Last Updated: 13 Sep 2024
Executive Summary
CVS Health Corp (CVS) is a leading healthcare company with a strong market position in pharmacy, pharmacy benefits management, and health insurance. The company's latest stock price is $57.53, and it has a market capitalization of $71.6 billion. CVS has a solid financial profile with a trailing P/E ratio of 10.13, a forward P/E ratio of 7.56, and a dividend yield of 0.0467%. The company's recent earnings growth has been modest, but analysts expect it to accelerate in the coming years. CVS is a well-managed company with a strong track record of innovation. It is well-positioned to benefit from the growing demand for healthcare services.
Company Overview
CVS Health Corp is an American healthcare company that owns CVS Pharmacy, a retail pharmacy chain; CVS Caremark, a pharmacy benefits manager; Aetna, a health insurance provider, among many other brands. The company's headquarters is in Woonsocket, Rhode Island. CVS Health is one of the largest healthcare companies in the United States, with over 300,000 employees and over 9,000 retail pharmacies. The company's revenue for the fiscal year 2023 was $361.9 billion.
Fundamental Analysis
CVS Health Corp has a strong financial profile. The company's revenue has grown steadily in recent years, and its earnings have been relatively stable. The company's gross profit margin is 14.8%, and its operating margin is 3.03%. CVS Health has a strong balance sheet, with $35.2 billion in cash and equivalents and $43.3 billion in total debt. The company's debt-to-equity ratio is 0.61.
CVS Health's return on assets (ROA) is 2.87%, and its return on equity (ROE) is 9.73%. These ratios are both above the industry average. CVS Health's ROA has been relatively stable in recent years, while its ROE has been increasing.
Technical Analysis
CVS Health Corp's stock price has been trading in a range between $52.18 and $80.8 over the past 52 weeks. The stock price is currently trading near the bottom of this range. The stock's 50-day moving average is $58.24, and its 200-day moving average is $67.08. The stock's relative strength index (RSI) is 37.5, which indicates that the stock is oversold.
Short Term Outlook
CVS Health Corp's stock price is expected to remain range-bound in the short term. The stock's RSI is oversold, which suggests that it could be due for a rebound. However, the stock's moving averages are both below the current price, which suggests that the stock could continue to decline in the short term.
Long Term Outlook
CVS Health Corp's long-term outlook is positive. The company is a leader in the healthcare industry, and it is well-positioned to benefit from the growing demand for healthcare services. The company's strong financial profile and its commitment to innovation are expected to drive long-term growth.
Analyst Recommendations
Analysts are generally bullish on CVS Health Corp. The average analyst rating for the stock is "Buy." The average analyst target price for the stock is $63.95.
