Is CVS Health Stock a Good Investment?

CVS Health Investment Advice

  CVS
To provide specific investment advice or recommendations on CVS Health Corp stock, we recommend investors consider the following general factors when evaluating CVS Health Corp. This will help you to make an informed decision on whether to include CVS Health in one of your diversified portfolios:
  • Examine CVS Health's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
  • Research CVS Health's leadership team and their track record. Good management can help CVS Health navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
  • Consider the overall health of the Health Care Providers & Services space and any emerging trends that could impact CVS Health's business and its evolving consumer preferences.
  • Compare CVS Health's performance and market position to its competitors. Analyze how CVS Health is positioned in terms of product offerings, innovation, and market share.
  • Check if CVS Health pays a dividend and its dividend yield and payout ratio.
  • Review what financial analysts are saying about CVS Health's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in CVS Health Corp stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if CVS Health Corp is a good investment.
 
Sell
 
Buy
Strong Buy
Macroaxis provides unbiased investment recommendation on CVS Health Corp that should be used to complement current analysts and expert consensus on CVS Health Corp. Our trade advice engine determines the company's potential to grow exclusively from the perspective of an investors' current risk tolerance and investing horizon. To make sure CVS Health is not overpriced, please confirm all CVS Health Corp fundamentals, including its cash flow from operations, working capital, and the relationship between the cash per share and number of employees . Given that CVS Health Corp has a price to earning of 42.99 X, we suggest you to validate CVS Health Corp market performance and probability of bankruptcy to ensure the company can sustain itself next year given your prevailing risk tolerance and investing horizon.

Market Performance

OKDetails

Volatility

Very steadyDetails

Hype Condition

StaleDetails

Current Valuation

UndervaluedDetails

Odds Of Distress

LowDetails

Economic Sensitivity

Barely shadows the marketDetails

Investor Sentiment

ImpartialDetails

Analyst Consensus

BuyDetails

Financial Leverage

Not RatedDetails

Reporting Quality (M-Score)

UnavailableDetails

Examine CVS Health Stock

Researching CVS Health's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 83.0% of the company shares are held by institutions such as insurance companies. The company has price-to-book (P/B) ratio of 1.11. Some equities with similar Price to Book (P/B) outperform the market in the long run. CVS Health Corp has Price/Earnings To Growth (PEG) ratio of 2.11. The entity recorded earning per share (EPS) of 5.62. The firm last dividend was issued on the 21st of October 2024. CVS Health had 2:1 split on the 7th of June 2005.
To determine if CVS Health is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding CVS Health's research are outlined below:
CVS Health Corp has 79.39 B in debt with debt to equity (D/E) ratio of 1.0, which is OK given its current industry classification. CVS Health Corp has a current ratio of 0.92, suggesting that it has not enough short term capital to pay financial commitments when the payables are due. Note however, debt could still be an excellent tool for CVS to invest in growth at high rates of return.
Over 83.0% of CVS Health shares are held by institutions such as insurance companies
Latest headline from theweek.com: What went wrong at CVS

CVS Health Quarterly Good Will

91.27 Billion

CVS Health uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in CVS Health Corp. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to CVS Health's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
7th of February 2024
Upcoming Quarterly Report
View
1st of May 2024
Next Financial Report
View
31st of December 2023
Next Fiscal Quarter End
View
7th of February 2024
Next Fiscal Year End
View
30th of September 2023
Last Quarter Report
View
31st of December 2022
Last Financial Announcement
View
Earnings surprises can significantly impact CVS Health's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises CVS Health's investors have experienced.
Reported
Fiscal Date
Estimated EPS
Reported EPS
Surprise
1997-02-05
1996-12-310.10.110.0110 
1999-04-28
1999-03-310.190.210.0210 
1997-04-24
1997-03-310.110.130.0218 
2004-02-12
2003-12-310.290.320.0310 
1996-04-23
1996-03-31-0.050.030.08160 
2021-11-03
2021-09-301.781.970.1910 
2019-08-07
2019-06-301.691.890.211 
2022-08-03
2022-06-302.172.40.2310 

CVS Health Target Price Consensus

We track the performance of the top 100 financial experts across various large and mid-size financial boutiques. CVS target price is determined by taking all analyst projections and averaging them out. There is no one specific way to measure analysts' performance other than comparing it to past results via a very sophisticated attribution analysis. CVS Health's target price projections below should be used in combination with other traditional price prediction techniques such as stock price forecasting, investor sentiment analysis, technical analysis, earnings estimate, and various momentum models.
   28  Buy
Most CVS analysts issue ratings four times a year, at intervals of three months. Ratings are usually accompanied by a target price to help potential investors understand CVS stock's fair price compared to its market value. Analysts arrive at stock ratings after researching the public financial statements of CVS Health Corp, talking to its executives and customers, or listening to those companies' conference calls.
Macroaxis Advice   Exposure   Valuation

