Critical Insights From CVS Health Analyst Ratings: What You Need To Know

4 analysts have shared their evaluations of CVS Health CVS during the recent three months, expressing a mix of bullish and bearish perspectives.

The table below provides a concise overview of recent ratings by analysts, offering insights into the changing sentiments over the past 30 days and drawing comparisons with the preceding months for a holistic perspective.

Analysts have recently evaluated CVS Health and provided 12-month price targets. The average target is $91.0, accompanied by a high estimate of $99.00 and a low estimate of $84.00. A 3.19% drop is evident in the current average compared to the previous average price target of $94.00.

Decoding Analyst Ratings: A Detailed Look

A clear picture of CVS Health's perception among financial experts is painted with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to CVS Health. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Analysts unravel qualitative evaluations for stocks, ranging from 'Outperform' to 'Underperform'. These ratings offer insights into expectations for the relative performance of CVS Health compared to the broader market.
• Price Targets: Delving into movements, analysts provide estimates for the future value of CVS Health's stock. This analysis reveals shifts in analysts' expectations over time.

Considering these analyst evaluations in conjunction with other financial indicators can offer a comprehensive understanding of CVS Health's market position. Stay informed and make well-informed decisions with our Ratings Table.

Stay up to date on CVS Health analyst ratings.

Delving into CVS Health's Background

CVS Health offers a diverse set of healthcare services. Its roots are in its retail pharmacy operations, where it operates over 9,000 stores primarily in the U.S. CVS is also the largest pharmacy benefit manager (acquired through Caremark), processing over 2 billion adjusted claims annually. It also operates a top-tier health insurer (acquired through Aetna) where it serves about 26 million medical members. The company's recent acquisition of Oak Street adds primary care services to the mix, which could have significant synergies with all its existing business lines.

A Deep Dive into CVS Health's Financials

Market Capitalization: Exceeding industry standards, the company's market capitalization places it above industry average in size relative to peers. This emphasizes its significant scale and robust market position.

Revenue Growth: CVS Health's remarkable performance in 3 months is evident. As of 30 September, 2023, the company achieved an impressive revenue growth rate of 10.6%. This signifies a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Health Care sector.

Net Margin: CVS Health's net margin is impressive, surpassing industry averages. With a net margin of 2.52%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): CVS Health's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 3.07% ROE, the company effectively utilizes shareholder equity capital.

Return on Assets (ROA): CVS Health's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 0.9% ROA, the company effectively utilizes its assets for optimal returns.

Debt Management: CVS Health's debt-to-equity ratio is below the industry average. With a ratio of 1.08, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

Understanding the Relevance of Analyst Ratings

Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.

Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.

This article was generated by Benzinga's automated content engine and reviewed by an editor.