Headquartered in Woonsocket, Rhode Island, CVS Health Corporation (CVS) is a healthcare platform that spans retail pharmacies, pharmacy benefits management through CVS Caremark, specialty pharmacy services, and walk-in care clinics via MinuteClinic. The company also delivers health insurance through Aetna and supports seniors through Oak Street Health.
“Large-cap” companies, typically valued above $10 billion, tend to anchor investor expectations through scale and stability. CVS Health firmly fits the category with a market cap of nearly $101.4 billion, supported by its strategic focus on integrated care, telehealth expansion, and cost-efficient services.
CVS shares currently trade 6.2% below their October high of $85.15. Even so, the stock has gained 11.6% over the past three months, narrowing the gap with the S&P 500 Healthcare Sector SPDR (XLV), which advanced 15.6% during the same period.
Over a longer horizon, CVS has shown clearer leadership. The stock has climbed 35.3% over the past 52 weeks and 77.9% year-to-date (YTD), far outpacing XLV’s respective gains of 8.4% and 15.2%.
The technical backdrop remains constructive. Since mid-August, CVS has been trading consistently above its 50-day moving average, with only brief pullbacks. It also remains above the 200-day moving average since early August, signaling sustained strength across both intermediate and long-term trends.
However, the stock saw a momentary setback following the company’s Q3 fiscal 2025 earnings release on Oct. 29, when the stock fell nearly 2% and then almost 5% the next day. The decline was driven by a $5.7 billion non-cash goodwill impairment charge in the Health Care Delivery segment, which overshadowed otherwise strong quarterly results and an improved full-year outlook.
Keeping that aside, Q3 revenue reached $102.9 billion, exceeding Street’s expectations of $98.3 billion and improving 7.8% year over year (YoY). Adjusted EPS rose 46.8% from the year-ago value to $1.60, and came in ahead of Wall Street’s estimate.
Also, management raised its full-year 2025 adjusted EPS guidance to a range of $6.55 to $6.65, up from $6.30 to $6.40, and updated its cash-flow-from-operations target to a range of $7.5 billion to $8 billion from at least $7.5 billion
Sector comparisons further emphasize CVS’ strength. Centene Corporation (CNC), a direct competitor, has declined 34.2% over the past 52 weeks and 34.9% YTD, highlighting CVS’ superior positioning and execution.
Analysts share this view. CVS carries a “Strong Buy” consensus rating from 24 analysts, and its mean price target of $91.56 implies a premium of 14.7% to current levels.
On the date of publication, Sristi Jayaswal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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