DailyIQ
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Sector:HealthcareAll sectors
Last updated 14 minutes ago

CVS·CVS Health Corporation

$.
+. (+.%)
After Hours
High
$105.46
Open
$103.69
Market Cap
132.89B
52W High
$106.15
Low
$102.40
P. Close
$104.19
P/E
45.32
52W Low
$58.50
Fwd P/E
12.40
DailyIQ Est.
$115.25
Technical Score (1D)
82
BUY
News Sentiment
71
BULLISH
CVS Health just declared a $0.50 quarterly dividend effective July 1, underscoring its commitment to returning value while maintaining a robust cash position. The dividend aligns with the broader narrative that CVS’s diversified healthcare model—pharmacy chain, primary care, and pharmacy‑benefit management—provides defensive resilience in downturns, as highlighted in a recent analyst note. Analysts now expect a modest single‑digit rise in Q2 2026 earnings per share, with revenue drivers such as pharmacy‑benefit management and retail operations projected to remain stable, setting the stage for the August 5 earnings release. The upcoming earnings will also test the company’s cost‑control narrative, following a CEO statement that Aetna’s medical cost growth is under control, which could support margin stability. Meanwhile, market sentiment has been buoyed by a recent price‑target lift from RBC to $113, reflecting confidence in CVS’s earnings trajectory and market leadership. Jim Cramer’s commentary on managed‑care consolidation positions CVS as a primary beneficiary, suggesting that Walgreens’ decline may free up market share and reinforce CVS’s pharmacy‑benefit management advantage. However, a $36.5 million settlement over insulin overbilling and a multi‑million dollar Medicaid claims settlement could increase compliance costs, adding a regulatory risk layer to the outlook. Investors should watch the August 5 earnings for confirmation of cost‑control gains, revenue growth in pharmacy‑benefit management, and any updates on the ongoing settlement impacts. Additionally, the sale of the Omnicare long‑term care pharmacy business to GenieRx signals a strategic focus on core retail and health‑services operations, potentially freeing capital for future investments. Finally, the expansion of CVS Specialty’s HIV treatment portfolio may drive long‑term prescription volumes, offering a secondary growth avenue that could influence earnings beyond the immediate quarter.
Earnings Summary
CVS Health Corporation is a diversified U.S. healthcare company that operates through Healthcare Benefits, Health Services, and Pharmacy & Consumer Wellness segments, positioning it within the broader healthcare plans sector. In the most recent quarters, the company posted a 79% EPS increase from Q4 2025 (1.09) to Q1 2026 (2.57) while revenue dipped modestly from $105.69 billion to $100.43 billion, indicating a shift toward higher margin services; compared with the prior two quarters, EPS rose 12% from Q3 2025 (1.60) to Q1 2026, and revenue grew 3% from Q2 2025 (98.92 billion) to Q1 2026, underscoring a decelerating revenue pace but accelerating earnings. The company has consistently beat analyst expectations, recording six straight earnings beats from Q4 2024 through Q1 2026, with EPS exceeding estimates by 30% to 40% in most periods. Historically, revenue has trended upward year over year, rising from $97.71 billion in Q4 2024 to $105.69 billion in Q4 2025 before a slight dip in Q1 2026, while EPS volatility has been offset by a pattern of strong earnings beats, suggesting resilient profitability. Recent filings reveal a settlement of a multi‑million Medicaid billing dispute and the sale of its Omnicare unit to GenieRx, which should reduce regulatory risk and free capital for higher‑margin pharmacy‑benefit‑management expansion; the company’s focus on GLP‑1 delivery and menopause care programs also signals new revenue streams. Investors should watch for updates on the Omnicare divestiture timeline, cost‑control initiatives, and the uptake of GLP‑1 prescriptions, as these factors will shape the company’s margin trajectory and guide future earnings guidance.

EPS

EstBeatMiss
$0.77$1.28$1.79$2.30$2.81Q1'25Q2'25Q3'25Q4'25Q1'26Q2'26
QtrEstActual+/−
Q2'26$1.83 - -
Q1'26$2.21$2.57+16.5%
Q4'25$1.00$1.09+8.8%
Q3'25$1.36$1.60+17.9%
Q2'25$1.46$1.81+23.9%
Q1'25$1.67$2.25+34.5%

Revenue

EstBeatMiss
$92.9B$96.5B$100.1B$103.7B$107.4BQ1'25Q2'25Q3'25Q4'25Q1'26Q2'26
QtrEstActual+/−
Q2'26$101.1B - -
Q1'26$95.0B$100.4B+5.7%
Q4'25$104.6B$105.7B+1.0%
Q3'25 - $102.9B -
Q2'25 - $98.9B -
Q1'25 - $94.6B -
Full Earnings BreakdownEstimates, actuals, guidance, and historical context
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Market Data

CVS Stock Snapshot

CVS is currently trading at $104.05, giving CVS Health Corporation a market cap of 132.89B and a P/E ratio of 45.3. Today's range spans $102.40–$105.46, with shares opening at $103.69 and moving down $0.14 (0.1%) from the prior close. DailyIQ's technical score sits at 82/100 (BUY) with a news sentiment reading of 71/100.

Over the past year CVS has traded between $58.50 and $106.15 - the current price is +77.9% off the 52-week low and -2.0% from the high. 35 analysts cover the stock with a Buy consensus and a mean 12-month target of $107.96 (range $79.00–$148.00), implying upside of +3.8%.

The BUY technical setup for CVS (82/100) is worth attention in the context of the broader Healthcare sector. At $104.05 (near 52-week highs), with 132.89B in capitalization and bullish sentiment at 71/100 The current P/E ratio stands at 45.3., this large-cap name sits at the intersection where momentum strategies and fundamental growth investors both find something to like. Annual range: $58.50–$106.15.

What makes CVS's BUY setup (82/100) particularly actionable at 132.89B in Healthcare capitalization is the scale-to-move ratio: large enough to feature on institutional mandates but not so large that the percentage upside is already compressed by index inertia. At $104.05 (near 52-week highs in $58.50–$106.15), with sentiment running bullish at 71/100, the setup rewards conviction-sized positioning more than it does speculative small bets.