
CVS Health (CVS) Stock Forecast & Price Target
CVS Health (CVS) Analyst Ratings
Bulls say
CVS Health reported a robust Health Services revenue of $49.27 billion, reflecting an 11.6% year-over-year growth that exceeded expectations, driven by a favorable pharmacy drug mix and brand inflation. The company's Retail pharmacy segment also demonstrated strong performance, with revenue of $36.21 billion, an 11.7% year-over-year increase fueled by rising prescription volumes, leading to positive trends in customer growth and retail market share in the front store. Furthermore, the acquisition of Oak Street Health is expected to enhance synergies across CVS's existing business lines, contributing to an optimistic outlook for long-term growth in both Healthcare Delivery and Pharmacy and Consumer Wellness segments.
Bears say
The analysis reveals a negative outlook for CVS Health based on key financial metrics indicating significant challenges ahead. Specifically, the company's EPS growth is projected to be approximately 5% below current estimates due to headwinds in Medicare Advantage utilization, alongside a 7% year-over-year decline in segment adjusted operating income and a decrease in claims processed by 1.8%. Additionally, CVS's valuation is anticipated to decline to 9.8x, reflecting the market's apprehension regarding membership losses, regulatory scrutiny, and increasing competition, which could all contribute to the erosion of its market share and financial stability.
This aggregate rating is based on analysts' research of CVS Health and is not a guaranteed prediction by Public.com or investment advice.
CVS Health (CVS) Analyst Forecast & Price Prediction
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