CVS Health Target Price Projection

CVS Health's current and average target prices are 65.90 and 90.16, respectively. The current price of CVS Health is the price at which CVS Health Corp is currently trading. On the other hand, CVS Health's target price is what analysts think the stock is worth or could sell for in the future. The more significant the discrepancy between the two prices, the more it stimulates investors to act.

Current Price

CVS Health Market Quote on 9th of October 2024

Low Price64.95Odds
High Price66.1Odds

65.9

Target Price

Analyst Consensus On CVS Health Target Price

Low Estimate82.05Odds
High Estimate100.08Odds

90.16

Historical Lowest Forecast  82.05 Target Price  90.16 Highest Forecast  100.08
Note that most analysts generally publish their price targets in research reports on specific companies, along with recommendations for the company's stock.Although price targets are often quoted in the financial news media, there could be a delay between the publication of the latest analyst outlook on CVS Health Corp and the information provided on this page.

CVS Health Analyst Ratings

CVS Health's analyst stock recommendations are determined by taking an average estimate of all analysts we track and classifying them as Strong Buy, Buy, Hold, Strong Sell, or Sell. Ratings generally communicate what analysts sense about CVS Health stock, and they use a lot of effort and time to analyze it and arrive at a rating. That suggests that analyst recommendations are the outcome of an objective and thorough examination of CVS Health's financials, market performance, and future outlook by experienced professionals. CVS Health's historical ratings below, therefore, can serve as a valuable tool for investors.

Know CVS Health's Top Institutional Investors

Have you ever been surprised when a price of an equity instrument such as CVS Health is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading CVS Health Corp backward and forwards among themselves. CVS Health's institutional investor refers to the entity that pools money to purchase CVS Health's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
Shares
Bank Of America Corp2024-06-30
14 M
Jpmorgan Chase & Co2024-06-30
13.9 M
Franklin Resources Inc2024-06-30
13.8 M
Pzena Investment Management, Llc2024-06-30
12.9 M
Northern Trust Corp2024-06-30
12.2 M
Amvescap Plc.2024-06-30
12.1 M
Charles Schwab Investment Management Inc2024-06-30
11.9 M
Legal & General Group Plc2024-06-30
11.4 M
T. Rowe Price Associates, Inc.2024-06-30
10.2 M
Vanguard Group Inc2024-06-30
116.4 M
Blackrock Inc2024-06-30
100.2 M
Note, although CVS Health's institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

CVS Health's market capitalization trends

The company currently falls under 'Large-Cap' category with a total capitalization of 82.9 B.

Market Cap

95.88 Billion

CVS Health's profitablity analysis

Last ReportedProjected for Next Year
Return On Tangible Assets 0.06  0.10 
Return On Capital Employed 0.08  0.08 
Return On Assets 0.03  0.06 
Return On Equity 0.11  0.12 
The company has Net Profit Margin of 0.02 %, which implies that it may need a different competitive strategy as even a very small decline in it revenue may erase profits and result in a net loss. This is way below average. In the same way, it shows Net Operating Margin of 0.03 %, which entails that for every 100 dollars of revenue, it generated $0.03 of operating income.
Determining CVS Health's profitability involves analyzing its financial statements and using various financial metrics to determine if CVS Health is a good buy. For example, gross profit margin measures CVS Health's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of CVS Health's profitability and make more informed investment decisions.
Please note, the imprecision that can be found in CVS Health's accounting process means that the reasonable investor should take a skeptical approach toward the financial statement analysis of CVS Health Corp. Check CVS Health's Beneish M Score to see the likelihood of CVS Health's management manipulating its earnings.

