Three prominent investment firms bet changes are in the offing at ailing healthcare giant CVS Health and added to existing bets and established a new position during the third quarter, according to regulatory filings.
Zacks.com users have recently been watching CVS Health (CVS) quite a bit. Thus, it is worth knowing the facts that could determine the stock's prospects.
CVS Health expects the elevated levels of utilization to continue to put pressure on its 2024 performance and as a result could not provide an outlook for 2024.
Cold water has been tossed on the idea that CVS Health would break up the company and sell off health or pharmacy benefits from assets that provide medical care if you listen closely to the company's new chief executive.
CVS Health stock surged over 11% following a sizable revenue beat and the appointment of new CEO David Joyner, an industry veteran. The political landscape shift with Trump regaining the presidency and GOP gains is seen as a positive for CVS and Medicare Advantage stocks. Despite revenue growth, CVS faces significant challenges, including elevated medical costs and restructuring charges, impacting earnings and requiring a strategic turnaround.
Despite recent struggles, I remain bullish on CVS due to its potential for long-term growth and undervaluation, with a strong support level around $50. CVS faces challenges like high debt levels and declining margins, but restructuring efforts and improved star ratings offer reasons for optimism. The third quarter results showed revenue growth but significant declines in operating income and earnings per share, reflecting ongoing operational challenges.
CNBC's Bertha Coombs reports on news from CVS.
CVS Health's third-quarter earnings results released Wednesday (Nov. 6) reflected the company's ongoing efforts to adapt to a changing healthcare and retail environment. As it continued to overhaul its operations in response to shifting market dynamics, including the digital transformation of healthcare, CVS faced challenges across its various business units.
CVS' third-quarter 2024 results reflect strong performance in the Health Services and Pharmacy & Consumer Wellness segments.
U.S. stocks traded higher midway through trading, with the Nasdaq Composite gaining more than 2% on Wednesday.
CVS Health Corporation (NYSE:CVS ) Q3 2024 Earnings Conference Call November 6, 2024 8:00 AM ET Company Participants David Joyner - President, Chief Executive Officer Tom Cowhey - Executive Vice President, Chief Financial Officer Prem Shah - Group President Larry McGrath - Chief Strategy Officer, Investor Relations Conference Call Participants Lisa Gill - JP Morgan Justin Lake - Wolfe Research Stephen Baxter - Wells Fargo Michael Cherny - Leerink Partners Josh Raskin - Nephron Research Elizabeth Anderson - Evercore ISI Andrew Mok - Barclays John Ransom - Raymond James Brian Tanquilut - Jefferies Operator Good morning and thank you all for attending the CVS Health third quarter 2024 earnings call and webcast. My name is Bricka and I'll be your moderator for today.
CVS Health (CVS) shares surged after the pharmacy chain and healthcare company posted better-than-expected results and new CEO David Joyner made leadership changes as he moves to shake up the struggling firm.