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Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.
How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.8% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: CVS Health (CVS - Free Report) Headquartered in Woonsocket, RI, CVS Health Corporation (formerly known as CVS Caremark Corporation) is a health solutions company with integrated offerings across the entire spectrum of pharmacy care. On Sep 3, 2014, CVS Caremark Corporation announced a change of its corporate name to CVS Health to reflect its broader healthcare commitment. In 2018, CVS Health acquired insurance giant Aetna for $70-billion.
CVS is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
Momentum investors should take note of this Medical stock. CVS has a Momentum Style Score of B, and shares are up 2.8% over the past four weeks.
11 analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.53 to $7.97 per share. CVS also boasts an average earnings surprise of +20.5%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, CVS should be on investors' short list.
, /PRNewswire/ -- New survey findings commissioned by CVS Health® (NYSE: CVS) reveal that many Americans face persistent barriers accessing preventive health screenings. Nearly one in four adults have delayed speaking with a health professional about health concerns because of barriers related to access, cost or availability, and one-third were unaware that community screening programs exist.
"People aren't telling us that preventive health screenings don't matter; they're telling us that accessing them can be harder than it should be," said Jenny McColloch, Chief Sustainability Officer and Vice President of Community Impact, CVS Health. "This survey reinforces what we've seen over the past 20 years through Project Health: when screenings are convenient, accessible and offered in places people already know and trust, they're more likely to take that first step. That's why we've continued to bring preventive health services directly into communities and help people better understand their health."
As Project Health marks its 20th anniversary, the program continues to demonstrate the impact of community-based prevention. Since launching in 2006, Project Health has helped millions of people better understand and manage their health through convenient, accessible screenings and health education resources.
The program plays an important role in improving access: Today, four in 10 adults say affordable screenings are difficult to find in their community, while also reporting challenges securing timely appointments. Yet nearly three-quarters (72%) say a program offering screenings with no appointment or insurance requirements would make health screenings easier to obtain. The findings underscore why Project Health, CVS Health's free community health screening program, has spent the past 20 years bringing preventive health services directly into communities through more than 6 million free screenings at CVS Pharmacy locations, mobile sites and community events.
Since launching in 2006, Project Health has:
Delivered nearly 20,000 community screening events Reached 1.8 million people across the U.S. and Puerto Rico Provided more than 6 million no-cost preventive health screenings Offered screenings with no appointment and no insurance required Barriers Continue to Keep Many Americans from Preventive Screenings
Many U.S. adults face a combination of awareness, access and affordability challenges that can prevent them from getting recommended preventive health screenings.
Among adults who report barriers to obtaining routine screenings:
Nearly one in four (24%) have delayed speaking with a health professional about a specific health concern. 19 percent have relied on internet searches instead of speaking with a health professional. 17 percent have reduced spending on essentials such as groceries because of health-related costs. 15 percent have used savings or taken on debt to cover health expenses. 15 percent have lost income after taking time away from work to address health-related needs. One Screening, One New City, One Important Reminder
For Cheryl Jones, Project Health arrived at exactly the right time.
When Cheryl Jones retired and relocated from New York to Houston in late 2025, she was still getting settled and had not yet established local health resources. After a planned trip back to New York for appointments was canceled, she found an unexpected opportunity close to home: a Project Health mobile screening event outside a nearby CVS Pharmacy.
"I had just moved to Houston and didn't know anyone yet," Jones said. "The team was so inviting that I decided to stop and take the screening."
What began as a routine screening provided valuable insight into her health. Jones learned that her cholesterol and A1C levels had increased, giving her information she may not have discovered for months.
"It wasn't necessarily surprising, but it was the reminder I needed," Jones said. "The experience encouraged me to pay closer attention to my health and be more consistent about monitoring it."
For Jones, the experience highlighted the value of bringing preventive health services directly into communities.
"For someone new to a city without an established doctor, it gave me a way to stay informed about my health instead of waiting until something became serious," she said.
Building Trust Through Community Presence
Over the past two decades, Project Health has evolved alongside the communities it serves. Screenings are offered at CVS Pharmacy locations, mobile sites and community events, making it easier for people to access preventive health services in places that are convenient and familiar.
Each participant receives:
No-cost preventive health screenings One-on-one consultations with health professionals Information to help understand screening results Connections to local resources and online health education, including access to the Project Health app The survey suggests these are exactly the types of services Americans value most. Respondents said trained health professionals, convenient locations, walk-in availability and help understanding results are among the most important factors in building trust in community screening programs. These findings closely align with Project Health's approach of providing convenient community-based screenings while helping participants understand their results and connect to additional health resources when needed.
Survey Methodology
The survey was conducted online by Morning Consult between July 16–20, 2026, among 2,062 U.S. adults, with additional samples in Arizona, California, Florida, Illinois, Massachusetts, New York, North Carolina, Pennsylvania and Texas. Results have a margin of error ranging from +/- 2 to 4 percentage points.
About CVS Health
CVS Health is a leading health solutions company simplifying health care one person, one family and one community at a time. As of June 30, 2026, the Company had approximately 9,000 retail pharmacy locations, more than 1,000 walk-in and primary care medical clinics and a leading pharmacy benefits manager with approximately 87 million plan members. The Company also serves an estimated 37 million people through a broad range of health insurance products and related services. The Company's integrated model uses personalized, technology driven services to connect people to simply better health, increasing access to quality care, delivering better outcomes, and lowering overall costs.
Media contact
Ethan Slavin
860-273-6095
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CVS Health (CVS - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.
Shares of this drugstore chain and pharmacy benefits manager have returned +2.8% over the past month versus the Zacks S&P 500 composite's -0.4% change. The Zacks Medical Services industry, to which CVS Health belongs, has gained 1.8% over this period. Now the key question is: Where could the stock be headed in the near term?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Revisions to Earnings EstimatesRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
For the current quarter, CVS Health is expected to post earnings of $1.61 per share, indicating a change of +0.6% from the year-ago quarter. The Zacks Consensus Estimate has changed -3.3% over the last 30 days.
For the current fiscal year, the consensus earnings estimate of $7.97 points to a change of +18.1% from the prior year. Over the last 30 days, this estimate has remained unchanged.