Evaluate CVS Health's management efficiency

CVS Health Corp has Return on Asset of 0.0287 % which means that on every $100 spent on assets, it made $0.0287 of profit. This is way below average. In the same way, it shows a return on shareholders' equity (ROE) of 0.0973 %, implying that it generated $0.0973 on every 100 dollars invested. CVS Health's management efficiency ratios could be used to measure how well CVS Health manages its routine affairs as well as how well it operates its assets and liabilities. At this time, CVS Health's Return On Tangible Assets are comparatively stable compared to the past year. Return On Assets is likely to gain to 0.06 in 2024, whereas Return On Capital Employed is likely to drop 0.08 in 2024. At this time, CVS Health's Intangibles To Total Assets are comparatively stable compared to the past year. Debt To Assets is likely to gain to 0.33 in 2024, whereas Other Assets are likely to drop slightly above 4.8 B in 2024.
Last ReportedProjected for Next Year
Book Value Per Share 59.64  62.62 
Tangible Book Value Per Share(34.14)(32.43)
Enterprise Value Over EBITDA 9.36  7.15 
Price Book Value Ratio 1.33  1.26 
Enterprise Value Multiple 9.36  7.15 
Price Fair Value 1.33  1.26 
Enterprise Value86.8 B91.1 B
The analysis of CVS Health's management efficiency is an essential part of evaluating and assessing the financial and operational performance of the entity. It is also vital to analyze CVS Health's future growth prospects and the overall market conditions to determine the value and potential of its stock. The analysis involves studying a range of financial metrics such as revenue, earnings, profit margins, cash flow, debt, market share, and external factors such as economic trends, industry outlook, competition, and government regulations. The goal of CVS Stock analysis is to determine whether it is undervalued, fairly valued, or overvalued and to make informed investment decisions.
Dividend Yield
0.0404
Forward Dividend Yield
0.0404
Forward Dividend Rate
2.66
Beta
0.532

Basic technical analysis of CVS Stock

As of the 9th of October, CVS Health shows the mean deviation of 1.36, and Risk Adjusted Performance of 0.1263. CVS Health Corp technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices. Please confirm CVS Health Corp variance, value at risk, as well as the relationship between the Value At Risk and skewness to decide if CVS Health Corp is priced some-what accurately, providing market reflects its regular price of 65.9 per share. Given that CVS Health has jensen alpha of 0.156, we suggest you to validate CVS Health Corp's prevailing market performance to make sure the company can sustain itself at some point in the future.

CVS Health's insider trading activities

Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific CVS Health insiders, such as employees or executives, is commonly permitted as long as it does not rely on CVS Health's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases CVS Health insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.

CVS Health's Outstanding Corporate Bonds

CVS Health issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. CVS Health Corp uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most CVS bonds can be classified according to their maturity, which is the date when CVS Health Corp has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.

Understand CVS Health's technical and predictive indicators

Using predictive indicators to make investment decisions involves analyzing CVS Health's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.

Consider CVS Health's intraday indicators

CVS Health intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of CVS Health stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.

CVS Health Corporate Filings

F3
19th of September 2024
The report used by insiders such as officers, directors, and major shareholders (beneficial owners holding more than 10% of any class of the company's equity securities) to declare their ownership of a company's stock
ViewVerify
F4
3rd of September 2024
The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities
ViewVerify
9th of August 2024
Other Reports
ViewVerify
8K
7th of August 2024
Report filed with the SEC to announce major events that shareholders should know about
ViewVerify
CVS Health time-series forecasting models is one of many CVS Health's stock analysis techniques aimed to predict future share value based on previously observed values. Time-series forecasting models ae widely used for non-stationary data. Non-stationary data are called the data whose statistical properties e.g. the mean and standard deviation are not constant over time but instead, these metrics vary over time. These non-stationary CVS Health's historical data is usually called time-series. Some empirical experimentation suggests that the statistical forecasting models outperform the models based exclusively on fundamental analysis to predict the direction of the market movement and maximize returns from investment trading.

CVS Stock media impact

Far too much social signal, news, headlines, and media speculation about CVS Health that are available to investors today. That information is available publicly through CVS media outlets and privately through word of mouth or via CVS internal channels. However, regardless of the origin, that massive amount of CVS data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of CVS Health news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of CVS Health relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to CVS Health's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive CVS Health alpha.

CVS Health Sentiment by Major News Outlets

Investor sentiment, mood or attitude towards CVS Health can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.

CVS Health Corp Historical Investor Sentiment

Investor biases related to CVS Health's public news can be used to forecast risks associated with an investment in CVS. The trend in average sentiment can be used to explain how an investor holding CVS can time the market purely based on public headlines and social activities around CVS Health Corp. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
CVS Health's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for CVS Health and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average CVS Health news discussions. The higher the estimate score, the more favorable the investor's outlook on CVS Health.

CVS Health Corporate Directors

Edward LudwigIndependent DirectorProfile
Mary SchapiroIndependent DirectorProfile
Fernando AguirreIndependent DirectorProfile
NancyAnn DeParleIndependent DirectorProfile

Additional 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.