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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Investor Insights
star iconJul 2, 2026, 12:00 am

This 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.

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Consensus
Cautious
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Valuation
Undervalued
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WBA
PAST TOP PICK
(A Top Pick Jan 22/21, Up 46%) Trades at 13x earnings. Still a long way to go. He's very big on pharmacies, as they're delivering more and more services since it's cheaper than via hospitals.
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Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

PAST TOP PICK
(A Top Pick Nov 26/20, Up 55.5%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with CVS is progressing well. We now recommend trailing up the stop (from $82) to $95. If triggered, this would all but guarantee a net investment gain of 30%, when combined with our previous recommendation to cover half.
PAST TOP PICK
(A Top Pick Jan 19/21, Up 42%) Debt is manageable. Free cashflow of about 13B. Well capitalized. Insurance, pharmacy with HealthHub, pharmacy benefit manager. Not expensive at 13x earnings.
BUY
Has done well, raising estimates for 2022. Redefined itself, and the market's realizing it's more than just a drugstore. Centred around health wellness. Trades at 12x earnings. Good cashflow, decent dividend.
HOLD
The PE is still attractive. CVS is adding more health services in their drug stores. Covid vaccinations encourage consumers to buy more items in their stores when they visit. Still a hold and you'll get a decent return. Still some upside here.
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Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

PAST TOP PICK
(A Top Pick Nov 26/20, Up 37.69%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with CVS is progressing well. We recommend trailing up the stop (from $70) to $82. If triggered this would result in a net investment gain over 21%, when combined by our previous recommendation to cover half.
COMMENT
They report Wednesday. They've been a roll because of the Covid vaccine and superior execution compared to Walgreens. But can they continue their streak as the pandemic winds down? They do have a huge health insurance business.
PAST TOP PICK
(A Top Pick Feb 26/20, Up 39%) He still likes it. It has a unique business model: a pharmacy, pharmacy benefit management (PBM) and health insurer. Pays a good dividend, diversified and trades around 10x earnings. Free-cash flow yield is almost 9%. It's a durable business.
BUY
It's cheap, and trades well below the market multiple. Booster shots will be a big benefit to CVS.
BUY
Vertically integrated, growing dynamically. CVS has health insurance with Aetna, pharmacy benefit manager with CareMark, and HealthHub offering in-store diagnostics. Better choice than WBA.
PAST TOP PICK
(A Top Pick Aug 21/20, Up 34%) Absolutely he'll stick with it. Trades at a fine PE. It's not just pharmacies but health insurance to add up to a vertical health business.
HOLD
WBA has operations in the US and UK. Stays in drug retail and expands geographically. Doesn't grow quickly, but it's not an income stock either. Growth profile not attractive. She owns CVS instead, with its vertically integrated strategy.
PAST TOP PICK

(A Top Pick Jun 29/20, Up 32%) They became big after buying Aetna. They're broadening offering within stores to offer services like nurse practitioners. They think beyond just being a drug store. They're well-positioned in their industry. Take a long-term view, but you can buy this at current prices.

BUY

He prefers CVS to WBA. WBA has spun its wheels a bit. CVS has better management, and it's vertically integrated with Aetna and its pharmacy benefit manager. As the pandemic eases, its revenues from Covid will shift to other areas, such as HealthHUB for chronic conditions.

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