Cvs Health Corp Stock Alpha and Beta Analysis

CVS Stock  USD 79.43  0.11  0.14%   
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as CVS Health Corp. It also helps investors analyze the systematic and unsystematic risks associated with investing in CVS Health over a specified time horizon. Remember, high CVS Health's alpha is almost always a sign of good performance; however, a high beta will depend on investors' risk tolerance level and may signal increased volatility and potential future overvaluation. Key technical indicators related to CVS Health's market risk premium analysis include:
Beta
(0.08)
Alpha
0.0366
Risk
1.26
Sharpe Ratio
0.0257
Expected Return
0.0324
Please note that although CVS Health alpha is a measure of relative return and represented here as a single number, it indicates the percentage above or below your selected benchmark (i.e., NYSE Composite index.) So in this particular case, CVS Health did 0.04  better than the index. Remember, a high alpha is always good. Beta, on the other hand, measures the volatility (or risk) of an investment. It is an indication of CVS Health Corp stock's relative risk over its benchmark. CVS Health Corp has a beta of 0.08  . As returns on the market increase, returns on owning CVS Health are expected to decrease at a much lower rate. During the bear market, CVS Health is likely to outperform the market. Price Book Value Ratio is likely to drop to 1.26 in 2024. Enterprise Value Multiple is likely to drop to 7.14 in 2024.

CVS Health Quarterly Cash And Equivalents

13.04 Billion

Alpha is a measure of relative performance on a risk-adjusted basis, while beta measures volatility against the benchmark. The goal is to know if an investor is being compensated for the volatility risk taken. The return on investment might be better than its reference but still not compensate for the assumption of the risk.
  
Check out CVS Health Backtesting, CVS Health Valuation, CVS Health Correlation, CVS Health Hype Analysis, CVS Health Volatility, CVS Health History and analyze CVS Health Performance.

CVS Health Market Premiums

Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. CVS Health market risk premium is the additional return an investor will receive from holding CVS Health long position in a well-diversified portfolio. The market premium is part of the Capital Asset Pricing Model (CAPM), which most analysts and investors use to calculate the acceptable rate of return on investment in CVS Health. At the center of the CAPM is the concept of risk and reward, which is usually communicated by investors using alpha and beta measures. Alpha and beta are two of the key measurements used to evaluate CVS Health's performance over market.
α0.04   β-0.08

CVS Health expected buy-and-hold returns

Although buy-and-hold investment strategy may not appeal to all investors, it may be used as a good measure of CVS Health's Buy-and-hold return. Our buy-and-hold chart shows how CVS Health performed over your current time horizon against a typical interest-earning bank account and a selected benchmark.

CVS Health Market Price Analysis

Market price analysis indicators help investors to evaluate how CVS Health stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading CVS Health shares will generate the highest return on investment. By understating and applying CVS Health stock market price indicators, traders can identify CVS Health position entry and exit signals to maximize returns.

CVS Health Return and Market Media

The median price of CVS Health for the period between Fri, Dec 29, 2023 and Thu, Mar 28, 2024 is 76.42 with a coefficient of variation of 2.9. The daily time series for the period is distributed with a sample standard deviation of 2.21, arithmetic mean of 76.37, and mean deviation of 1.85. The Stock received a lot of media exposure during the period.
 Price Growth (%)  
       Timeline  
 
CVS Health dividend paid on 1st of February 2024
02/01/2024
1
Disposition of 6698 shares by Laurie Havanec of CVS Health at 76.43 subject to Rule 16b-3
02/26/2024
2
Ransomware gang claims they stole 6TB of Change Healthcare data
02/28/2024
3
CVS Health Co. Shares Bought by Lake Street Advisors Group LLC
03/05/2024
4
AM Best Affirms Credit Ratings of Most of CVS Health Corporations Aetna Inc. Subsidiaries Withdraws Credit Ratings of Members of Texas Health Aetna
03/13/2024
5
Disposition of 33402 shares by Thomas Cowhey of CVS Health at 74.31 subject to Rule 16b-3
03/15/2024
6
Spotlight on CVS Health Analyzing the Surge in Options Activity
03/18/2024
7
Elevance to buy Krogers specialty pharmacy
03/19/2024
8
STAT Pharmalittle Were reading about Europes pharma reform, weight-loss meds, and more
03/20/2024
9
Behind the Scenes of CVS Healths Latest Options Trends
03/22/2024
10
NC coverage of obesity drugs ends April 1. Here are alternatives.
03/25/2024

About CVS Health Beta and Alpha

For many years both, Alpha and Beta indicators are used by professional money managers as critical performance measurement tools across virtually all financial instruments including CVS or other stocks. Alpha measures the amount that position in CVS Health Corp has returned in comparison to a selected market index or another relevant benchmark. In other words, Alpha is the excess return on an investment relative to the performance of your selected benchmark. Beta, on the other hand, measures the relative risk of your investment.
 2021 2023 2024 (projected)
Dividend Yield0.01930.03090.0243
Price To Sales Ratio0.470.280.27

CVS Health Upcoming Company Events

As portrayed in its financial statements, the presentation of CVS Health's financial position is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, CVS Health's leadership is honest, while the outside auditors are strict and uncompromising. Whatever the case, investors should always follow all of CVS Health's public filing events to personally review all filings and be reasonable and skeptical to interpret all of the financial statements of CVS Health. Please utilize our Beneish M Score to check the likelihood of CVS Health's management manipulating its earnings.
7th of February 2024
Upcoming Quarterly Report
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1st of May 2024
Next Financial Report
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31st of December 2023
Next Fiscal Quarter End
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7th of February 2024
Next Fiscal Year End
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30th of September 2023
Last Quarter Report
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31st of December 2022
Last Financial Announcement
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When determining whether CVS Health Corp is a strong investment it is important to analyze CVS Health's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact CVS Health's future performance. For an informed investment choice regarding CVS Stock, refer to the following important reports:

Complementary Tools for CVS Stock analysis

When running CVS Health's price analysis, check to measure CVS Health's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy CVS Health is operating at the current time. Most of CVS Health's value examination focuses on studying past and present price action to predict the probability of CVS Health's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move CVS Health's price. Additionally, you may evaluate how the addition of CVS Health to your portfolios can decrease your overall portfolio volatility.
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CVS Health technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.
A focus of CVS Health technical analysis is to determine if market prices reflect all relevant information impacting that market. A technical analyst looks at the history of CVS Health trading pattern rather than external drivers such as economic, fundamental, or social events. It is believed that price action tends to repeat itself due to investors' collective, patterned behavior. Hence technical analysis focuses on identifiable price trends and conditions. More Info...