Stock Price & Analysis

Based on the recent data and news, here's a comprehensive analysis of CVS stock:

Recent Performance and Key Events

The stock closed at $63.48 on February 21, 2025, down 2.47% in regular trading hours [Relevant Data]. Recent significant events include:

• Strong Q4 2024 earnings beat with adjusted EPS of $1.19 vs $0.92 expected
• Management's 2025 guidance of $5.75-$6.00 adjusted EPS
• Recent bonus cuts announcement due to not meeting 2024 financial goals
• Notable insider purchase: Director Michael Mahoney bought 30,000 shares at $66.70 ($2M total)

Fundamental Analysis

Key metrics show:

• Forward P/E of ~11x, well below healthcare sector average of 18x
• Dividend yield of 2.42%
• Revenue growth of 6.31% in recent quarter
• Current ratio of 0.95, indicating some liquidity pressure

Analyst Sentiment

Recent analyst actions have been largely positive:

• Leerink Partners upgraded to Outperform with $75 target
• 17 out of 29 analysts rate CVS as Buy/Strong Buy
• Average price target of $69.55, with range of $60-$80

Investment Thesis

Bullish Factors:

• Valuation appears attractive relative to peers
• Strong insider buying signal
• Management's cost-cutting initiatives
• Stabilization in Aetna segment

Bearish Factors:

• Ongoing Medicare Advantage challenges
• Recent bonus cuts indicate performance issues
• Industry-wide PBM scrutiny
• Below-average liquidity metrics

Conclusion

While CVS faces near-term headwinds, the combination of attractive valuation, insider buying, and analyst upgrades suggests the stock could be a buy at current levels. The 2025 guidance indicates management expects operational improvement, though investors should monitor Medicare Advantage trends and PBM developments.

Based on the provided data and recent market developments, I'll analyze CVS Health's potential price for 2025.

Price Target Analysis for 2025:

CVS Health is expected to reach $73-76 by end of 2025, driven by improving Medicare Advantage margins and successful implementation of CostVantage pricing model. Multiple analysts have recently upgraded their price targets, with consensus ranging from $60 to $80, averaging around $69.55.

Key Drivers Supporting This Prediction:

1. Operational Improvements:

• Medicare Advantage margins expected to improve from -4.5/-5.0% in 2024
• Each 1% margin improvement adds approximately $0.75 to adjusted EPS
• 2025 revenue projected at minimum $134 billion, exceeding previous $128 billion estimate

2. Recent Performance Indicators:

• Q4 2024 showed better-than-expected results with $97.71 billion revenue
• Management provided strong 2025 guidance with adjusted EPS of $5.75-$6.00
• CostVantage implementation gaining traction across commercial contracts

3. Analyst Consensus:

• Multiple analysts have recently upgraded their targets:
  • Truist Securities: $76 (from $60)
  • Leerink Partners: $75 (from $55)
  • Barclays: $73 (from $71)
  • Wells Fargo: $73 (from $68)

The stock price prediction of $73-76 by end of 2025 is based on improving operational metrics, successful business transformation initiatives, and strong analyst consensus.

The S1 support level for CVS Stock is $56.65 ,The R1 resistant level for CVS Stock is $66.79.

As of the end of day on 2025-02-26, the price of CVS Stock was $63.54.

The target price for CVS Stock according to analyst rating is 71.83, with the highest price target at 81.00 and the lowest at 51.00. Analysts have a Strong Buy rating on CVS Stock overall.

The market cap of CVS is $80.3B.

Based on the provided data and recent market developments, I'll analyze if CVS is overvalued through multiple key aspects:

Valuation Metrics

• Current P/E ratio of 12.2x (Q4 2023) is significantly below the industry average and historical levels
• EV/EBITDA of 7.79x indicates reasonable valuation compared to peers
• Price-to-Sales ratio of 0.28x suggests the stock is trading at a discount to historical levels
• Price-to-Book ratio of 1.33x is below historical average

Recent Performance & Technical Analysis

• Stock has rebounded 46.7% from end of 2024 through mid-February 2025
• Currently trading around $74.77 (as of Feb 23, 2025), showing strong momentum
• Recent Q4 earnings beat with adjusted EPS of $1.19 vs $0.92 expected

Growth & Profitability

• Revenue grew 4.2% YoY to $97.7B in Q4 2024
• Management projects adjusted EPS of $5.75-$6.00 for 2025, indicating earnings recovery
• Operating cash flow expected at $6.5B for 2025, though down from $9.1B in 2024

Key Risks

• Medical Benefits Ratio increased to 94.8% from 88.5% YoY
• Facing competitive pressure from Amazon's expansion in prescription delivery
• Regulatory scrutiny over PBM business operations

Based on these factors, CVS is NOT overvalued at current levels. The stock trades at attractive multiples relative to peers and historical averages, while showing signs of operational improvement under new management. The recent earnings beat and positive 2025 guidance suggest potential for further upside.

CVS Health Corporation is a health solutions company. The Company operates in four segments: Health Care Benefits, Health Services, Pharmacy & Consumer Wellness, and Corporate/Other. Its Health Care Benefits segment offer a range of traditional, voluntary and consumer-directed health insurance products and related services, including medical, pharmacy, dental and behavioral health plans, medical management capabilities, Medicare Advantage and Medicare supplement plans, and Medicaid health care management services. Its Health Services segment provides a full range of pharmacy benefit management solutions, delivers health care services in its medical clinics, virtually, and in the home, and offers provider enablement solutions. The Pharmacy & Consumer Wellness segment dispenses prescriptions in its retail pharmacies and through its infusion operations, provides ancillary pharmacy services, including pharmacy patient care programs, diagnostic testing and vaccination administration.

Based on the provided data and market analysis, here is the CVS stock price prediction for 2030:

Price Target Analysis for 2030

CVS stock is projected to reach $110-115 by 2030, representing approximately a 75% increase from current levels ($63.48), driven by three key factors:

1. Healthcare Industry Evolution

• Medicare Advantage enrollment is expected to reach 64% by 2034, up from 54% in 2024
• This growth directly benefits CVS's Aetna division and pharmacy business
• Rising healthcare costs and aging population support long-term revenue growth

2. Digital Transformation

• Online pharmacy market expected to reach $294.35 billion by 2030
• CVS's digital health initiatives and omnichannel strategy position it well to capture market share
• Integration of telehealth and primary care services creates additional revenue streams

3. Market Recovery and Business Optimization

• Recent analyst upgrades suggest improving business fundamentals
• Cost optimization initiatives and strategic partnerships
• Focus on value-based care model expected to improve margins

Current Market Position

• Trading at $63.48 (as of Feb 23, 2025)
• Recent earnings beat and positive guidance for 2025
• Strong market share in pharmacy retail and healthcare benefits segments

The $110-115 target by 2030 is supported by multiple analyst forecasts and considers both industry growth projections and company-specific initiatives. This represents an average annual return of approximately 9-10%.

CVS has a total of 300000 employees.