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CVS Health Corp (CVS) Stock

CVS Health Corp Stock Details, Movements and Public Alerts

CVS Health Corp (CVS): The $103 Billion Healthcare Giant Executing a Leadership Turnaround

When David Joyner replaced Karen Lynch as CVS Health CEO in October 2024, he inherited a crisis. The integrated healthcare behemoth—combining 9,000 pharmacies, the Caremark pharmacy benefit manager, and Aetna insurance covering 26 million members—was hemorrhaging profits from its insurance unit. Aetna lost $1.2 billion in Q3 2024 due to spiraling medical costs. Lynch was ousted. Fast forward to Q3 2025 under Joyner: revenue hit a record $102.9 billion (up 7.8%), Aetna generated $53 million in operating income (a $1.25 billion swing), and the medical loss ratio dropped to 92.8% from 95.2%. CVS raised earnings guidance for the third straight quarter to $6.55-$6.65 per share. Joyner, a 20-year CVS veteran who led Caremark, is stabilizing the insurance business while defending the PBM against regulatory scrutiny. For investors, CVS offers a recovery play in healthcare services trading at depressed valuations—but execution risk and political headwinds remain substantial.

52-Week Range

$85.15 - $41.77

-6.40% from high · +90.81% from low

Avg Daily Volume

5,544,100

Latest volume

Fundamentals

Valuation Metrics

P/E Ratio (TTM)

207.26

Above market average

Forward P/E

11.29

Earnings expected to grow

PEG Ratio

0.57

Potentially undervalued

Price to Book

1.41

EV/EBITDA

16.33

EPS (TTM)

$0.39

Price to Sales

0.26

Beta

0.48

Less volatile than market

How is CVS valued relative to its earnings and growth?
CVS Health Corp trades at a P/E ratio of 207.26, which is above the market average of approximately 20. This premium valuation suggests investors expect above-average growth or the company has competitive advantages justifying the higher multiple. Looking ahead, the forward P/E of 11.29 is lower than the current P/E, indicating analysts expect earnings to grow over the next year. The PEG ratio of 0.57 suggests the stock may be undervalued relative to its growth rate.
What is CVS's risk profile compared to the market?
With a beta of 0.48, CVS Health Corp is less volatile than the overall market. This means when the market moves up or down by 10%, this stock typically moves less than 10% in the same direction. Lower beta stocks are often preferred by conservative investors seeking stability. The price-to-book ratio of 1.41 shows investors value the company above its book value, which often reflects intangible assets or growth prospects.

Performance & Growth

Profit Margin

0.12%

Operating Margin

2.27%

EBITDA

$14.75B

Return on Equity

0.58%

Return on Assets

2.50%

Revenue Growth (YoY)

7.80%

Earnings Growth (YoY)

-43.20%

How profitable and efficient is CVS's business model?
CVS Health Corp achieves a profit margin of 0.12%, meaning it retains $0.12 from every $100 in revenue after all expenses. This relatively low margin suggests the company operates in a competitive environment or high-cost industry where profitability is challenging. The operating margin of 2.27% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 0.58% and ROA at 2.50%, the company achieves moderate returns on invested capital.
What are CVS's recent growth trends?
CVS Health Corp's revenue grew by 7.80% year-over-year, showing steady progress in growing the business. This positive trajectory indicates the company maintains competitive positioning in its markets. Earnings decreased by 43.20% year-over-year, reflecting the bottom-line impact of business performance. These growth metrics should be evaluated against HEALTHCARE PLANS industry averages for proper context.

Dividend Information

Dividend Per Share

$2.66

Dividend Yield

3.37%

Ex-Dividend Date

Oct 23, 2025

Dividend Date

Nov 3, 2025

What dividend income can investors expect from CVS?
CVS Health Corp offers a dividend yield of 3.37%, paying $2.66 per share annually. This above-average yield of 2-4% provides meaningful income while still allowing the company to reinvest for growth. It compares favorably to the S&P 500 average and offers competitive returns versus bonds in the current rate environment. To receive the next dividend, shares must be purchased before the ex-dividend date of Oct 23, 2025.
How reliable is CVS's dividend for long-term investors?
The dividend sustainability can be assessed through the payout ratio - CVS Health Corp pays $2.66 per share in dividends against earnings of $0.39 per share, resulting in a payout ratio of 100.00%. This very high payout exceeding 90% raises sustainability concerns, as nearly all earnings go to dividends. Any earnings decline could force a dividend cut. The next dividend payment is scheduled for Nov 3, 2025.

