Demystifying CVS Health: Insights From 5 Analyst Reviews

Providing a diverse range of perspectives from bullish to bearish, 5 analysts have published ratings on CVS Health CVS in the last three months.

The following table provides a quick overview of their recent ratings, highlighting the changing sentiments over the past 30 days and comparing them to the preceding months.

Analysts have set 12-month price targets for CVS Health, revealing an average target of $90.4, a high estimate of $99.00, and a low estimate of $84.00. A decline of 3.83% from the prior average price target is evident in the current average.

Understanding Analyst Ratings: A Comprehensive Breakdown

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: Gaining insights, analysts provide estimates for the future value of CVS Health's stock. This comparison reveals trends in analysts' expectations over time.

Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of CVS Health's market position. Stay informed and make well-judged decisions with the assistance of 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 displayed positive results in 3 months. As of 31 December, 2023, the company achieved a solid revenue growth rate of approximately 11.89%. This indicates a notable increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Health Care sector.

Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 2.18%, the company showcases strong profitability and effective cost control.

Return on Equity (ROE): CVS Health's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 2.71% ROE, the company effectively utilizes shareholder equity capital.

Return on Assets (ROA): CVS Health's ROA stands out, surpassing industry averages. With an impressive ROA of 0.82%, the company demonstrates effective utilization of assets and strong financial performance.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 1.04.

How Are Analyst Ratings Determined?

Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.

Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

If you want to keep track of which analysts are outperforming others, you can view updated analyst ratings along withanalyst success scores in Benzinga Pro.

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