NYSE:CVS

CVS Health Corp (CVS)

97.38
+0.32 (0.33%)
as of Jun 10, 2026, 4:19:46 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
DON'T BUY
He sold it. CVS bought Aetna--the combination of the two looked great. Sadly, CVS is having integration problems that could continue, and carry a lot of debt. He held on too long before he sold. If you own this, ride it out.
DON'T BUY
It's had a gut punch with negative earnigns revisions. CVS needs to prove itself for him to step in. The chart is broken. He won't go near this.
COMMENT
It is having a tough time. You are having a 3.3% dividend yield but some of the legacy retail and some of the PBM units are facing structural headwinds. It is going to take time.
COMMENT
He likes health care. It is a more defensive sector. This is not the best of bread on all metrics. They have a great balance sheet and they pay a good yield. They are not compelling, however.
WEAK BUY
He sees about a 21% upside and could see it test $85. He would be a weak buy here.
DON'T BUY
It has yield support of about 3%. Earnings are improving as they do the right things, leading to 8-10% growth. The retail space does not excite him. It has significant overhead resistance. There are better spaces to be in right now. He would look more towards medical devices rather than this space.
BUY
They're positioning themselves in vertical integration to succeed. They just closed the Aetna (insurer) purchase. CVS has 10,000 locations in the U.S. can capitalizing in healthcare by creating a clinic system within CVS locations to address non-emergency medical chronic issues (i.e. testing blood pressure). Most medical issues are not emergencies but they cost emergency rooms heavily. CVS helps address this problem.
HOLD
A poor performer. It is trading at a low valuation. He is taking a good hard look at the sector and this company. Looks cheap and it is in a growth area.
TOP PICK
Good base above $62. Buy at this point, which is the bottom of its range. $63.80 is the exit point. $8-10 upside from here. (Analysts’ price target is $89.62)
DON'T BUY
He bought it because of the extended, mobile delivery of services--it is a good idea. The Uber of healthcare. He owedn CVS for a couple years. But he's concerned about all the American pharmacies offering opiods, and he expects class-action lawsuits against the pharmacies. He's wary of this space and worried.
DON'T BUY
Two sides to it. Pharmacy benefit side (PBM) and the retail side. Doesn't like the pharmacy benefit side. Generics pricing is an headwind. They are doing a number of right things but there is nothing to get really excited about. Prefers UNH-N.
BUY
The healthcare stocks in the US have been quite volatile. The aging population likes their pharmacy and the pickup and delivery. This one is trading relatively cheaply and is a solid business. He thinks the grocery chains will buy them up. (Analysts’ price target is $92.00)
COMMENT
CVS or BAC? He owns both and struggles to pick one over the other. Building a portfolio with different balances makes sense. CVS is a little out of favour as it is being "Amazoned". However, they have 11,000 locations in the US and have set up mini-health clinics with nurses on staff -- a good differentiation. BAC has corrected and is now trading at recessionary levels (below book value) -- extreme levels not seen since 2008 and great value.
WATCH
He has always struggled with this one because it has struggled for so long. You have to pay attention to distributors. They are looking better. They are in the midst of a turnaround. You want to see it hang in, in the face of a tough market.
PAST TOP PICK
(A Top Pick Jun 01/18, Up 27%) It was so cheap this summer. The big news is that they have closed the AETNA acquisition and he thinks there is still room to move higher. The trend to lowering health care costs is possible and this is the combination to take advantage. He thinks it will trade over $100 next year.
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