Delta Air Lines

Investing: Cheap stocks for a pricey market

We went looking for stocks that seemed cheaper than they deserved to be, and we came up with these three candidates.

CVS Health (symbol CVS, $81)

The drugstore chain's retail pharmacy and pharmacy-benefits businesses were on a roll from 2012 to mid-2015. But after peaking at $113 in 2015, CVS shares have declined by one-third.

What's ailing the stock? Tougher competition in the pharmacy-benefits business, weak retail sales and fear that Republican plans to overhaul Obamacare could slash millions of people from the insurance rolls.

But with CVS shares selling for 13 times expected year-ahead earnings, brokerage Barclays argues that the market "understates CVS's...