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CVS Health Corp has had a tumultuous year, witnessing a mix of positive and negative sentiments from experts. While some praise its recent stock price recovery and improvements in its managed care business, Aetna, others highlight enduring challenges, such as losing key contracts and struggling against online competition, particularly from Amazon. The company faces significant hurdles, including a weak technical structure and potential value traps, as analysts express concerns about its ability to execute on its growth strategy. Furthermore, CVS Health's vertical integration moves have not yet delivered the expected results, leading to skepticism about its future profitability and performance amidst ongoing regulatory pressures. Despite these struggles, its strong dividend yield and cash flow potential create a nuanced outlook that leaves some investors hopeful for a turnaround.
Shocking that it rallied 25.8% in January, since it was spiralling last year, down 43%. There's no clear catalyst for their rally, though it helped that Medicare payments would increase from 2025 to 2026. He's waiting for their report next Wednesday before deciding.
Weak technical structure. 200-day MA falling, and stock price is below that. Longer-term weekly charts look just as tough. Earnings are tough in physical stores. Trump's (perhaps empty) threats to remove middle benefits management has impacted stock. Good yield at 5.81%, but how secure is it?
Keep a close eye on it, as technicals are telling you that things could get worse.
It's been problem after problem for them. Theft is forcing them to lose market share to Amazon. They're closing their worst-performing stores, opening health clinics and double-down on their non-drugstore businesses like Aetna and health insurance benefits manager. They have more than 900 medic clinics and 200 Oak Street health clinics. (Walgreens is reducing their clinics and Walmart got rid of all their clinics, because they can't find workers.) CVS bought Aetna 6 years ago, but managed care providers have been struggling for 1.5 years as people catch on post-Covid surgeries, which means paying out for those procedures. Meanwhile, Aetna dropped the ball on Medicare advantage plans for seniors; the plans were too cheap, which attracted many more customers, so people are using more healthcare services as the government is getting stingier with payments. Poor performance forced the CEO to be fired last October. Shares down -25% in December alone (healthcare stocks have fallen out of favour since the election and the Humana CEO murder). Then, Trump threatens to cut out the middlemen in health insurance. Just two days ago, the Justice Department slapped them with a lawsuit over controlled substances, which he thinks is damning. Their balance sheet is weak.
He sold it 3 months ago after holding it a long time. Shares keep falling. They fired their CEO. On paper, this stock looked good--reasonable valuation and good growth prospects, but they could never execute. There was always one piece in the vertical integration that failed them. That's why he left. The shares look cheap now, but can get cheaper. This is a value trap.
Not only pharmacies, but offer health insurance, home care, pharmacy benefits management. CVS is the best-positioned healthcare company in the US. Trades at only 10x PE and pays a 5% dividend yield. He expects double-digit earnings growth in coming years despite the soft retail environment. Problems with Medicaid reimbursement should ease with the new administration and looser regulation.
(Analysts’ price target is $67.65)200-day MA moving lower, stock price is below that. Basing since May. Retail side is the issue. Declining foot traffic, people are buying online. Integration problems with its various businesses. Earnings growth looks weak.
He prefers growthier names, drug distribution, and traditional pharma like BMY.
CVS Health Corp is a American stock, trading under the symbol CVS-N on the New York Stock Exchange (CVS). It is usually referred to as NYSE:CVS or CVS-N
In the last year, 32 stock analysts published opinions about CVS-N. 9 analysts recommended to BUY the stock. 20 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for CVS Health Corp.
CVS Health Corp was recommended as a Top Pick by on . Read the latest stock experts ratings for CVS Health Corp.
Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.
32 stock analysts on Stockchase covered CVS Health Corp In the last year. It is a trending stock that is worth watching.
On 2025-04-01, CVS Health Corp (CVS-N) stock closed at a price of $67.98.
Is up 50.5% this year, benfitting from chief rival Walgreens are going private, and CVS' managed care business, Aetna, is putting up better numbers. CVS got too cheap last year, but mounted a comeback after hiring a new CEO. But it remains a drugstore chain, which he doesn't like, given Amazon's dominance.