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.
Perhaps it's not all too surprising to witness the S&P 500 run into turbulence after two of the best years for stock gains in recent memory.
CVS Health (CVS) witnesses a hammer chart pattern, indicating support found by the stock after losing some value lately. This coupled with an upward trend in earnings estimate revisions could mean a trend reversal for the stock in the near term.
CVS Health has shown impressive year-to-date performance, driven by strong Q1 results and strategic shifts in its business model. I reiterate a buy rating on CVS due to its low valuation, mixed technicals, and promising earnings growth prospects. Key catalysts include improved performance in Healthcare Benefits, higher star ratings in Medicare Advantage, and strategic exits from less profitable areas.
CVS' turnaround may be here, given the seemingly stabilizing medical cost trends as similarly reported by its peers, with it triggering the moderating Medical Benefit Ratio. This is despite the stable enrollments and the higher utilization, thanks to its improved Medicare Advantage star ratings and the growth in its commercial-fee businesses. We are likely to see CVS' Health Care Benefits segment report sequential improvements after the exit from the Affordable Care Act [ACA] plans from 2026 onwards as well.
CVS Health (CVS) might move higher on growing optimism about its earnings prospects, which is reflected by its upgrade to a Zacks Rank #2 (Buy).
When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?
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.
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Eli Lilly and Company's stock fell over 11% after CVS Caremark excluded Lilly's obesity drug Zepbound from its standard commercial formularies starting July 1, 2025. The market overreacted to CVS's exclusion, creating a temporary mispricing in Lilly's stock, presenting a potential buying opportunity. Despite CVS's exclusion, Zepbound still has broad market access through other PBMs and regional health plans, ensuring continued sales growth.