Company Size & Market

Market Cap

$102.6B

Revenue (TTM)

$391.69B

Revenue/Share (TTM)

$309.64

Shares Outstanding

1.27B

Book Value/Share

$57.42

Asset Type

Common Stock

What is CVS's market capitalization and position?
CVS Health Corp has a market capitalization of $102.6B, classifying it as a large-cap stock ($10B-$200B). Large-caps are typically industry leaders with established business models, offering a balance of stability and growth potential. They often provide dividend income and are core holdings in institutional portfolios. With 1.27B shares outstanding, the company's ownership is widely distributed. As a major player in the HEALTHCARE PLANS industry, it competes with other firms in this sector.
How does CVS's price compare to its book value?
CVS Health Corp's book value per share is $57.42, while the current stock price is $79.70, resulting in a price-to-book (P/B) ratio of 1.39. This reasonable premium to book value suggests the market values the company's earnings power and intangible assets appropriately. Most profitable companies trade between 1-3x book value. As a common stock, this represents equity ownership with voting rights.

Analyst Ratings

Analyst Target Price

$93.96

17.89% upside potential

Analyst Recommendations

Strong Buy

6

Buy

17

Hold

5

Sell

0

Strong Sell

0

How reliable are analyst predictions for CVS?
28 analysts cover CVS with 82% recommending buy/strong buy ratings. Analyst predictions have mixed reliability - studies show consensus rarely beats market returns consistently. The strong bullish consensus may already be priced in. The consensus target of $93.96 implies 17.9% upside, but targets are often adjusted to follow price moves rather than predict them.
What is the Wall Street consensus on CVS?
Current analyst recommendations:6 Strong Buy, 17 Buy, 5 Hold, 00The bullish tilt suggests optimism about future prospects, though investors should conduct independent research.Remember that analyst opinions often lag price movements and can be influenced by investment banking relationships.

Fundamentals last updated: Dec 13, 2025, 08:22 AM

Technical Indicators

RSI (14-day)

49.61

Neutral

50-Day Moving Average

$65.20

22.24% above MA-50

200-Day Moving Average

$58.59

36.03% above MA-200

MACD Line

-0.56

MACD Signal

-0.85

MACD Histogram

0.29

Bullish

What does CVS's RSI value tell investors?
The RSI (Relative Strength Index) for CVS is currently 49.61, indicating the stock is in neutral territory (40-60 range). Neither buyers nor sellers have clear control, suggesting consolidation or balanced market forces. Combined with the price being above the 50-day moving average, this shows mixed signals requiring careful analysis.
How should traders interpret CVS's MACD and moving average crossovers?
MACD analysis shows the MACD line at -0.56 above the signal line at -0.85, with histogram at 0.29. This bullish crossover suggests upward momentum is building. The 50-day MA ($65.20) is above the 200-day MA ($58.59), forming a golden cross pattern that typically signals a long-term uptrend. Price is currently above both MAs, confirming strength.

Indicators last updated: Jun 5, 2025, 12:41 AM

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CVS Health Corp (CVS) Stock Analysis 2025: Complete Investment Guide

The turnaround is measurable. Q3 2025 revenue reached $102.9 billion, beating Wall Street estimates of $98.85 billion and marking 7.8% year-over-year growth. More importantly, Aetna—the insurance unit that triggered Karen Lynch's ouster—swung from a $1.2 billion operating loss in Q3 2024 to $53 million in operating income in Q3 2025. The medical loss ratio improved to 92.8% (down from 95.2%), indicating better control over healthcare costs. David Joyner raised full-year adjusted EPS guidance to $6.55-$6.65, up from $6.30-$6.40, marking three consecutive quarters of guidance increases. For a company that pulled guidance entirely in late 2024, this represents remarkable stabilization.

Business Model & Competitive Moat

CVS Health operates three integrated segments: Pharmacy (9,000+ retail locations including CVS and Target pharmacies), Caremark (pharmacy benefit manager processing prescriptions for employers and health plans), and Aetna (health insurance covering 26 million members). The integrated model creates flywheel effects—CVS pharmacies fill prescriptions managed by Caremark PBM, which are often paid for by Aetna insurance. This vertical integration theoretically improves margins and customer retention.

The competitive moat stems from scale and integration. CVS fills over 1 billion prescriptions annually, giving it immense purchasing power with drug manufacturers. Caremark ranks as one of the three largest PBMs (alongside UnitedHealth's OptumRx and Cigna's Express Scripts), controlling formularies and rebates. Aetna provides health insurance through employer groups and Medicare Advantage. However, the moat faces erosion: Amazon Pharmacy disrupts retail, regulators threaten PBM margins, and competitors like UnitedHealth Group execute vertical integration more profitably.

