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CVS Health Corporation (CVS), with a market cap of $83.15 billion, provides health solutions in the United States. Headquartered in Woonsocket, Rhode Island, the company offers traditional, voluntary, and consumer-directed health insurance products and related services, including medical, pharmacy, dental and behavioral health plans, medical management capabilities, Medicare Advantage, and Medicare Supplement plans.
Companies valued at $10 billion or more are generally classified as “large-cap” stocks, and CVS fits this criterion perfectly, exceeding the mark. As a key player in the healthcare industry, CVS benefits from long-term stability and steady revenue growth.
But it’s not all sunshine and rainbows for the stock as it has fallen 19.2% from its 52-week high of $80.75, recorded on March 28. Over the past three months, CVS shares have surged 18%, compared to the S&P 500 Index ($SPX), which declined 5.8% during the same period.
CVS shares have surged 13% over the past six months and declined 12.2% over the past 52 weeks. By contrast, $SPX has surged 6.1% over the past six months and 12.4% over the past 52 weeks.
CVS has been trading above its 50-day moving average since mid-January and above its 200-day moving average since mid-February.
CVS stock surged 5% following its Q4 earnings release on February 13. CVS announced a 4.2% increase in its total revenues, which amounted to $97.7 billion. Moreover, its EPS came in at $1.19, surpassing the Wall Street EPS estimates by 33.7%.
Its top rival, The Cigna Group (CI), has lagged behind, with its stock declining 10.7% over the past six months and 7.1% over the past 52 weeks.
Wall Street analysts are extremely hopeful for CVS, with a consensus rating of "Strong Buy" from 23 analysts. Its mean price target of $71.68 implies a potential upside of 9.9% from the current market prices.