For the next fiscal year, the consensus earnings estimate of $8.49 indicates a change of +6.6% from what CVS Health is expected to report a year ago. Over the past month, the estimate has changed +0.4%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, CVS Health is rated Zacks Rank #3 (Hold).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
For CVS Health, the consensus sales estimate for the current quarter of $104.82 billion indicates a year-over-year change of +1.9%. For the current and next fiscal years, $417.32 billion and $429.73 billion estimates indicate +3.8% and +3% changes, respectively.
Last Reported Results and Surprise HistoryCVS Health reported revenues of $106.1 billion in the last reported quarter, representing a year-over-year change of +7.3%. EPS of $2.58 for the same period compares with $1.81 a year ago.
Compared to the Zacks Consensus Estimate of $100.18 billion, the reported revenues represent a surprise of +5.91%. The EPS surprise was +37.97%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.
ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
CVS Health is graded A on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about CVS Health. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
CVS Health (CVS -0.69%) dealt with significant headwinds after the COVID-19 pandemic. The company's financial results suffered as sales of coronavirus-related products (such as diagnostic tests) declined, while expenses in its insurance business rose substantially, resulting in lower profits and margins. However, CVS Health has done a good job of addressing those problems, and the stock has rebounded. Shares are up 31% over the past 12 months. Wall Street thinks there may be even more upside on the horizon. CVS Health's average price target is $116.04 (according to Yahoo! Finance), implying a meaningful 20% upside from current levels. Is now a great time to buy the stock?
Image source: The Motley Fool.
Recent financial results paint a bright picture Over the past 18 months (or so), CVS Health has implemented several initiatives that have helped improve its business. For instance, the company closed dozens of stores, many of which were unprofitable. The pharmacy chain specialist also scaled back its insurance division, notably by exiting the Affordable Care Act marketplace. The results have been pretty impressive. Consider the company's second-quarter results. CVS Health's revenue increased by a healthy 7.3% year over year to $106.1 billion.
Adjusted earnings per share were $2.58, 42.5% higher than the year-ago period. Note the improvement in CVS Health's healthcare benefits segment, which offers health insurance services. Operating expenses as a percentage of revenue declined slightly to 12.4%, down from 12.5% in the prior-year quarter, even as revenue grew 3.5% year over year. And operating margins within this unit came in at 5.8%, up from the 2.8% reported in the year-ago period. Also, CVS Health's medical benefits ratio -- the percentage of insurance premiums the company spent on medical care (the lower the better) -- declined to 87.4% in the second quarter, down from 89.9% in Q2 2025.
CVS Health also increased its guidance for the full fiscal year 2026. The company now expects its adjusted EPS to fall between $7.90 and $8.10, up from its previous range of between $7.30 to $7.50. The company is also now projecting cash flow from operations of at least $11.5 billion, up from the previous lower bound of $9.5 billion. These are signs of a much-improved business.
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CVS Health pounces on a new opportunity CVS's disciplined cost control and large, diversified healthcare offerings could power solid revenue and earnings growth over the medium term. It's also worth noting that the company is positioning itself to capitalize on a key growth driver: the rapidly expanding weight-loss market. Insurance coverage for GLP-1 weight loss medicines such as Zepbound, Wegovy, and Foundayo has been lacking. As a result, some patients who want these therapies haven't been able to access them.
CVS Health is making it easier for them to do so. The company offers low-cost consultations with licensed healthcare professionals for GLP-1 prescriptions, along with access to all medicines in this niche that are approved by the U.S. Food and Drug Administration. Further, CVS Health offers coaching (still with professionals) as patients go through their weight-loss journeys, along with over-the-counter products to manage side effects.
These initiatives could meaningfully impact the company's revenue, and it's important to highlight just how massive this opportunity could be. According to some analysts, the weight loss market will reach $150 billion by 2035 -- it was worth just $15 billion in 2024. Over the next few years, more medicines will enter the field, and perhaps insurance coverage will evolve as more data come in on the benefits of these drugs. CVS Health is well-positioned to capitalize on this opportunity through its pharmacy and insurance divisions.
CVS Health's vertically integrated healthcare model, popular brand name, and large ecosystem of patients who rely on it for their prescriptions are important assets that have allowed it to keep costs under control in recent years while positioning it well to profit from the weight-loss market's growth. And these are all qualities that make the stock an attractive long-term bet, even before we mention its attractive dividend program: CVS Health offers a forward yield of 2.8%, versus the S&P 500's average of 1.1%. In short, Wall Street's optimism is well-founded: CVS Health is an attractive stock to buy.
Richard Pzena Buys Globant SA (GLOB) -- Shares Look 78% Undervalued on GF Value
On Aug. 31, 2026, Richard Pzena (Trades, Portfolio)'s firm, Pzena Investment Management, significantly increased its stake in Globant SA (GLOB, Financial), acquiring an additional 1,691,337 shares at a weighted average price of $40.71 per share. This transaction brought the firm's total holdings in the Luxembourg-based IT services company to 5,551,055 shares. The purchase had a 0.2% impact on the firm's overall portfolio, with the Globant position now representing 0.66% of total assets under management. Following this addition, Pzena Investment Management's ownership stake in Globant has risen to 12.90% of the company's outstanding shares, reinforcing the firm's position as the largest institutional holder of the stock.
Richard Pzena (Trades, Portfolio)'s Value-Oriented Investment Philosophy Richard Pzena (Trades, Portfolio) founded Pzena Investment Management in 1995 and serves as Co-Chief Investment Officer. The firm's leader earned a BS summa cum laude from the Wharton School in 1979 and an MBA from the University of Pennsylvania in 1980. The firm's investment approach ranks companies from cheapest to most expensive based on how their current share price compares to their normal long-term earnings power. This strategy targets quality businesses trading at depressed valuations, acknowledging that low prices often stem from temporary problems. The core analytical question the firm seeks to answer is whether the issue causing the price decline is transient or permanent in nature.
