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With the resurgence of COVID-19 cases and rising concerns over the highly transmissible omicron coronavirus variant, the drugstore industry is expected to witness high demand. Also, the industry is usually a steady performer, given an almost inelastic demand for drugs. According to a report by Research and Markets, the global pharmaceuticals market is expected to grow at a CAGR of 8% from 2021 to 2025. Therefore, both CVS and RAD should benefit.
CVS has gained 18% over the past three months, while RAD has 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.
