CVS Health (NYSE:CVS) Stock Bumped Up to Strong-Buy by Wall Street Zen

Key Points

• Wall Street Zen upgraded CVS Health to “strong-buy” from “buy,” while broader analyst sentiment remains favorable: 20 analysts rate it a buy and three a hold, with a consensus price target of $107.24.
• CVS exceeded quarterly expectations, reporting $2.58 in adjusted EPS versus the $1.87 consensus and $106.1 billion in revenue, up 7.3% year over year. Management guided to fiscal 2026 EPS of $7.90–$8.10.
• Despite potential upside from recovering Aetna margins and improving pharmacy trends, Medicare Advantage star-rating pressures and 340B pricing risks could weigh on bonus payments, earnings and the company’s turnaround.

CVS Health (NYSE:CVS - Get Free Report) was upgraded by analysts at Wall Street Zen from a "buy" rating to a "strong-buy" rating in a research report issued on Sunday, Wall Street Zen reports.

A number of other analysts also recently weighed in on CVS. Argus upped their price target on shares of CVS Health from $104.00 to $114.00 and gave the stock a "buy" rating in a report on Wednesday, August 19th. Barclays lifted their price objective on shares of CVS Health from $106.00 to $108.00 and gave the company an "overweight" rating in a research note on Thursday, August 6th. Sanford C. Bernstein restated an "outperform" rating and set a $112.00 target price on shares of CVS Health in a research note on Wednesday, September 9th. BMO Capital Markets set a $112.00 target price on CVS Health in a report on Wednesday, September 9th. Finally, Cantor Fitzgerald reissued a "neutral" rating on shares of CVS Health in a report on Friday. Twenty equities research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company's stock. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $107.24.

CVS Health Price Performance

Shares of NYSE CVS opened at $86.15 on Friday. The business has a fifty day moving average price of $92.73 and a two-hundred day moving average price of $92.37. The stock has a market capitalization of $110.18 billion, a PE ratio of 22.79, a P/E/G ratio of 0.80 and a beta of 0.60. The company has a debt-to-equity ratio of 0.74, a current ratio of 0.87 and a quick ratio of 0.66. CVS Health has a fifty-two week low of $69.51 and a fifty-two week high of $110.68.

CVS Health (NYSE:CVS - Get Free Report) last issued its quarterly earnings results on Wednesday, August 5th. The pharmacy operator reported $2.58 EPS for the quarter, topping analysts' consensus estimates of $1.87 by $0.71. CVS Health had a return on equity of 13.12% and a net margin of 1.18%. The company had revenue of $106.10 billion for the quarter, compared to analysts' expectations of $100.03 billion. During the same quarter last year, the business earned $1.81 earnings per share. CVS Health's revenue was up 7.3% on a year-over-year basis. CVS Health has set its FY 2026 guidance at 7.900-8.100 EPS. As a group, equities analysts predict that CVS Health will post 8.02 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of CVS. Elevation Wealth Partners LLC raised its position in shares of CVS Health by 41.8% during the second quarter. Elevation Wealth Partners LLC now owns 356 shares of the pharmacy operator's stock worth $37,000 after acquiring an additional 105 shares during the last quarter. Apella Capital LLC increased its position in CVS Health by 1.7% during the 2nd quarter. Apella Capital LLC now owns 6,940 shares of the pharmacy operator's stock valued at $724,000 after purchasing an additional 117 shares during the period. Wellington Altus USA Inc. raised its holdings in CVS Health by 13.3% during the 2nd quarter. Wellington Altus USA Inc. now owns 1,025 shares of the pharmacy operator's stock worth $106,000 after purchasing an additional 120 shares during the last quarter. CoreCap Advisors LLC lifted its position in shares of CVS Health by 4.2% in the 2nd quarter. CoreCap Advisors LLC now owns 3,481 shares of the pharmacy operator's stock worth $360,000 after purchasing an additional 139 shares during the period. Finally, AGP Franklin LLC boosted its stake in shares of CVS Health by 1.3% in the 1st quarter. AGP Franklin LLC now owns 11,563 shares of the pharmacy operator's stock valued at $830,000 after purchasing an additional 146 shares during the last quarter. 80.66% of the stock is currently owned by institutional investors and hedge funds.

Key Stories Impacting CVS Health

Here are the key news stories impacting CVS Health this week:

• Positive Sentiment: CVS said more than 69% of Aetna’s Medicare Advantage members are enrolled in plans rated four stars or higher for 2027. The company highlighted solid clinical quality, preventive care and member-experience performance. Aetna 2027 Star Ratings Reflect Strong Clinical Quality and Member Experience
• Positive Sentiment: CVS extended pharmaceutical distribution agreements with Cardinal Health and McKesson through 2032, supporting supply continuity for its retail pharmacies and other dispensing operations. CVS Health Extends Drug Distribution Deals
• Positive Sentiment: Analysts continue to point to potential upside from recovering Aetna margins, improving pharmacy trends, growth in Health Services and CVS’s valuation discount versus peers. The company also opened a compact, pharmacy-focused location in the Boston area, supporting its retail strategy. CVS Trades at a Discount to Industry
• Neutral Sentiment: Options traders reportedly purchased a large volume of CVS call options, signaling speculative bullish interest but not guaranteeing sustained buying in the shares. Traders Buy CVS Call Options
• Negative Sentiment: TD Cowen said Aetna’s 2027 results were weaker than expected, with the portion of Medicare Advantage members in plans rated at least 4.5 stars projected to fall to about 35% from 63%. The decline could reduce quality-related bonus payments and put pressure on Aetna’s earnings and margins. CVS Star Ratings Weaker Than Expected
• Negative Sentiment: The ratings setback has made CVS an underperformer among managed-care stocks, while competitors with stronger Medicare Advantage scores received more favorable investor reactions. Persistent 340B pricing pressure remains an additional risk to the recovery story.

About CVS Health

CVS Health Corp. is an integrated health care company that provides pharmacy, insurance and health services primarily in the United States. Its operations are designed to connect consumers, health plans, health care providers and pharmacy services across multiple points of care.

The company's major businesses include CVS Pharmacy retail locations, prescription fulfillment and consumer health products; CVS Caremark, a pharmacy benefit management business; and Aetna, which offers health insurance products and related services for employers, individuals, government programs and other organizations.

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