Financial Performance

  • •Record Revenue: Q3 2025 $102.9B (+7.8% YoY), beating estimates of $98.85B
  • •Aetna Recovery: $53M operating income vs $1.2B loss Q3 2024—$1.25B swing in one year
  • •MLR Improvement: Medical loss ratio 92.8% (down from 95.2%), showing better cost control
  • •Guidance Raises: FY 2025 EPS $6.55-$6.65 (up from $6.30-$6.40), third consecutive quarterly increase
  • •Aetna Growth: $36B quarterly revenue (+9% YoY), 26M members covered

Growth Catalysts

  • •Aetna Stabilization: Medical cost trends moderating; turnaround from $1.2B loss to profitability creates upside
  • •Medicare Advantage: Aging U.S. population drives MA enrollment growth (Aetna major player)
  • •PBM Pricing Power: Caremark negotiates drug rebates; specialty pharmacy growth boosts margins
  • •Integrated Care: MinuteClinic, HealthHUBs, and primary care offerings expand beyond traditional pharmacy
  • •Cost Reduction: $2B cost-cutting program underway; operational efficiency gains from integration

Risks & Challenges

  • •PBM Regulatory Risk: FTC scrutiny, Congress investigating PBM practices—potential margin compression or forced divestitures
  • •Medical Cost Volatility: Aetna's MLR improved but "elevated trends" persist; another surge could derail profitability
  • •Amazon Pharmacy: E-commerce giant expanding prescription delivery threatens CVS retail pharmacy traffic
  • •Execution Risk: Joyner leading first turnaround as CEO; integration complexity creates operational challenges
  • •Political Headwinds: Healthcare consolidation faces bipartisan opposition; drug pricing reforms could hurt PBM economics
  • •Oak Street Impairment: CVS took goodwill charges on Oak Street Health acquisition, signaling primary care strategy struggles

Competitive Landscape

CVS competes with UnitedHealth Group (Optum + UnitedHealthcare), Cigna (Express Scripts PBM + Evernorth), Walgreens Boots Alliance (retail pharmacy + VillageMD), and Amazon Pharmacy. UnitedHealth dominates with superior integration—Optum generated $77 billion in revenue Q3 2025 (more than CVS's Aetna) while UnitedHealthcare covers 52 million members. Cigna's Express Scripts PBM handles similar volume to Caremark but with better margins. Walgreens struggles more than CVS, closing stores and divesting VillageMD.

David Joyner's competitive challenge: defend Caremark against regulatory attacks while stabilizing Aetna's medical costs and maintaining retail pharmacy relevance against Amazon. UnitedHealth executes this playbook more profitably. CVS trades at a discount to UnitedHealth despite similar business models—the market questions whether Joyner can match UnitedHealth's operational excellence or if CVS remains permanently disadvantaged.

Who Is This Stock Suitable For?

Perfect For

  • ✓Value investors seeking healthcare exposure at depressed multiples
  • ✓Turnaround believers betting on David Joyner execution
  • ✓Dividend income seekers (moderate yield, established payer)
  • ✓Long-term holders (3-5 years) willing to wait for Aetna full recovery

Less Suitable For

  • ✗Growth investors seeking revenue acceleration (mature, slow growth)
  • ✗Short-term traders (turnaround plays require patience)
  • ✗Risk-averse investors (regulatory overhang, integration complexity)
  • ✗Healthcare consolidation opponents (political risk)

Investment Thesis

CVS Health trades at a discount to UnitedHealth Group despite operating similar vertically integrated healthcare businesses. The market questions whether David Joyner can sustain the Aetna turnaround, defend Caremark's PBM margins against regulators, and compete with Amazon Pharmacy. The bear case is straightforward: PBM regulations compress margins, Aetna medical costs resurge, and CVS becomes a melting ice cube. The bull case: Joyner replicates the Aetna turnaround across all segments, demonstrating operational leverage from integration. The $1.25 billion Aetna swing in one year validates Joyner's capability.

At current valuations (trailing P/E likely in low teens based on raised guidance), CVS offers attractive entry for patient value investors. Three consecutive quarters of guidance raises demonstrate improving visibility. If Aetna maintains the 92.8% MLR and Caremark withstands regulatory pressure, CVS could re-rate toward UnitedHealth multiples, offering 30-50% upside over 3-5 years. However, execution risk is real—Karen Lynch failed at this exact job. Investors should monitor quarterly MLR trends closely; any deterioration triggers selloffs. For value investors willing to accept regulatory and execution risk, CVS offers asymmetric upside at depressed valuations.

Conclusion

CVS is a BUY for value-oriented investors comfortable with healthcare regulatory risk. The stock trades at depressed multiples despite David Joyner demonstrating turnaround execution. Three consecutive guidance raises, Aetna's $1.25B profit swing, and 92.8% MLR improvement provide tangible evidence of progress. Dollar-cost average into positions over 6-12 months. Monitor quarterly MLR trends—sustained improvement supports multiple expansion toward UnitedHealth valuations. Patience required; this is a 3-5 year value realization, not a momentum trade.
Bull Case
$95 (40% upside) - Aetna fully stabilizes, PBM regulations manageable, multiple expansion
Base Case
$75 (10% upside) - Steady Aetna improvement, modest PBM margin compression
Bear Case
$50 (27% downside) - Medical costs resurge, PBM forced divestitures, Amazon gains share

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