What's Going On With CVS Health Stock?

CVS Health Corp CVS shares are trading marginally lower by 1.52% to $56.97 during Friday’s session. The stock has been muted since the company earlier this week reported worse-than-expected second-quarter sales results and cut its FY24 adjusted EPS guidance below estimates.

What Happened?

CVS posted sales of $91.23 billion, slightly below the $91.51 billion consensus, with total revenues up 2.6%, driven by growth in its Health Care Benefits and Pharmacy & Consumer Wellness segments, though offset by a decline in the Health Services segment.

Adjusted EPS was $1.83, down from $2.21 last year but above the $1.73 consensus. Operating income fell 16.4% to $3.74 billion. The Health Care Benefits segment’s revenues grew by 21.4%, while the Health Services segment’s revenues dropped by 8.8%.

Leadership changes were announced, with CEO Karen Lynch taking direct control of the Health Care Benefits segment. CVS revised its 2024 adjusted EPS guidance to $6.40-$6.65, down from at least $7.00, and lowered its cash flow guidance due to continued pressure in the Health Care Benefits segment.

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Is CVS A Good Stock To Buy?

Wall Street analysts view CVS Health on the whole as a Neutral, given the history of coverage over the past three months. Lisa Gill from JP Morgan in CVS Health is the most bearish, expecting a 14.85% fall in the stock in the coming year.

But looking at how the market as a whole thinks of the stock, you can reference historical price action for views on whether investors feel strongly about the stock one way or another. In the past 3 months, CVS Health rose 2.65%, which indicates that opinion improved on the business and how attractive it is to own based on either its stock price, or underlying fundamentals, like revenue, which rose 2.6% over the past year.

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CVS has a 52-week high of $83.25 and a 52-week low of $52.77.