CVS Stock Approaches Q4 Earnings With Resistance In Sight

CVS Health Corp CVS will be reporting its fourth-quarter earnings on Wednesday. Wall Street expects 94 cents in EPS and $97.20 billion in revenues as the company reports before market hours.

The stock is down 29.78% over the past year, up 22.72% YTD.

Let’s look at what the charts indicate for CVS stock and how the stock currently maps against Wall Street estimates.

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CVS Stock Chart Bullish Ahead Of Q4 Earnings

CVS stock’s current trend shows a strong bullish outlook, with the stock price trading above its five, 20, and 50-day exponential moving averages. This indicates buying pressure, which is a positive signal for future bullish movements.

Chart created using Benzinga Pro

However, technical signals present a mixed picture. CVS stock, at $54.34, trades below the eight-day simple moving average (SMA) of $55.17, signaling a bearish trend in the short term. Similarly, the 20-day SMA of $54.54 also signals a bearish stance, although this one is at a narrow margin.

On the positive side, the stock is above its 50-day SMA of $51.58, which is a bullish indicator. The Moving Average Convergence Divergence (MACD) is currently at 1.18, reinforcing a bullish sentiment. Furthermore, CVS Health’s Relative Strength Index (RSI) stands at 55.03, indicating that the stock is neither overbought nor oversold, leaving room for potential upward movement.

However, the stock price remains below its 200-day SMA of $56.98, which introduces some resistance.

Overall, while CVS Health has strong bullish signals in the short and medium term, resistance from longer-term averages may limit the upside until the stock decisively clears these levels. Investors should be mindful of the mixed signals and monitor for a break above key resistance points.

CVS Analysts See 17% Upside

Ratings & Consensus Estimates: The consensus analyst rating on CVS stock stands at a Buy currently with a price target of $78.63. Analysts from Evercore ISI Group, Truist Securities and Deutsche Bank recently released ratings for CVS stock, with an average price target of $63.67. This suggests a potential 17% upside for the stock.

CVS Stock Price Action: CVS stock was trading 0.11% lower at $54.25 at the time of publication Tuesday.

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