CVS Health
CVS
$100.72
+0.04%
CVS Health Corporation is a diversified healthcare services giant operating in the Medical - Healthcare Plans industry, integrating retail pharmacy, pharmacy benefit management (PBM), and health insurance (Aetna) under one roof. The company is a dominant market leader, uniquely positioned as a vertically integrated healthcare provider with its recent addition of Oak Street Health primary care clinics, aiming to capture value across the entire care continuum. The current investor narrative is focused on a powerful operational turnaround, driven by a significant earnings beat, a rebound in its insurance unit's profitability from a lower medical cost ratio, and a favorable $13 billion Medicare payment decision from CMS, which has catalyzed a substantial stock rally and raised guidance.…
CVS
CVS Health
$100.72
Related headlines
CVS 12-Month Price Forecast
Wall Street consensus
Most Wall Street analysts maintain a constructive view on CVS Health's 12-month outlook, with a consensus price target around $130.94 and implied upside of +30.0% versus the current price.
Average Target
$130.94
7 analysts
Implied Upside
+30.0%
vs. current price
Analyst Count
7
covering this stock
Price Range
$81 - $131
Analyst target range
Insufficient analyst coverage data is available to provide a detailed consensus view, as the provided data only includes 7 analysts for estimates but lacks a consensus recommendation, average price target, or distribution. The limited number of covering analysts suggests CVS, despite its large market cap, may have less dense institutional coverage typical of complex, diversified businesses, which can lead to periods of higher volatility and less efficient price discovery. The available institutional ratings show a generally positive bias, with recent actions including an upgrade to 'Outperform' from Bernstein in March 2026 and maintained 'Buy' or 'Outperform' ratings from firms like B of A Securities, UBS, and Mizuho in late 2025, indicating building bullish sentiment among the analysts that do cover the name.
CVS Technical Analysis
The stock is in a powerful, sustained uptrend, evidenced by a 53.67% gain over the past year. As of the latest close at $101.96, the price is trading near the top of its 52-week range ($58.50 to $102.76), specifically at approximately 99.2% of that range, indicating strong momentum but also potential overextension near a key technical resistance level. Recent short-term momentum is exceptionally strong and accelerating, with the stock up 33.93% over the past three months and 3.92% over the past month, significantly outperforming the SPY, which gained 12.0% and -0.08% over the same periods, respectively. This divergence from a weaker broader market underscores the stock-specific catalysts driving the rally. Key technical levels are clear, with immediate resistance at the 52-week high of $102.76 and support at the 52-week low of $58.50. A confirmed breakout above $102.76 would signal a continuation of the bullish trend, while a failure could lead to consolidation. The stock's beta of 0.623 indicates it is approximately 38% less volatile than the broader market, which is notable given its recent explosive price action and suggests the rally has been driven by fundamental re-rating rather than speculative frenzy.
Beta
0.62
0.62x market volatility
Max Drawdown
-16.4%
Largest decline past year
52-Week Range
$59-$103
Price range past year
Annual Return
+48.8%
Cumulative gain past year
| Period | CVS Return | S&P 500 |
|---|---|---|
| 1m | +5.0% | +1.5% |
| 3m | +37.9% | +13.4% |
| 6m | +29.5% | +10.9% |
| 1y | +48.8% | +24.5% |
| ytd | +25.7% | +10.0% |
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CVS Fundamental Analysis
Revenue growth has been robust, with Q4 2025 revenue of $105.69 billion representing an 8.17% year-over-year increase, and segment data shows Pharmacy Revenue ($61.62B) and Premiums ($34.02B) as the primary drivers. However, profitability has been volatile on a quarterly basis; while Q4 2025 showed strong net income of $2.94 billion, this followed a significant net loss of -$3.98 billion in Q3 2025, indicating lumpy results, potentially from one-time items. The trailing twelve-month gross margin stands at 13.77%, and the net margin is a thin 0.44%, reflecting the low-margin nature of its high-volume businesses, though the recent quarterly net margin of 2.78% in Q4 2025 shows improvement. The balance sheet carries moderate leverage with a debt-to-equity ratio of 1.24, but the company generates substantial cash flow, with TTM free cash flow of $7.81 billion, providing ample liquidity to fund operations, dividends (yield of 3.38%), and strategic initiatives without excessive reliance on external financing, as evidenced by a current ratio of 0.84 and an ROE of 2.35%.
Quarterly Revenue
$105.7B
2025-12
Revenue YoY Growth
+0.08%
YoY Comparison
Gross Margin
+0.12%
Latest Quarter
Free Cash Flow
$7.8B
Last 12 Months
Revenue & Net Income Trends (2 Years)
Revenue Breakdown
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Valuation Analysis: Is CVS Overvalued?
Given the positive net income in the most recent quarter, the primary valuation metric is the P/E ratio. The trailing P/E is elevated at 56.87x, heavily influenced by the volatile quarterly earnings, while the forward P/E is a much lower 12.18x, indicating the market expects a significant normalization and growth in profitability. Compared to sector averages, the stock trades at a discount on a sales basis, with a P/S ratio of 0.25 and an EV/Sales of 0.48, typical for low-margin, high-revenue healthcare services firms. Historically, the current trailing P/E of 56.87x is near the top of its own range over the past several years, which has typically fluctuated between single digits and the low 20s, suggesting the market is currently pricing in highly optimistic expectations for sustained earnings recovery following the recent positive catalysts.
PE
56.9x
Latest Quarter
vs. Historical
Low-End
5-Year PE Range -9x~227x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
18.8x
Enterprise Value Multiple
