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With a market cap of $73.6 billion, CVS Health Corporation (CVS) is a leading player in the healthcare sector, delivering a wide range of pharmacy and health services across the U.S. Based in Woonsocket, Rhode Island, the company is expected to announce its fiscal Q2 earnings results before the market opens on Wednesday, Aug. 7.
Ahead of the event, analysts expect CVS Health to report a profit of $1.74 per share, down 21.3% from $2.21 per share in the year-ago quarter. The company has surpassed Wall Street's bottom-line estimates in three of the past four quarters while missing on one other occasion. In Q1, the company reported an EPS of $1.31, missing the consensus estimates by a 22.5% margin.
For fiscal 2024, analysts expect CVS to report an EPS of $7.00, down 19.9% from $8.74 in fiscal 2023. However, EPS is expected to rebound with a 10.7% year-over-year growth to $7.75 in fiscal 2025.
Shares of CVS Health have declined 22.5% over the past 52 weeks, underperforming both the S&P 500 Index's ($SPX) 18.2% rise and the S&P 500 Healthcare Sector SPDR's (XLV) 9.7% increase over the same period.
CVS Health's stock plunged a notable 16.8% on May 1 due to disappointing Q1 earnings results and a sharp cut in its full-year guidance. The decline was driven by soaring Medicare costs and a drop in Medicare Advantage star ratings, which significantly impacted the healthcare benefits segment, leading to a steep cut in the company's full-year adjusted EPS forecast.
Analysts' consensus view on CVS Health stock is cautiously optimistic, with a "Moderate Buy" rating overall. Among 24 analysts covering the stock, 10 recommend a "Strong Buy," three suggest a "Moderate Buy," and 11 give a "Hold" rating. This configuration is less bullish than three months ago, with 13 analysts suggesting a "Strong Buy."
The average analyst price target for CVS is $69.91, suggesting a potential upside of 19.2% from the current levels.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
