Tech Stocks Rebound, Broadcom Rating Upgraded
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 16h ago
0mins
Should l Buy CVS?
Source: CNBC
- Market Rebound: After a tough week, tech stocks rebounded on Friday, although Amazon pulled back post-earnings, with the S&P 500 and Nasdaq still lower for the week, indicating ongoing volatility and investor focus on the tech sector.
- Surge in Capital Expenditures: Meta's capital expenditures reached $72.22 billion for the full year 2025, with plans to invest up to $135 billion in 2026, reflecting strong demand for AI infrastructure that is expected to boost earnings and backlogs for various companies.
- Broadcom Rating Upgrade: Given the capital expenditure plans from Alphabet and Meta, Broadcom's rating has been upgraded to buy, with expectations that it will exceed earnings estimates, and the current stock pullback presents an attractive entry point, showcasing confidence in the semiconductor sector.
- Economic Data Focus: Important economic data will be released next week, including the January employment report, with economists expecting nonfarm job gains of about 70,000 and an unchanged unemployment rate of 4.4%, as the market remains sensitive to changes in the employment landscape.
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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: 76.330
Low
91.00
Averages
96.71
High
105.00
Current: 76.330
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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- Discounted Drug Range: Initially, discounts are available for 43 drugs from five pharmaceutical companies, including AstraZeneca, Eli Lilly, EMD Serono, Novo Nordisk, and Pfizer, which is expected to attract more consumers to utilize CVS's services.
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- Discounted Drug Range: Initially, discounts are available for 43 drugs from five pharmaceutical companies, including AstraZeneca, Eli Lilly, EMD Serono, Novo Nordisk, and Pfizer, which is expected to attract more consumers to utilize CVS's services.
- Convenient Access Methods: Consumers can either search for drug prices on TrumpRx.gov and complete transactions or use coupon cards at participating pharmacies, streamlining the purchasing process and enhancing user experience.
- CVS and Novo Nordisk Partnership: CVS also serves as a retail pharmacy partner for Novo Nordisk's NovoCare Pharmacy, further solidifying its position in the prescription drug market and providing patients with more options.
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- Layoff Announcement: Aetna CVS Health issued a WARN notice indicating plans to lay off 313 employees in Hartford, Connecticut, between April and July 2026, with only 17 being local residents, highlighting operational adjustments in the Small Group business segment.
- Layoff Context: This reduction is part of CVS Health's broader $2 billion cost-cutting initiative announced in 2024, aiming to streamline operations by eliminating 2,900 roles, reflecting the company's strategic response to market dynamics.
- Retail Business Contraction: In 2024, CVS Health closed 299 stores and plans to close an additional 271 in 2025, indicating a strategic shift towards reducing physical retail density in response to consumer trends favoring digital purchases.
- Market Performance Recovery: Despite the challenges of layoffs and restructuring, CVS Health's stock rose 2.8% on February 6, 2026, marking a 5% gain over the week, demonstrating market confidence in its long-term strategy.
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- CVS Health Earnings Outlook: CVS Health is set to report quarterly results on Tuesday, and despite being affected by the Trump administration's proposed reimbursement rates for Medicare Advantage, Cramer believes CEO David Joyner's management is impressive and the stock is worth owning.
- DuPont Performance Highlights: DuPont's earnings report on the same day is expected to showcase CEO Lori Koch's success in improving the company's performance, with the stock soaring 58% over the past six months, reflecting the effectiveness of its electronics business spin-off strategy.
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- Dow 50K Discussion: The article focuses on the potential for the Dow Jones Industrial Average to reach the 50,000 mark, highlighting the factors that could contribute to this milestone.
- Investor Sentiment: Despite recent difficulties, there is a renewed sense of hope and positive sentiment in the market, suggesting a possible recovery.
- Future Outlook: Analysts are considering the implications of reaching the Dow 50K and what it could mean for the broader economy and investment strategies.
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- Job Data Focus: Cramer emphasized the importance of the nonfarm payroll report due next Wednesday, suggesting that a soft reading could lead the Fed to continue cutting rates, which would positively impact the stock market and reflect market expectations of economic slowdown.
- Earnings Reports Ahead: Several companies, including CVS Health, Robinhood, and DuPont, are set to report earnings next week; Cramer believes CVS is the only drug retailer worth owning amid Medicare reform, showcasing its competitive edge in the market.
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