Thank Jeff Bezos for Making CVS Stock an Even Better Buy

Amazon has earned a reputation for disrupting every industry it touches, but the tech behemoth is about to run up against a wall...

Shares of CVS Health Corp. (NYSE: CVS) have slumped nearly 7.9% over the last week thanks to the Inc. (Nasdaq: AMZN) takeover of online pharmacy PillPack last week.

The conventional wisdom is that Amazon is poised to massively disrupt the pharmaceutical retail space the same way it has dismantled the brick-and-mortar retail and grocery industries.

cvs pharmacyBut the consensus has it wrong, and following the herd could cost you a lot of money...

Unlike the retail and grocery businesses, firms like CVS and Walgreens Boots Alliance Inc. (Nasdaq: WBA) have enough of a moat around them to stave off Amazon.

And CVS has another trick up its sleeve that makes it nearly Amazon-proof...

Why We Aren't Scared of Amazon's $1 Billion Acquisition of PillPack

There's no denying PillPack is a terrific acquisition for Amazon.

It instantly gives Jeff Bezos' all-consuming monster a new foothold in the $450 billion U.S. pharmaceutical industry.

But the scale is nowhere close to the reach and services CVS offers.

That's why we're not worried...

PillPack's annual sales in 2017 were roughly $100 million.

CVS revenue in the first quarter alone was $45.69 billion.

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CVS also has 9,700 pharmacy locations around the United States.

Amazon is called the "everything store," but you can't pop by a warehouse and pick up blood pressure medicine.

This is one category Amazon can't compete with yet, try as they might.

Amazon still needs to make additional purchases, combine and streamline operations, and ramp up delivery mechanisms that meet regulatory requirements before it can come close.

Plus, CVS isn't interested in being beaten by Amazon. It's punching back in a big way.

You see, CVS has an acquisition of its own that Money Morning Special Situation Strategist Tim Melvin called a possible "gold mine" in December 2017.

And right now, CVS stock is in the "Buy Zone" on our proprietary stock rating system.

Analysts expect the CVS stock price to climb 53.6% in the next 12 months, so it's time to stake your claim in the $65 billion healthcare juggernaut before the stock price shoots up...

Why CVS Should Be in Every Portfolio

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Our favorite merger and acquisition deal of 2018 is between CVS and Aetna Inc. (NYSE: AET).

And owning CVS stock ahead of the deal is your best way to profit...

Wall Street has largely downplayed the powerful impact this deal will have in the healthcare sector, but the deal will turn CVS into a one-stop healthcare powerhouse.

As we've noted in the past, the deal will provide customers with a different and innovative approach to accessing the U.S. healthcare system.

Aetna's massive "Big Data" capabilities can be utilized at more than 9,700 CVS pharmacies and 11,000 MinuteClinics in the United States alone.

"You can see a doctor or physician assistant who, thanks to Aetna's vaunted 'Big Data' capabilities, will have instant access to all your child's records at their fingertips. You could get a diagnosis on the spot, grab the prescriptions you need from the on-site pharmacy, and get everyone back home," Money Morning Special Situation Strategist Tim Melvin said on Dec. 8, 2017.

It will also streamline urgent-care operations, insurance verifications, and payment systems, and it will reduce the massive stream of late-night emergency room visits that drive up consumer costs.

Shareholders of both companies approved the deal on March 13, and now the U.S. Department of Justice just needs to give its blessing.

The deal is expected to close in the second half of 2018, according to CNBC.

That means investors can still buy shares of CVS before the merger if they act now.

One group of analysts believes the CVS stock price will climb to $100 per share in the next 12 months. From today's (July 5) opening price of $65.10, that's a potential profit of 53.6%.

Again, that may be too conservative, because Wall Street still hasn't caught on to how big of a deal this will be.

On top of the stock price climbing, CVS also pays its shareholders a generous dividend of $2 per share, for a yield of 3.11%. That can be reinvested into the stock to boost your returns or is extra cash in your pocket.

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