CVS Stock Fluctuations and Support Level Analysis
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1d ago
0mins
Source: Benzinga
- Stock Price Drop: CVS Health's shares remained flat on Wednesday after a nearly 15% drop on Tuesday due to Medicare proposing rates significantly below expectations, indicating market concerns about the company's future earnings.
- Support Level Analysis: Analysts suggest that if CVS shares continue to decline, they may find support around $70, a critical price level viewed as a potential buying opportunity that could attract repurchases.
- Market Dynamics: Successful traders recognize support and resistance levels, and CVS's stock forming support at $70 may prompt remorseful sellers to buy back shares, potentially driving a price rebound.
- Investor Sentiment: Some investors who sold near $70 may place buy orders when the stock dips back, creating new support; this shift in sentiment could significantly influence CVS's short-term stock performance.
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Analyst Views on CVS
Wall Street analysts forecast CVS stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for CVS is 96.71 USD with a low forecast of 91.00 USD and a high forecast of 105.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
17 Analyst Rating
16 Buy
1 Hold
0 Sell
Strong Buy
Current: 74.030
Low
91.00
Averages
96.71
High
105.00
Current: 74.030
Low
91.00
Averages
96.71
High
105.00
About CVS
CVS Health Corporation is a health solutions company. The Company's segments include Health Care Benefits, Health Services, Pharmacy & Consumer Wellness and Corporate/Other. Health Care Benefits segment offers a broad range of traditional, voluntary and consumer-directed health insurance products and related services, including medical, pharmacy, dental and behavioral health plans, PDPs and Medicaid health care management services. Health Services segment provides a full range of pharmacy benefit management (PBM) solutions through its CVS Caremark operations and delivers health care services in its medical clinics, virtually, and in the home. Pharmacy & Consumer Wellness segment dispenses prescriptions in its CVS Pharmacy retail locations and through its infusion operations, provides ancillary pharmacy services including pharmacy patient care programs, diagnostic testing and vaccination administration, and sells a wide assortment of health and wellness products and general merchandise.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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