Why CVS Health Shares Are Rising

CVS Health Corp CVS shares are trading higher by 2.43% to $74.06 Wednesday morning. Shares of healthcare stocks are trading higher in sympathy with Elevance Health, which reported better-than-expected second-quarter financial results and raised guidance.

What Happened?

Elevance Health has announced adjusted second-quarter EPS of $9.04, reflecting a 13.4% year-over-year increase and surpassing the consensus estimate of $8.80. Furthermore, the company experienced a 13% growth in revenue, reaching $43.67 billion, exceeding the projected figure of $41.50 billion.

This increase can be attributed to premium rate increases in the Health Benefits business, higher premium revenue resulting from membership growth in Medicaid and Medicare, as well as the expansion of pharmacy product revenue through the acquisition of BioPlus in Q1 2023 and the growth of external pharmacy members served by CarelonRx...Read More

According to data from Benzinga Pro, CVS has a 52-week high of $107.26 and a 52-week low of $66.34.