With $34.07 billion in equity spread across 161 stock positions, Pzena Investment Management maintains significant sector concentrations in Financial Services and Healthcare. The firm's top holdings include Baxter International Inc (BAX, Financial), CVS Health Corp (CVS, Financial), Dollar General Corp (DG, Financial), Humana Inc (HUM, Financial), and Magna International Inc (MGA, Financial). This diversified portfolio reflects the firm's commitment to identifying undervalued opportunities across various industries while maintaining a disciplined approach to value investing.
Globant SA: A Digital Transformation Leader Under Pressure Globant is a next-generation IT services company founded in 2003 in Argentina and currently headquartered in Luxembourg. The company specializes in assisting clients with digital transformation efforts by creating customized software solutions. Globant primarily serves clients in the US and Latin America, with a client base relatively concentrated in the media and entertainment and financial services industries. The company went public on July 18, 2014, and currently operates as a single-segment business within the Software industry.
As of the article date, Globant's stock has a market capitalization of $1.6 billion, with shares trading at $37.12, down 8.82% since Pzena's transaction. The company's GF Score of 83/100 suggests good outperformance potential, supported by a Profitability Rank of 10/10 and a Growth Rank of 9/10. The stock's GF Value Rank stands at 2/10, while its Momentum Rank is 4/10, reflecting the recent price decline.
Valuation Assessment: Significant Undervaluation Signal Globant's current price-to-GF Value ratio stands at 0.22, indicating the stock is significantly undervalued relative to its GF Value of $172.22. This suggests the market is pricing the company at a substantial discount to its estimated intrinsic worth. The company trades at a price-earnings ratio of 14.56, reflecting positive earnings despite recent operational headwinds. The Financial Strength of the company is moderate at 7/10, with a cash-to-debt ratio of 0.34 and an interest coverage ratio of 6.43. The Altman Z score of 2.51 indicates acceptable financial stability, while the Piotroski F-Score of 6 suggests moderate financial health.
Performance Metrics and Market Context Globant's stock has experienced significant market pressure, declining 41.14% year-to-date and 39.26% over the past 12 months. The 6-month momentum index of -27.53% underscores the recent downward trajectory. However, RSI readings of 44.00 (5-day), 50.00 (9-day), and 52.98 (14-day) suggest the stock is currently neither oversold nor overbought, potentially indicating a stabilization phase. Despite the price decline, the company has demonstrated historical growth with a 9.50% three-year revenue growth rate and 6.50% three-year earnings growth. Since its IPO, the stock has gained 186.64%, though recent performance has eroded much of the prior gains.
Institutional Interest and Ownership Landscape Pzena Investment Management LLC stands as the largest institutional holder of Globant, with the recent addition reinforcing its position as a significant shareholder. Other notable investors holding Globant include Brandes Investment Partners, LP (Trades, Portfolio) and Joel Greenblatt (Trades, Portfolio), indicating continued interest from value-oriented managers. According to GuruFocus Premium data, seven gurus currently hold the stock, with four adding and two trimming positions in recent quarters. This net positive activity among notable investors provides a differentiated signal that is not available through other financial data platforms.
Transaction Analysis: A Contrarian Value Bet The firm's decision to increase its stake despite the stock's poor momentum aligns with the contrarian value approach of purchasing quality businesses at depressed prices. The transaction reflects confidence that the factors driving Globant's share price decline are temporary rather than permanent, consistent with Pzena's stated investment philosophy. With the stock trading at just 22% of its GF Value, the potential upside appears substantial if the company's operational challenges prove transient. The firm's increased ownership to 12.90% of outstanding shares demonstrates a strong conviction in the company's long-term prospects, even as near-term market sentiment remains negative. This calculated bet on Globant's recovery represents a meaningful commitment from one of the most respected value investors in the industry.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Disclosures I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.
Continuum Advisory LLC lessened its holdings in shares of CVS Health Corporation (NYSE:CVS – Free Report) by 98.8% during the second quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 991 shares of the pharmacy operator’s stock after selling 79,745 shares during the period. Continuum Advisory LLC’s holdings in CVS Health were worth $103,000 as of its most recent filing with the Securities and Exchange Commission.
A number of other institutional investors and hedge funds have also added to or reduced their stakes in the business. Caitong International Asset Management Co. Ltd raised its stake in shares of CVS Health by 407.2% during the third quarter. Caitong International Asset Management Co. Ltd now owns 350 shares of the pharmacy operator’s stock valued at $26,000 after purchasing an additional 281 shares in the last quarter. Swiss RE Ltd. bought a new position in CVS Health in the 4th quarter valued at about $26,000. Kilter Group LLC acquired a new position in CVS Health during the 2nd quarter valued at about $27,000. Sankala Group LLC bought a new stake in shares of CVS Health during the 4th quarter worth about $28,000. Finally, Global Trust Asset Management LLC raised its position in shares of CVS Health by 344.8% during the 1st quarter. Global Trust Asset Management LLC now owns 387 shares of the pharmacy operator’s stock worth $28,000 after buying an additional 300 shares in the last quarter. 80.66% of the stock is owned by institutional investors.
Analysts Set New Price Targets Several research firms have recently issued reports on CVS. Mizuho increased their price objective on shares of CVS Health from $110.00 to $115.00 and gave the company an “outperform” rating in a report on Monday, June 8th. Piper Sandler restated an “overweight” rating on shares of CVS Health in a research report on Wednesday, August 26th. Bank of America increased their price target on CVS Health from $100.00 to $110.00 and gave the company a “buy” rating in a research note on Monday, June 22nd. Cantor Fitzgerald boosted their price objective on CVS Health from $100.00 to $110.00 and gave the stock an “overweight” rating in a research note on Tuesday, July 7th. Finally, Truist Financial upped their price objective on CVS Health from $108.00 to $118.00 and gave the company a “buy” rating in a report on Tuesday, July 14th. Twenty-two analysts have rated the stock with a Buy rating and one has issued a Hold rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $106.83.
