CVS Health (CVS) has been one of the stocks most watched by Zacks.com users lately. So, it is worth exploring what lies ahead for the stock.
In the most recent trading session, CVS Health (CVS) closed at $65.45, indicating a +0.43% shift from the previous trading day.
Caremark, CVS Health's PBM business, is expected to have continued to play a vital role in offsetting the rising cost of branded drugs during the first quarter.
The medical sector stocks, notably the health insurance carriers, took a major drubbing in 2024 as Medicare Advantage (MA) plans continued to drive higher utilization costs, eating away at profits. These rising costs are illustrated by the medical benefits ratio (MBR), benefits expense ratio (BER), medical care ratio (MCR) or medical loss ratio (MLR), which is the percentage of premiums used to pay for medical services.
CVS Health Corporation surged 10% intraday and ended yesterday 6% higher, driven by a new CFO announcement and increased Medicare Advantage payments. Despite a challenging fiscal 2024, CVS is undervalued with strong growth potential, expecting 3.5% revenue growth and 6-11% EPS growth in 2025. CVS remains a solid investment due to its recession-resilient business model, low tariff impact, and trading below intrinsic value.
Recently, Zacks.com users have been paying close attention to CVS Health (CVS). This makes it worthwhile to examine what the stock has in store.
CVS Health (CVS) witnessed a jump in share price last session on above-average trading volume. The latest trend in earnings estimate revisions for the stock doesn't suggest further strength down the road.
Health insurance stocks soared Tuesday morning on the first full day of trading after the U.S. government announced a more than 5% average increase in government reimbursement rates for 2026 Medicare Advantage plans run by private insurers.
Investors looking for ways to find stocks that are set to beat quarterly earnings estimates should check out the Zacks Earnings ESP.
CVS Health Corp Chief Financial Officer Thomas Cowhey intends to step down from his position, Bloomberg News reported on Monday, citing people familiar with the matter.
CVS Health's strong track record of stable cash generation aids it amid the broader market sell-offs due to escalating 2025 Trump tariffs.
CVS has been worst hit by the rising healthcare utilization/ medical costs, as observed in the relatively higher medical benefit ratio in FQ4'24/ FY2024 compared to its peers. Even so, we believe that FY2024 (and maybe FY2025) are likely to be its trough years, as the management offers promising guidance and the consensus raises forward estimates. Despite industry-wide issues, CVS remains well positioned to weather through the near-term uncertainties, thanks to the pricing increases and the stable balance sheet health.