CVS Health (NYSE: CVS) is the largest pharmacy services provider in the U.S. comprised of ~9,700 pharmacies and 1,139 minute clinics. CVS is one of the leading Pharmacy Benefit Managers ("PBMs") providing services such as mail-order, prescription plan management, and claims processing. With 1.6B claims processed in 2016, it is the largest PBM as Walgreens (NASDAQ: WBA) processed 740mm. CVS' size gives it premium negotiating power and scale advantages.
Over the last 12 months, CVS's share price is down 23%. I will argue that this selloff is overblown and positions CVS as a quality company that is attractively valued in widely overvalued market.