Read Our Latest Analysis on CVS Health CVS Health Trading Up 0.1% Shares of NYSE:CVS opened at $96.80 on Tuesday. The company has a debt-to-equity ratio of 0.74, a quick ratio of 0.66 and a current ratio of 0.87. The stock has a market capitalization of $123.80 billion, a price-to-earnings ratio of 25.61, a PEG ratio of 0.94 and a beta of 0.59. CVS Health Corporation has a 1-year low of $69.51 and a 1-year high of $110.68. The company has a 50 day moving average price of $100.65 and a 200 day moving average price of $90.35.
CVS Health (NYSE:CVS – Get Free Report) last posted its quarterly earnings results on Wednesday, August 5th. The pharmacy operator reported $2.58 earnings per share (EPS) for the quarter, beating the consensus estimate 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 in the prior year, the company earned $1.81 earnings per share. The firm’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. On average, research analysts anticipate that CVS Health Corporation will post 8.02 EPS for the current fiscal year.
CVS Health Dividend Announcement The business also recently declared a quarterly dividend, which was paid on Monday, August 3rd. Investors of record on Thursday, July 23rd were paid a $0.665 dividend. The ex-dividend date of this dividend was Thursday, July 23rd. This represents a $2.66 dividend on an annualized basis and a yield of 2.7%. CVS Health’s dividend payout ratio (DPR) is currently 70.37%.
About CVS Health (Free Report)
CVS Health Corporation is a diversified healthcare company that operates a large network of retail pharmacies, pharmacy benefit management services and health care solutions. Headquartered in Woonsocket, Rhode Island, the company traces its roots to the early 1960s and has grown into an integrated provider of prescription drugs, over‑the‑counter products, clinical services and health insurance offerings. Its operating model combines retail pharmacy locations and in‑store clinics with broader pharmacy and health plan capabilities.
Key business activities include CVS Pharmacy retail operations, MinuteClinic walk‑in medical clinics and HealthHUB locations that offer expanded clinical services.
Recommended Stories Five stocks we like better than CVS Health 3 Under-the-Radar Defense Stocks With Record Backlogs This Korea ETF Has Soared, But the Rally May Not Be Over Why Guidewire’s Post-Earnings Plunge May Not Last Ride-Share Reckoning: Tesla Drives Into Uber’s Lane Want to see what other hedge funds are holding CVS? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for CVS Health Corporation (NYSE:CVS – Free Report).
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Key Takeaways CVS Health's Aetna turnaround gained traction as first-half adjusted operating income rose more than $2B. CVS Health raised 2026 Health Care Benefits adjusted operating income guidance to $5.03-$5.37B. Claims Assist Manager and Clinical Collaboration are helping CVS improve claims and provider coordination. CVS Health (CVS - Free Report) is executing a multi-year plan to restore Aetna, its insurance business, to target margins. The strategy focuses on disciplined pricing, better medical cost management, clinical programs and operational improvements. The benefits became more visible in the first half of 2026. Health Care Benefits adjusted operating income increased more than $2 billion year over year. In the second quarter, the medical benefit ratio (MBR) improved to 87.4% from 89.9% a year earlier.
The company raised its 2026 Health Care Benefits adjusted operating income outlook to $5.03-$5.37 billion. This is more than $1 billion above its previous guidance. The company now expects a full-year MBR of about 89.75%, within a range of 89.5-90.0%. Aetna’s profitability is expected to improve further over the next couple of years as the business moves toward its target margins.
Operational initiatives are also supporting the recovery. Aetna’s Claims Assist Manager is designed to reduce processing time for complex manually reviewed claims by more than 20%. CVS is also expanding its Aetna Clinical Collaboration program to improve coordination with healthcare providers. These efforts should help CVS rebuild Aetna’s profitability while strengthening member and provider engagement.
Peer UpdateMcKesson (MCK - Free Report) continues to expand its community-based specialty platform through the U.S. Oncology Network and related assets. In first-quarter fiscal 2027, Oncology & Multispecialty revenues increased 33% and adjusted operating profit rose 41%. Prescription Technology Solutions continues to benefit from demand for access and affordability programs across therapeutic categories. McKesson also began supporting the CMS Medicare GLP-1 Bridge program, where 95% of submitted prior authorization requests receive a determination within 30 minutes.
Align Technology (ALGN - Free Report) continues to broaden the clinical reach of the Invisalign portfolio beyond traditional adult and teen alignment. The Invisalign Palatal Expander, Invisalign First and Invisalign with Mandibular Advancement featuring Occlusal Blocks expand treatment options for growing patients and more complex cases. In the second quarter, teen and growing-patient treatment starts increased 7.2% year over year to 240,000 cases.
Align is also extending the portfolio through DSP touch-up cases, patient-specific financing options and products with fewer or no additional aligners.
CVS’ Price Performance, Valuation and EstimatesOver the past three months, CVS Health shares have risen 0.8% compared with the industry’s 11.9% growth.
Image Source: Zacks Investment Research
CVS shares are trading at a forward five-year price-to-sales ratio of 0.29, lower than the industry average of 0.50. The stock has a Value Score of A.
Image Source: Zacks Investment Research
The consensus estimate for the company’s 2026 earnings has been showing a bullish trend.
Image Source: Zacks Investment Research
CVS currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Compass Financial Management LLC purchased a new stake in shares of CVS Health Corporation (NYSE:CVS – Free Report) during the 2nd quarter, according to its most recent Form 13F filing with the SEC. The institutional investor purchased 5,476 shares of the pharmacy operator’s stock, valued at approximately $568,000.
Several other large investors also recently modified their holdings of CVS. Caitong International Asset Management Co. Ltd lifted its stake in shares of CVS Health by 407.2% in the 3rd quarter. Caitong International Asset Management Co. Ltd now owns 350 shares of the pharmacy operator’s stock worth $26,000 after purchasing an additional 281 shares during the period. Swiss RE Ltd. bought a new stake in CVS Health during the fourth quarter valued at approximately $26,000. Kilter Group LLC purchased a new stake in CVS Health during the second quarter valued at approximately $27,000. Mcguire Capital Advisors Inc. bought a new position in CVS Health in the fourth quarter worth approximately $28,000. Finally, Sankala Group LLC bought a new position in CVS Health in the 4th quarter worth $28,000. Institutional investors own 80.66% of the company’s stock.
