NYSE:CVS
CVS Health Corp (CVS)
104.72
-0.09 (0.09%)
as of Jul 2, 2026, 8:00:00 pm Market Open.
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Financials 
Technical Analysis 0
Investor Insights
Jul 2, 2026, 12:00 amThis summary was created by AI, based on 9 opinions in the last 12 months.
CVS Health Corp has recently shown promising signs of recovery, with a notable increase in earnings and revenues leading to a significant share price jump. While some analysts praise the turnaround story attributed to effective management and a strategic pivot towards health services, caution is advised due to the persistent challenges in the retail pharmacy sector and overall weak visibility in quarters ahead. The stock appears to be undervalued compared to its peers, particularly in the context of its healthcare sector rivals. Recent improvements in its managed care business are encouraging, coupled with an impressive performance in pharmacy sales, which have surged by 18% year over year. Overall, a mixed outlook persists, balancing optimism about its strategic shifts against the backdrop of previous performance declines.
Consensus
Cautious
Valuation
Undervalued
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WBA
BUY
Real estate component, acquisitions? Not a real estate play. Unique business model with retail pharmacy and PBM and health insurer all in one company. Balance sheet is in great shape. Gobs of free cashflow, low PE of less than 9. Can't speak to future acquisitions.
Chris BlumasOwned
specialty stores
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Premium contentTOP PICK
Stockchase Research Editor: Michael O'Reilly We again reitereate this top retail pharmacy and health care insurance company as a TOP PICK. Sales are up over 8% over the year with net income of $8 billion. It pays a good dividend backed by a payout ratio under 40% of cash flow. We like that it has continued to build cash reserves, while aggressively retiring debt and buying back shares. We recommend moving the stop loss (from $90) down to $85, looking to achieve $117 -- upside potential of 24%. Yield 2.29% (Analysts’ price target is $117.39)
specialty stores
TOP PICK
Defensive value name. Expectations that EPS growth will grow by high single digits or low doubles. Largest drugstore chain, leading pharmacy benefits manager. Aetna purchase added to revenue growth. Shareholder friendly. Beat earnings and raised guidance this week. Beat analysts expectations for 25 consecutive quarters. 12x forward earnings. Trading at discount to historical median. Yield is 2.21%. (Analysts’ price target is $117.86)
Stan WongOwned
specialty stores
TOP PICK
More than just America's leading pharmacy. Vertically integrated colossus. #4 in the Fortune 500, and they got there through acquisitions. Earnings beat today, earnings grew YOY by 9%. Tweaked up guidance. Pivoting away from slower-growing retailer and toward faster-growing, upstream managed care and insurance. Showing financial strength with share buybacks. Trades at 12x earnings, still in middle innings. Lots of visibility in a murky economic environment. Yield is 2.29%. (Analysts’ price target is $117.53)
Brian MaddenOwned
specialty stores
TOP PICK
This drugstore chain is vertically integrated by owning health insurer Aetna, and many of their stores include health hubs where medical personnel including nurses to address people's chronic health issues at a low cost. Their 2021 was solid, driven by vaccinations, but 2022 will be flat. He projects 6-7% annual growth, trades at 12x earnings. Well managed. They fill over 1 billion prescriptions a year. (Analysts’ price target is $117.53)
Gordon ReidOwned
specialty stores
HOLD
Safety trade. Healthcare solutions. Very good future. Over $8 EPS for 2022. New CEO is doing a good job.
Gordon ReidOwned
specialty stores
PAST TOP PICK
(A Top Pick Jan 22/21, Up 38.85%) Pretty low multiple. In debt reduction mode. In future, great free cashflow, share buybacks, more acquisitions, pay down debt. Likes this better than peers as it's more than just a pharmacy; it's an integrated provider.
Lorne SteinbergOwned
specialty stores
Premium contentTOP PICK
Stockchase Research Editor: Michael O'Reilly This owner of 10,000 pharmacies across the US, who fills more than 20% of all prescriptions in the country, is reiterated again as a TOP PICK. The company announced a partnership with MSFT to bring more cloud based services to its customers, which should reduce costs and help retain customers. Forward earnings project the stock at 11x earnings, compared to peers at 15x and it trades under 2x book. It has been increasing cash reserves, while aggressively retiring debt. It pays a good dividend, backed by a payout ratio under 40% of cash flow. We would recommend adjusting the stop to $90.00, looking to achieve $117.50 - upside potential over 16%. Yield 2.18% (Analysts’ price target is $117.52)
specialty stores
DON'T BUY
Great job operationally. Earnings have grown nicely. 2022 will be relatively flat, depending on how well they can push through prices. 10-13x earnings, not expensive. Yield is 2%, not growing quickly. Probably better places to be such as COST or DOL, which he owns. More defensive than he'd want right now.
specialty stores
BUY
Healthcare stock outlook Healthcare stocks haven't done that well, so certain sectors hold potential. Careful with biotechs which have been hit hard by this correction, down over 50% from their peaks. CVS he likes--it owns Aetna, a health insurer, and are transforming their storefronts into mini-health hubs. All good. Also, he likes their pharma business. A well-rounded company.
Gordon ReidOwned
specialty stores
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