Beyond The Numbers: 11 Analysts Discuss CVS Health Stock

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During the last three months, 11 analysts shared their evaluations of CVS Health CVS, revealing diverse outlooks from bullish to bearish.

The table below summarizes their recent ratings, showcasing the evolving sentiments within the past 30 days and comparing them to the preceding months.

Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish
Total Ratings 5 6 0 0 0
Last 30D 1 3 0 0 0
1M Ago 0 1 0 0 0
2M Ago 1 0 0 0 0
3M Ago 3 2 0 0 0

The 12-month price targets, analyzed by analysts, offer insights with an average target of $69.55, a high estimate of $80.00, and a low estimate of $60.00. This current average has increased by 5.09% from the previous average price target of $66.18.

price target chart

Understanding Analyst Ratings: A Comprehensive Breakdown

The standing of CVS Health among financial experts becomes clear with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Analyst Analyst Firm Action Taken Rating Current Price Target Prior Price Target
Stephen Baxter Wells Fargo Raises Overweight $73.00 $68.00
David Macdonald Truist Securities Raises Buy $76.00 $60.00
Andrew Mok Barclays Raises Overweight $73.00 $71.00
Michael Cherny Leerink Partners Raises Outperform $75.00 $55.00
Elizabeth Anderson Evercore ISI Group Raises Outperform $65.00 $60.00
David Macdonald Truist Securities Lowers Buy $60.00 $67.00
George Hill Deutsche Bank Maintains Buy $66.00 $66.00
Charles Ryhee TD Cowen Raises Buy $80.00 $73.00
Jessica Tassan Piper Sandler Lowers Overweight $64.00 $72.00
David Macdonald Truist Securities Lowers Buy $67.00 $76.00
Stephen Baxter Wells Fargo Raises Overweight $66.00 $60.00

Key Insights:

  • Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to CVS Health. This information offers a snapshot of how analysts perceive the current state of the company.
  • Rating: Analyzing trends, analysts offer qualitative evaluations, ranging from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of CVS Health compared to the broader market.
  • Price Targets: Understanding forecasts, analysts offer estimates for CVS Health's future value. Examining the current and prior targets provides insight into analysts' changing expectations.

Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into CVS Health's market standing. Stay informed and make well-considered decisions with our Ratings Table.

Stay up to date on CVS Health analyst ratings.

Get to Know CVS Health Better

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 us. CVS is also a large pharmacy benefit manager (acquired through Caremark), processing about 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.

CVS Health's Economic Impact: An Analysis

Market Capitalization Analysis: Above industry benchmarks, the company's market capitalization emphasizes a noteworthy size, indicative of a strong market presence.

Revenue Growth: CVS Health displayed positive results in 3 months. As of 30 September, 2024, the company achieved a solid revenue growth rate of approximately 6.31%. This indicates a notable increase in the company's top-line earnings. When compared to others in the Health Care sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: The company's net margin is below industry benchmarks, signaling potential difficulties in achieving strong profitability. With a net margin of 0.09%, the company may need to address challenges in effective cost control.

Return on Equity (ROE): CVS Health's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of 0.12%, the company may face hurdles in achieving optimal financial performance.

Return on Assets (ROA): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of 0.03%, the company may need to address challenges in generating satisfactory returns from its assets.

Debt Management: CVS Health's debt-to-equity ratio is below the industry average. With a ratio of 1.1, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

Analyst Ratings: What Are They?

Analyst ratings serve as essential indicators of stock performance, provided by experts in banking and financial systems. These specialists diligently analyze company financial statements, participate in conference calls, and engage with insiders to generate quarterly ratings for individual stocks.

Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.

Which Stocks Are Analysts Recommending Now?

Benzinga Edge gives you instant access to all major analyst upgrades, downgrades, and price targets. Sort by accuracy, upside potential, and more. Click here to stay ahead of the market.

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

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