Analyst Ratings Changes CVS has been the subject of a number of analyst reports. Mizuho upped their price target on CVS Health from $110.00 to $115.00 and gave the stock an “outperform” rating in a research report on Monday, June 8th. Truist Financial boosted their price objective on CVS Health from $108.00 to $118.00 and gave the company a “buy” rating in a research note on Tuesday, July 14th. Sanford C. Bernstein increased their target price on shares of CVS Health from $94.00 to $106.00 and gave the stock an “outperform” rating in a report on Tuesday, May 12th. Weiss Ratings raised shares of CVS Health from a “hold (c+)” rating to a “buy (b-)” rating in a report on Wednesday, August 5th. Finally, TD Cowen upped their price target on shares of CVS Health from $105.00 to $110.00 and gave the stock a “buy” rating in a research report on Monday, May 11th. Twenty-two investment analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. According to data from MarketBeat, CVS Health currently has an average rating of “Moderate Buy” and an average price target of $106.83.
View Our Latest Report on CVS CVS Health Trading Up 0.1% CVS Health stock opened at $96.80 on Monday. CVS Health Corporation has a 1 year low of $69.51 and a 1 year high of $110.68. The firm’s 50 day moving average price is $100.79 and its 200-day moving average price is $90.22. The company has a debt-to-equity ratio of 0.74, a current ratio of 0.87 and a quick ratio of 0.66. The stock has a market cap of $123.80 billion, a P/E ratio of 25.61, a PEG ratio of 0.94 and a beta of 0.59.
CVS Health (NYSE:CVS – Get Free Report) last posted its earnings results on Wednesday, August 5th. The pharmacy operator reported $2.58 earnings per share for the quarter, beating the consensus estimate of $1.87 by $0.71. The company had revenue of $106.10 billion during the quarter, compared to analysts’ expectations of $100.03 billion. CVS Health had a net margin of 1.18% and a return on equity of 13.12%. CVS Health’s quarterly revenue was up 7.3% on a year-over-year basis. During the same period last year, the company posted $1.81 earnings per share. CVS Health has set its FY 2026 guidance at 7.900-8.100 EPS. On average, equities analysts predict that CVS Health Corporation will post 8.02 earnings per share for the current fiscal year.
CVS Health Dividend Announcement The company also recently announced a quarterly dividend, which was paid on Monday, August 3rd. Stockholders of record on Thursday, July 23rd were issued a $0.665 dividend. This represents a $2.66 annualized dividend and a dividend yield of 2.7%. The ex-dividend date of this dividend was Thursday, July 23rd. CVS Health’s payout ratio is 70.37%.
CVS Health Profile (Free Report)
CVS Health Corporation is a diversified healthcare company that operates a large network of retail pharmacies, pharmacy benefit management services and health care solutions. Headquartered in Woonsocket, Rhode Island, the company traces its roots to the early 1960s and has grown into an integrated provider of prescription drugs, over‑the‑counter products, clinical services and health insurance offerings. Its operating model combines retail pharmacy locations and in‑store clinics with broader pharmacy and health plan capabilities.
Key business activities include CVS Pharmacy retail operations, MinuteClinic walk‑in medical clinics and HealthHUB locations that offer expanded clinical services.
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A month has gone by since the last earnings report for CVS Health (CVS - Free Report) . Shares have added about 1% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is CVS Health due for a pullback? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent catalysts for CVS Health Corporation before we dive into how investors and analysts have reacted as of late.
CVS Health Tops Q2 Earnings and Revenue EstimatesCVS Health Corporation reported second-quarter 2026 adjusted earnings per share of $2.58 per share, up 42.5% year over year. The figure beat the Zacks Consensus Estimate by 37.97%. Revenues rose 7.3% to $106.10 billion and surpassed the consensus mark by 5.91%.
The upside reflected stronger adjusted operating income across all operating segments, led by Health Care Benefits. Medical membership was 26.0 million at quarter-end.
Health Care Benefits revenues increased 3.5% year over year to $37.54 billion. The rise was driven by growth in the Government business, partly offset by the company’s exit from the individual exchange business in 2026.
Health Services revenues rose 11.5% to $51.80 billion. The improvement was supported by pharmacy drug mix and brand inflation, partially offset by continued pharmacy client price improvements.
Pharmacy & Consumer Wellnes srevenues jumped 0.7% to $33.82 billion. Growth from pharmacy drug mix, higher prescription volume, Rite Aid asset contributions and brand inflation was largely offset by regulatory-related price reductions, generic drug introductions and reimbursement pressure.
CVS Health’s Margin Performance Improves
CVS Health’s gross profit, calculated as total revenues less cost of products sold and health care costs, came in at $15.75 billion, up 15.9% year over year. Gross margin expanded 110 basis points (bps) year over year to 14.8%.
Operating income surged 97.5% to $4.70 billion, outpacing revenue growth. The improvement reflected higher adjusted operating income across all operating segments and the absence of $833 million in legacy litigation charges recorded in the prior-year quarter. Operating margin expanded 200 bps to 4.4%.
Adjusted operating income rose 35.4% to $5.16 billion. Adjusted operating margin improved 100 bps to 4.9%, aided by operating expenses declining to $11.05 billion from $11.21 billion in the year-ago quarter.
CVS Health’s Liquidity and Capital Position Improve
CVS Health ended the quarter with cash and cash equivalents of $11.33 billion, up from $9.54 billion at March-end. Long-term debt stood at $59.45 billion, down from $60.53 billion at first quarter-end.
Cumulative net cash provided by operating activities was $10.59 billion compared with $6.45 billion in the prior-year period.
CVS Health also paid $1.73 billion in dividends during the first half of 2026. Continued debt reduction and disciplined capital returns remain important watch items as the company advances its operating recovery.
CVS Health Raises 2026 Guidance
Management raised its full-year 2026 targets following the quarter’s performance. CVS lifted its GAAP diluted earnings per share outlook to a range of $6.84-$7.04 from $6.24-$6.44 and boosted adjusted earnings guidance to $7.90-$8.10 from $7.30-$7.50. The Zacks Consensus Estimate expects 2026 adjusted earnings per share to be $7.46.
