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CVS Health's (NYSE: CVS) latest results affirm several points: their sales and adjusted profits remain stable, and they are adjusting their forecasts upward. Nonetheless, the quality of their profits and elevated debt still render the stock a “cheap but risky” option, rather than a definitive bargain.
CVS wants investors to know it sees bigger profits ahead, and has new AI plans.
CVS Health is positioned for continued outperformance, with a strong turnaround driving industry-leading results and a reiterated "Buy" rating. CVS's Q3 showed 7.8% revenue growth, 47% adjusted EPS growth, and significant margin improvement, reversing prior underperformance versus peers. Investor Day guidance signals robust EPS growth through 2028, led by Healthcare Benefits and a focus on profitability over aggressive expansion.
CVS Health Corporation is a top S&P 500 performer in 2025, up 78% YTD, with strong operational and financial momentum. I reiterate a Buy rating for CVS, raising my intrinsic value target to $93, based on 2026 EPS guidance and a 13x multiple. Management projects mid-teen EPS growth, robust cash flow, and improved margins across all business segments through 2028.
CVS Health's stock was up about 4% at the market open on Tuesday after the company boosted its revenue and profit guidance for the year and detailed its full-year expectations for 2026.
CVS Health Corp (NYSE:CVS) shares moved higher on Tuesday after raising its full-year 2025 financial guidance during its Investor Day event, reflecting stronger performance across its health care businesses. The company now expects 2025 revenue of at least $400 billion, up from a prior forecast of $397.3 billion.
CVS remains a great Buy here, driven by the raised FY2025 adj EPS guidance and the robust outperformance against its healthcare peers despite the industrywide headwinds. Margin recovery is expected to accelerate from FY2026, supported by the Medicare Advantage four-star ratings, the upcoming ACA exit, and the repricing of group MA contracts. CVS' valuations remain discounted at current levels, with patient investors being paid rich dividend yields pending its upward re-rating.
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 posts a sharper MBR as PDR impacts ease and government business strengthens while maintaining a cautious full-year outlook.
Wondering how to pick strong, market-beating stocks for your investment portfolio? Look no further than the Zacks Style Scores.