CVSCVS Health demonstrates a mixed but generally positive investment profile. While the company has a stable dividend and is involved in essential healthcare services, its recent performance shows some pressure, and near-term technicals suggest caution. The company's large scale and diversified operations provide a degree of resilience.
CVS Health operates within the defensive healthcare sector, benefiting from consistent demand for its pharmacy, insurance, and healthcare services. Trends like an aging population and increasing healthcare spending provide a stable, albeit not explosive, growth backdrop.
CVS Health exhibits a solid, albeit not spectacular, financial footing. Its revenue base is substantial, and it maintains a consistent dividend, but recent profitability has been under pressure, and debt levels are considerable.
The stock has experienced a significant decline recently, trading below key moving averages. While some oscillators suggest oversold conditions, the overall trend is bearish in the short to medium term, indicating potential for further downside or a period of consolidation.
| Factor | Score |
|---|---|
| Aging Population | 85 |
| Healthcare Accessibility | 75 |
| Managed Care Evolution | 60 |
| Digital Health Integration | 70 |
| Regulatory Headwinds | 50 |
| Factor | Score |
|---|---|
| Valuation | 70 |
| Profitability | 40 |
| Growth | 65 |
| Balance Sheet Health | 55 |
| Cash Flow | 60 |
| Dividends | 85 |
| Factor | Score |
|---|---|
| Trend Analysis | 30 |
| Momentum | 70 |
| Volume Confirmation | 50 |
| Support & Resistance | 60 |
| MACD | 30 |
Positive Earnings Surprises
The company has exceeded earnings per share (EPS) estimates in the last four reported quarters, with surprises ranging from 3.54% to 32.07%. This indicates consistent operational efficiency and better-than-expected profitability.
Attractive P/E Ratio
The Price-to-Earnings (P/E) ratio on a trailing twelve months (TTM) basis is 21.2, which is favorable compared to the sector's average P/E ratio. This suggests the stock may be trading at a reasonable valuation relative to its earnings.
High Quarterly P/E Ratio
The quarterly P/E ratios, particularly in Q1 2025 (47.2) and Q3 2024 (874.2), are significantly elevated. This suggests that recent earnings might be low relative to the stock price, potentially indicating overvaluation or short-term earnings volatility.
Slowing Revenue Growth
While annual revenue for 2024 reached $372.8 billion, quarterly revenue growth appears to be slowing or volatile, with Q3 2024 showing a net income margin of only 0.1%. This indicates potential pressure on top-line performance and profitability conversion.
July 2025
22
Ex-Dividend Date
July 2025
31
Next Earnings Date
H: $1.72
A: $1.46
L: $1.37
H: 98.80B
A: 94.59B
L: 91.19B
August 2025
1
Next Dividend Date
CVS Health Corporation provides health solutions in the United States. It operates through Health Care Benefits, Health Services, and Pharmacy & Consumer Wellness segments. The Health Care Benefits segment offers traditional, voluntary, and consumer-directed health insurance products and related services, including medical, pharmacy, dental and behavioral health plans, medical management capabilities, Medicare Advantage and Medicare Supplement plans, PDPs and Medicaid health care management services. It serves employer groups, individuals, college students, part-time and hourly workers, health plans, health care providers, governmental units, government-sponsored plans, labor groups, and expatriates. The Health Services segment offers pharmacy benefit management solutions, including plan design and administration, formulary management, retail pharmacy network management, specialty and mail order pharmacy, clinical, disease management, medical spend management services, and other administrative services. It serves employers, insurance companies, unions, government employee groups, health plans, prescription drug plans, Medicaid managed care plans, CMS, plans offered on public health insurance, and other sponsors of health benefit plans. The Pharmacy & Consumer Wellness segment sells prescription and over-the-counter drugs, consumer health and beauty products, and personal care products. This segment also distributes prescription drugs; and provides related pharmacy consulting and other ancillary services to care facilities and other care settings. It operates online retail pharmacy websites, LTC pharmacies and on-site pharmacies, retail specialty pharmacy stores, compounding pharmacies and branches for infusion and enteral nutrition services. The company was formerly known as CVS Caremark Corporation and changed its name to CVS Health Corporation in September 2014. CVS Health Corporation was incorporated in 1996 and is headquartered in Woonsocket, Rhode Island.
79.45 USD
The 39 analysts offering 1 year price forecasts for CVS have a max estimate of 95.00 and a min estimate of 67.00.