Revenues for the year are projected to be at least $414 billion, up from the earlier projection of at least $405 billion. The Zacks Consensus Estimate for the same stands at $409.0 billion.
The company also increased its cash flow from operations outlook to at least $11.5 billion from at least $9.5 billion. CVS said the update reflects improved expectations for the Health Care Benefits and Pharmacy & Consumer Wellness segments while maintaining a cautious view for the remainder of the year, given elevated cost trends and potential macroeconomic headwinds.
How Have Estimates Been Moving Since Then?It turns out, estimates revision have trended downward during the past month.
The consensus estimate has shifted -6.08% due to these changes.
VGM ScoresAt this time, CVS Health has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. However, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, CVS Health has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry PlayerCVS Health belongs to the Zacks Medical Services industry. Another stock from the same industry, Icon PLC (ICLR - Free Report) , has gained 1.5% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026.
Icon PLC reported revenues of $2.06 billion in the last reported quarter, representing a year-over-year change of +2.3%. EPS of $2.56 for the same period compares with $3.26 a year ago.
Icon PLC is expected to post earnings of $2.69 per share for the current quarter, representing a year-over-year change of -18.7%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.3%.
Icon PLC has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.
Appointments can be scheduled through the CVS Health app or CVS.com and walk-ins are accepted WOONSOCKET, R.I., Sept. 3, 2026 /PRNewswire/ -- CVS Health® (NYSE: CVS) today announced that updated 2026-2027 COVID-19 vaccines are now available at CVS Pharmacy® and MinuteClinic® locations for patients at no-cost with most insurance plans.
Did CVS Health Corporation Insiders Breach their Fiduciary Duties to Shareholders? PR Newswire
NEW YORK, Sept. 2, 2026
Shareholders are encouraged to contact the firm to discuss their rights and options at no cost or obligation. We would handle any matter on a contingent fee basis, whereby you would not be responsible for out-of-pocket payment of our legal fees or expenses.
Shareholders should contact the firm immediately as there may be limited time to enforce your rights.
, /PRNewswire/ -- Halper Sadeh LLC, an investor rights law firm, is investigating whether certain officers and directors of CVS Health Corporation (NYSE: CVS) breached their fiduciary duties to shareholders.
If you currently own CVS stock and are a long-term shareholder, you may be able to seek corporate governance reforms, the return of funds back to the company, a court-approved financial incentive award, or other relief and benefits. Please click here to learn more about your legal rights and options or contact Daniel Sadeh or Zachary Halper at (212) 763-0060 or [email protected] or [email protected].
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Shareholder involvement can help improve a company's policies, practices, and oversight mechanisms to create a more transparent, accountable, and effectively managed organization, which can enhance shareholder value.
Halper Sadeh LLC represents investors all over the world who have fallen victim to securities fraud and corporate misconduct. Our attorneys have been instrumental in implementing corporate reforms and recovering millions of dollars on behalf of defrauded investors.
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Shareholders are encouraged to contact the firm to discuss their rights and options at no cost or obligation. We would handle any matter on a contingent fee basis, whereby you would not be responsible for out-of-pocket payment of our legal fees or expenses.
Shareholders should contact the firm immediately as there may be limited time to enforce your rights.
, /PRNewswire/ -- Halper Sadeh LLC, an investor rights law firm, is investigating whether certain officers and directors of CVS Health Corporation (NYSE: CVS) breached their fiduciary duties to shareholders.
If you currently own CVS stock and are a long-term shareholder, you may be able to seek corporate governance reforms, the return of funds back to the company, a court-approved financial incentive award, or other relief and benefits. Please click here to learn more about your legal rights and options or contact Daniel Sadeh or Zachary Halper at (212) 763-0060 or [email protected] or [email protected].
Why Your Participation Matters:
Shareholder involvement can help improve a company's policies, practices, and oversight mechanisms to create a more transparent, accountable, and effectively managed organization, which can enhance shareholder value.
Halper Sadeh LLC represents investors all over the world who have fallen victim to securities fraud and corporate misconduct. Our attorneys have been instrumental in implementing corporate reforms and recovering millions of dollars on behalf of defrauded investors.
Attorney Advertising. Prior results do not guarantee a similar outcome.
Contact Information:
Halper Sadeh LLC
One World Trade Center
85th Floor
New York, NY 10007
Daniel Sadeh, Esq.
Zachary Halper, Esq.
(212) 763-0060
[email protected]
[email protected]
https://www.halpersadeh.com
Key Takeaways CVS Health generated about $10.6B in YTD operating cash flow and ended Q2 with roughly $2.7B in cash. CVS expects leverage to improve from about 3.5x as it executes its 2026 outlook and reduces leverage. CVS assumes no 2026 buybacks and limited 2027 repurchases, keeping balance-sheet improvement a priority. CVS Health (CVS - Free Report) maintained a strong balance sheet throughout the first half of 2026, supported by robust cash generation and disciplined capital deployment.
The company has generated approximately $10.6 billion in operating cash flow year to date, reflecting strong earnings and improvements in working capital. It ended the second quarter with roughly $2.7 billion of cash at the parent company and unrestricted subsidiaries. The company reported a leverage ratio of approximately 3.5 times in the second quarter and expects the ratio to improve further as it executes against its 2026 outlook. CVS raised its full-year operating cash flow outlook to at least $11.5 billion, providing additional capacity to reduce leverage and strengthen financial flexibility.
CVS also remains committed to shareholder returns, having distributed more than $1.7 billion through dividends year to date. However, the company is maintaining a cautious approach toward share repurchases. Its current 2026 outlook assumes no share buybacks, with additional capital deployment opportunities to be evaluated as leverage improves.
This trend extends into 2027, with repurchases assumed to be limited to offsetting share dilution rather than supporting incremental buybacks. This suggests that balance-sheet improvement remains a near-term capital allocation priority.
Peer UpdateWith no debt on Align Technology’s (ALGN - Free Report) balance sheet, it looks quite comfortable from the liquidity point of view. The company’s cash and cash equivalents totaled $1.10 billion at the end of second-quarter 2026. Second-quarter operating cash flow totaled $192.8 million, while free cash flow was $157.1 million after $35.7 million of capital expenditures. ALGN repurchased about 393,400 shares for $67 million during the quarter at an average price of $169.45. As of June 30, $733.3 million remained under the $1 billion authorization announced in April 2025.
