NYSE:CVS

CVS Health Corp (CVS)

97.90
+0.84 (0.87%)
as of Jun 10, 2026, 7:37:33 pm Market Open.
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Investor Insights
star iconJun 10, 2026, 12:00 am

This summary was created by AI, based on 9 opinions in the last 12 months.

CVS Health Corp has seen a significant rise in its stock price, recently jumping 8% to reach a three-year high after beating earnings and raising its full-year forecast. Experts note that while the stock may appear cheap, caution is warranted as some underlying issues persist, particularly with visibility and execution. CVS is more than just a drug store chain; it is also a managed care company that is undergoing a transformation driven by strong leadership. Although the retail pharmacy space faces weaknesses, their health insurance segment is showing substantial improvement with notable revenue growth, leading to positive adjustments in guidance. Overall, CVS is viewed as a turnaround story that presents growth opportunities as competitors falter, and its valuation relative to earnings suggests that it may still have room to increase further.

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Consensus
Positive
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Valuation
Undervalued
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MRK
TOP PICK

They just did a huge acquisition, Aetna, and took on a lot of debt. CVS is well-positioned, because they cover the pharmacy side and pharma benefits sides. They will help reduce US medical costs. It trades at a cheap 10x earnings and boasts big dividend growth. A really cheap stock in any market. (Analysts’ price target is $80.73)

PAST TOP PICK
(A Top Pick Sep 17/19, Up 18%) There's a lot of uncertainty in the healthcare space in America and CVS plays a pivotal role. It trades at 10x earnings and pays an 8% free cash flow yield. It's vertically integrated and in a competitive position. This used to trade at 8x earnings. His limit is to buy at 10-10.5x earnings, so it's a hold for him now. They spend a ton of cash, but have a lot of cash flow. Hold if you own or buy on a pullback. The valuation offsets the uncertainty.
SELL
He used to own it. He had assumed earnings per share would continue to grow double digits. They were eventually not able to grow at a double digit rate and has been in a struggle since then. When it merged with other companies it has become difficult to forecast where the company is going to go.
HOLD
We have had a big run up. His model price is $79.37 so he would look more at Walgreens now.
BUY
He's recommended this when it was way lower at $54. The FMV is 90% higher than the current price. Has a decent balance sheet, but it faces resistance at $80. If it breaks that, $110 is the next target. CVS avoided getting accused by the US courts for opiate trafficking.
TOP PICK
One of largest healthcare companies in the US. Retail, pharma benefits, healthcare benefits. Defensive, attractive valuation. Yield is 2.67%. (Analysts’ price target is $79.28)
COMMENT

CVS vs WBA? He thinks CVS has more growth potential. Both have been relatively poor performers over the past couple of years. The main reason being there are too many pharmacies in the US. With Walmart, Costco and Target getting involved the competition is intense and putting pressure on margins. CVS is worthy of a look following the investment in AETNA, which is helping them diversify. Amazon is expected to enter the space soon.

BUY

WBA-Q vs. CVS-N. He just bought CVS-N. Walgreens is still the pure Walgreen - Boots alliance, pharmacy business, incredibly well run. CVS-N merged with Aetna on the benefits side. The risk on healthcare is always legislation. The US is aging like all western countries. They cover all the bases. Both companies are so well entrenched that it is hard to displace them.

DON'T BUY
It had a lift in August/September. But there was been no technical breakout. He would lean away from it.
PAST TOP PICK

(A Top Pick Oct 11/18, Down 13%) He sold it. They bought 2 different businesses, including insurer Aetna. This integration will help them grow. But this space is entering the US election cycle and will be targeted in 2020. Good cash flow and managers, though. Buy this on pullbacks.

PAST TOP PICK
(A Top Pick Aug 09/19, Up 6%) It also benefits on the insurance side. The integration with the pharma side has gone well. Earnings are expected at $7 per share and if it trades at 10 times earnings, it will be a $70 stock.
TOP PICK
A favorite of his. It has a long-term positive because it's part of the long-term solution for high American healthcare costs. CVS bought Aetna (a health insurer) and has a pharmacy division, but most importantly 1,500 Health Hubs which deal with customers' chronic health problems, which is far cheaper than going to an American emergency ward. (Analysts’ price target is $70.88)
TOP PICK
There's been a lot of negativity about the US health space, because no one knows what US healthcare reform will amount to long-term. This is an integrated healthcare provider including insurance. Trades at 9x earnings. (Analysts’ price target is $70.88)
BUY
Attractive valuation. Vertically integrated. Better positioned than Walgreens in the new world of health in the US to bring down costs. Trading at 9-10x earnings.
DON'T BUY
It is struggling with reimbursement risk and is a real political hot potato. The US Administration is looking for political wins going into elections and will likely target drug costs. He would step away right now. He wouldn't try to chase value.
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