhave fallen 15% so far this year amid narrowing pharmacy margins; investor concern over the future of health policy ; increased scrutiny into the pharmacy-benefit manager model (CVS owns its own PBM, CVS Caremark); and investor skepticism over the company’s $70-million Aetna acquisition.

Some of those concerns seem to be easing. After attending the company’s Investor Day in June, Raymond James analysts wrote in a note that the company was now “well-positioned to increase market share and offer new, innovative products to drive growth.”

Cantor Fitzgerald analyst Steven Halper wrote in a June note : “We maintain our view that, although 2019 may be a transitional year, CVS is nicely positioned to transform health-care delivery.”

Part of CVS’s plan to transform the health-care industry involves a bigger push into health services. The company is rolling out specialized “HealthHUB” stores, which offer expanded health-related services like kiosks where customers can track their blood pressure, weight and BMI; wellness rooms for hosting health classes; and dietitians who can offer nutritional advice. The company has said it plans to have 1,500 health-hub stores by the end of 2021, many of which will be aimed at patients dealing with chronic diseases.

The drugstore giant is scheduled to report second-quarter earnings Wednesday. Analysts polled by FactSet are expecting per-share earnings of $1.69, the same as a year ago. Sales should grow to $62.629 billion from $46.708 billion in the year-earlier quarter, driven by an expected $17.201 billion boost from Aetna’s health-care benefits business. CVS’s pharmacy services business is expected to bring in $34.135 billion, up from $33.247 billion a year ago, while sales of the retail segment are expected to grow to $21.19 billion from $20.672 billion.

WCG, -0.06% Things seem to be looking up, but the company still has a significant hurdle to clear. The Justice Department approved the CVS-Aetna merger, which closed in November, after the drugstore chain agreed to divest Aetna’s Medicare Part D business to WellCare Health Plans Inc.However, that may not have been enough — U.S. District Judge Richard Leon is currently reviewing whether or not the Justice Department adequately protected competition when it approved the deal.