Cardinal Health (CAH - Free Report) ended fiscal 2026 with $4.9 billion of cash and $5.0 billion of adjusted free cash flow. The company repurchased about $1.4 billion of shares during the year and received a $5.0 billion increase to its repurchase authorization. This liquidity supports ongoing investment, tuck-in acquisitions and shareholder returns while preserving financial flexibility.
CVS’ Price Performance, Valuation and EstimatesOver the past year, CVS Health shares have risen 31.1% compared with the industry’s 10.8% growth.
Image Source: Zacks Investment Research
CVS shares are trading at a forward five-year price-to-sales ratio of 0.29, lower than the industry average of 0.50. The stock has a Value Score of A.
Image Source: Zacks Investment Research
The consensus estimate for the company’s 2026 earnings has been showing a bullish trend.
Image Source: Zacks Investment Research
CVS currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Shares of CVS Health (CVS +2.69%) rallied out of the gate on Tuesday morning, adding as much as 3.7%. As of 11:20 a.m. ET, the stock was still up 3.4%.
The catalyst that sent the healthcare giant higher was bullish commentary from one Wall Street analyst.
Image source: The Motley Fool.
A top pick Jefferies analyst Brian Tanquilut affirmed his buy rating on CVS with a $120 price target. For those keeping score at home, that represents 28% upside compared to Monday's closing price.
The analyst called CVS one of his top picks and the firm's top large-cap healthcare services pick. He cited recent management commentary to support the bullish call, noting it suggests earnings per share (EPS) of at least $8.44 for 2027, with the potential for additional upside. Moreover, the company's share buybacks -- which are expected to resume in late 2026 or early 2027 -- are expected to bolster the stock price.
Finally, the ongoing recovery at CVS-owned Aetna bodes well for the company's future results. Aetna has taken a disciplined approach to its Medicare Advantage bids, leading to notable margin expansion. The health insurer and managed care company has increased its operating income by more than $2 billion year over year so far in 2026, indicating that the company's thoughtful approach to pricing is bearing fruit.
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There's little question that the turnaround at CVS is gaining steam, as the company has beaten Wall Street's expectations in each of the past four quarters. Moreover, when the company reported its Q2 results in early August, management significantly increased its full-year guidance. CVS's forecast now calls for adjusted EPS of $8.00, representing 19% growth at the midpoint of its guidance, up from its outlook of $7.40 and 10% growth issued just three months ago.
To be clear, CVS still has a lot to prove. But at 26 times earnings, the price is right.
Danny Vena, CPA has no position in any of the stocks mentioned. The Motley Fool recommends CVS Health. The Motley Fool has a disclosure policy.
Key Takeaways UnitedHealth is seeing improving results across UnitedHealthcare and Optum, boosting its outlook.UNH raised full-year operating earnings outlooks to at least $12B for UnitedHealthcare and $2.2B for Optum.CVS faces 2027 Caremark headwinds, while UNH offers stronger returns and more attractive valuation. CVS Health (CVS - Free Report) and UnitedHealth Group (UNH - Free Report) , both S&P 500 companies, are two of the biggest players in the U.S. health insurance industry. CVS competes through its Aetna subsidiary, acquired in 2018, offering a broad range of products and related services, including medical, pharmacy, dental and behavioral health plans, medical management capabilities, and Medicare Advantage and Medicare Supplement plans. The company also operates Health Services, Pharmacy & Consumer Wellness and Corporate/Other segments.
UnitedHealth, on the other hand, sells a broad range of health benefits through UnitedHealthcare, serving individuals and employers, seniors and other Medicare-eligible consumers, as well as economically disadvantaged and medically underserved populations. The company also has an information and technology-enabled health services business called Optum, comprising Optum Health, Optum Insight and Optum Rx. The divisions combine capabilities in value-based care, population health, health care operations, data and analytics and pharmacy care services.
Over the past six months, CVS and UNH shares have risen 13.9% and 33.2%, respectively, both outperforming the S&P 500 composite’s 11.9% growth.
Image Source: Zacks Investment Research
Let’s take a closer look at which stock has the stronger investment case today.
The Case for CVSCVS Health is implementing technology infrastructure changes to modernize its platforms and accelerate data sharing and connectivity with providers and payer partners. The company has committed to invest $20 billion over the next decade to transform the health care experience through emerging technologies, with a focus on building a more consumer-based health care technology business.
Aetna’s margin recovery is becoming an important part of CVS’ long-term growth story. Efforts around strengthening clinical programs, cost management, pricing and other operating improvements have driven more than $2 billion of year-over-year improvement in adjusted operating income so far in 2026. Management raised Health Care Benefits’ adjusted operating income outlook to $5.03-$5.37 billion for 2026, more than $1 billion above its previous guidance. Beyond pricing and utilization management, Aetna is simplifying claims and provider interactions through tools such as Claims Assist Manager and the Aetna Clinical Collaboration program.
The company’s Pharmacy and Consumer Wellness segment is gaining from higher prescription volume, including contributions from the Rite Aid transaction, alongside pharmacy drug mix and brand inflation. With the growing demand for GLP-1 medications, CVS Health is expanding support for these treatments across its more than 9,000 CVS Pharmacy locations and MinuteClinic, with virtual services available in nearly all states.
CVS raised its 2026 adjusted earnings per share (EPS) guidance to a range of $7.90-$8.10 and now expects total revenues to be at least $414 billion. However, Caremark faced pressure in its 340B business during the quarter, with management expecting related dynamics to weigh on Pharmacy Services and create a headwind in 2027. Caremark membership is also expected to decline next year amid changes in approaches to client renewals and the selling season, alongside product actions and market exits by some health plan customers.
The Case for UNHUnitedHealth Group is driving stronger financial results on notable improvements across its two businesses. In the second quarter of 2026, UnitedHealthcare's better-than-expected performance was led by improved results in Medicare Advantage. The company’s actions around benefit design, care management models and network curation helped keep Medicare medical cost trends below expectations, while prior-year development, favorable respiratory season and weather patterns also contributed.
