Where CVS Health Stands With Analysts

CVS Health CVS has been analyzed by 6 analysts in the last three months, revealing a diverse range of perspectives 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.

Analysts provide deeper insights through their assessments of 12-month price targets, revealing an average target of $87.5, a high estimate of $94.00, and a low estimate of $78.00. This current average has decreased by 2.23% from the previous average price target of $89.50.

Understanding Analyst Ratings: A Comprehensive Breakdown

A comprehensive examination of how financial experts perceive CVS Health is derived from recent analyst actions. The following is a detailed summary of key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to CVS Health. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Gaining insights, analysts provide qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of CVS Health compared to the broader market.
• Price Targets: Analysts provide insights into price targets, offering estimates for the future value of CVS Health's stock. This comparison reveals trends in analysts' expectations over time.

For valuable insights into CVS Health's market performance, consider these analyst evaluations alongside crucial financial indicators. Stay well-informed and make prudent decisions using our Ratings Table.

Stay up to date on CVS Health analyst ratings.

All You Need to Know About CVS Health

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.

CVS Health's Financial Performance

Market Capitalization: Boasting an elevated market capitalization, the company surpasses industry averages. This signals substantial size and strong market recognition.

Revenue Growth: Over the 3 months period, CVS Health showcased positive performance, achieving a revenue growth rate of 11.89% as of 31 December, 2023. This reflects a substantial increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Health Care sector.

Net Margin: CVS Health's net margin excels beyond industry benchmarks, reaching 2.18%. This signifies efficient cost management and strong financial health.

Return on Equity (ROE): CVS Health's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 2.71%, the company showcases efficient use of equity capital and strong financial health.

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: CVS Health's debt-to-equity ratio is below the industry average. With a ratio of 1.04, 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?

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 also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.

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