Deep Dive Into CVS Health Stock: Analyst Perspectives (15 Ratings)
Across the recent three months, 15 analysts have shared their insights on CVS Health (NYSE:CVS), expressing a variety of opinions spanning from bullish to bearish.
In the table below, you'll find a summary of their recent ratings, revealing the shifting sentiments over the past 30 days and comparing them to the previous months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 5 | 1 | 9 | 0 | 0 |
| Last 30D | 0 | 0 | 1 | 0 | 0 |
| 1M Ago | 0 | 0 | 0 | 0 | 0 |
| 2M Ago | 0 | 1 | 2 | 0 | 0 |
| 3M Ago | 5 | 0 | 6 | 0 | 0 |
Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $66.13, along with a high estimate of $86.00 and a low estimate of $58.00. Observing a downward trend, the current average is 21.7% lower than the prior average price target of $84.46.
Diving into Analyst Ratings: An In-Depth Exploration
In examining recent analyst actions, we gain insights into how financial experts perceive CVS Health. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Sarah James | Cantor Fitzgerald | Maintains | Neutral | $58.00 | $58.00 |
| Sarah James | Cantor Fitzgerald | Maintains | Neutral | $58.00 | $58.00 |
| Lisa Gill | JP Morgan | Lowers | Overweight | $86.00 | $101.00 |
| Michael Ha | Baird | Announces | Neutral | $61.00 | - |
| Chris Graja | Argus Research | Lowers | Buy | $80.00 | $100.00 |
| Stephen Baxter | Wells Fargo | Lowers | Equal-Weight | $60.00 | $76.00 |
| Charles Ryhee | TD Cowen | Lowers | Hold | $59.00 | $99.00 |
| Michael Cherny | B of A Securities | Lowers | Buy | $77.00 | $95.00 |
| Nathan Rice | Goldman Sachs | Lowers | Buy | $74.00 | $85.00 |
| Andrew Mok | Barclays | Lowers | Equal-Weight | $63.00 | $78.00 |
| Kevin Caliendo | UBS | Lowers | Neutral | $60.00 | $85.00 |
| David Macdonald | Truist Securities | Lowers | Buy | $66.00 | $90.00 |
| Ann Hynes | Mizuho | Lowers | Buy | $72.00 | $86.00 |
| Michael Cherny | Leerink Partners | Announces | Market Perform | $60.00 | - |
| Sarah James | Cantor Fitzgerald | Lowers | Neutral | $58.00 | $87.00 |
Key Insights:
- Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to CVS Health. This information provides a snapshot of how analysts perceive the current state of the company.
- Rating: Analysts unravel qualitative evaluations for stocks, ranging from 'Outperform' to 'Underperform'. These ratings offer insights into expectations for the relative performance of CVS Health compared to the broader market.
- Price Targets: Delving into movements, analysts provide estimates for the future value of CVS Health's stock. This analysis reveals shifts in analysts' expectations over time.
To gain a panoramic view of CVS Health's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using our Ratings Table.
Stay up to date on CVS Health analyst ratings.
Discovering CVS Health: A Closer Look
CVS Health offers a diverse set of healthcare services. Its roots are in its retail pharmacy operations, where it operates over 9,000 stores primarily in the us. CVS is also a large pharmacy benefit manager (acquired through Caremark), processing about 2 billion adjusted claims annually. It also operates a top-tier health insurer (acquired through Aetna) where it serves about 26 million medical members. The company's recent acquisition of Oak Street adds primary care services to the mix, which could have significant synergies with all its existing business lines.
A Deep Dive into CVS Health's Financials
Market Capitalization Analysis: Above industry benchmarks, the company's market capitalization emphasizes a noteworthy size, indicative of a strong market presence.
Revenue Growth: Over the 3 months period, CVS Health showcased positive performance, achieving a revenue growth rate of 3.7% as of 31 March, 2024. This reflects a substantial increase in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Health Care sector.
Net Margin: CVS Health's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 1.26%, the company showcases strong profitability and effective cost management.
Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 1.48%, the company showcases effective utilization of equity capital.
Return on Assets (ROA): CVS Health's ROA stands out, surpassing industry averages. With an impressive ROA of 0.45%, the company demonstrates effective utilization of assets and strong financial performance.
Debt Management: CVS Health's debt-to-equity ratio is below the industry average at 1.11, reflecting a lower dependency on debt financing and a more conservative financial approach.
Understanding the Relevance of Analyst Ratings
Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.
In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.
This article was generated by Benzinga's automated content engine and reviewed by an editor.