UNH is working to address the gap between lagging reimbursement rates and underlying medical cost trends and is also partnering with states to support the long-term sustainability of Medicaid benefits and help identify and reduce fraud, waste and abuse.
Meanwhile, Optum remains a key growth engine, with all three segments performing ahead of plan through the first half of this year. Optum Health’s return to its integrated value-based care delivery model resulted in another quarter of better care management and operating discipline.
Optum Rx has been leading an industry-wide shift toward transparency and fee-based services over the last few years, driving new customer wins while keeping retention rates in the high 90s. Optum Insight is seeing increasing traction for its AI-first enterprise approach, with products such as AI-enabled coding and real-time payer and provider interfaces, making health care simpler, faster and more affordable.
The company increased its full-year operating earnings outlook for UnitedHealthcare to at least $12 billion and at least $2.2 billion for Optum Health, reflecting ongoing operational improvements.
As of June 30, UNH’s cumulative operating cash flows were roughly $11 billion, or 1.9X net income, providing ample capital to strengthen the balance sheet, invest in growth and return value to shareholders. During the quarter, the company returned $2.1 billion to shareholders through dividends, with the annualized dividend raised to $9.28 per share.
Estimate Trend for CVS and UNHThe Zacks Consensus Estimate for CVS Health’s 2026 EPS implies year-over-year growth of 18.1% to $7.97. Estimates have jumped 7.1% in the past 60 days.
Image Source: Zacks Investment Research
The consensus mark for UnitedHealth Group’s 2026 EPS has risen 8.4% to $19.82 in the past 60 days. The estimate calls for a 21.2% increase from 2025.
Image Source: Zacks Investment Research
CVS & UNH’s ValuationCVS trades at a forward sales multiple of 0.28, higher than its historical five-year median of 0.26. Meanwhile, UNH has a sales multiple of 0.78, representing a 35% discount to its five-year median of 1.20.
Image Source: Zacks Investment Research
ConclusionCVS Health is making progress with Aetna’s margin recovery, gaining from Pharmacy & Consumer Wellness momentum, and has also raised its 2026 financial outlook. Meanwhile, Caremark is heading into 2027 with some challenges, including 340B-related headwinds and lower expected membership. UnitedHealth Group is seeing improving results across UnitedHealthcare and Optum, alongside strong operating cash flows and higher operating earnings expectations.
Both CVS Health and UnitedHealth Group are seeing upward revisions to their 2026 EPS estimates. Still, based on their respective historical multiples, UNH currently appears to be more attractively valued than CVS while also delivering a stronger six-month return. Considering all, UNH stands out as the stronger investment option now.
UNH sports a Zacks Rank #1 (Strong Buy), while CVS carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.
Demand for GLP-1 drugs has soared in recent years due to breakthroughs in the field. The list of conditions these medicines can treat has evolved and will continue to do so over the next decade or so, sending the market to new heights. Investors don't want to miss out on this. Thankfully, there are many ways to capitalize on the ongoing GLP-1 boom, even beyond buying shares in the current leaders in the field: Eli Lilly (LLY -0.13%) and Novo Nordisk (NVO -1.41%). Let's consider two stocks to buy that could also cash in on this area's rapid growth: CVS Health (CVS +0.15%) and Roche (RHHBY -2.13%).
Image source: The Motley Fool.
1. CVS HealthCVS Health, a leading pharmacy chain, has performed well over the past 18 months. The company is addressing several issues that have plagued its business, including rising medical costs that have squeezed profits and margins in recent years. But CVS Health is posting much-improved financial results. In the second quarter, the company's revenue increased 7.3% year over year to $106.1 billion, while its adjusted earnings per share (EPS) were $2.58, up 42.5% from the year-ago period.
CVS Health's GLP-1-related efforts could provide another boost to its business. Health insurance coverage for these medicines, particularly in the weight loss market, has been spotty. But CVS has launched initiatives that could help address that problem. The company offers all approved GLP-1 medicines in the U.S., including Eli Lilly's market-leading Zepbound and its oral anti-obesity medicine, Foundayo, as well as Novo Nordisk's Wegovy in subcutaneous and oral formulations.
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CVS Health also offers online visits to assess whether patients are eligible for GLP-1s at a low cost of $29, along with professional support as people move toward their weight-loss goals. All these initiatives could attract many people who have had trouble accessing GLP-1 drugs and boost sales within CVS's pharmacy division. But does any of this make the stock a buy?
Even though CVS's GLP-1 efforts are important, there is much more to the company than that. The good news is that, as we have seen, the rest of the business is performing well. Just as important, CVS Health is well-equipped to benefit from the increase in healthcare spending we should see in the U.S. over the next decade. The company is a leader in several categories within this large market and can help patients through much of their care journey.
CVS Health has a deep footprint in the healthcare sector and has built relationships with patients and communities, with many people relying on the company for prescription drugs for years. That grants CVS Health a competitive advantage, putting it in a strong position to perform well over the long run.
2. Roche Roche, a pharmaceutical leader, has a vast portfolio of products across several therapeutic areas. The company also operates a diagnostics segment, which helps diversify its business beyond its core pharmaceutical unit. Roche generates consistent revenue and earnings. In the first half of the year, the company posted revenue of 30.4 billion Swiss francs ($37.8 billion). The top line decreased 2% when reported in Swiss francs (due to the currency’s strong appreciation compared to the year-ago period), but revenue was up 6% year over year in constant currency. Roche’s EPS was 10.85 CHF ($13.5), up 9% year over year in constant currency.
Roche boasts several growth drivers in its arsenal, including Vabysmo, a medicine that treats several eye-related disorders, Ocrevus, a therapy for multiple sclerosis, and Xolair, a drug for allergic asthma. But the company is also developing highly promising weight-loss medications that could boost its sales.
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One of Roche’s leading anti-obesity medicines is CT-388, an investigational dual GLP-1 and GIP agonist (it mimics the action of both hormones). The dual-pathway approach has proved effective, as evidenced by Eli Lilly’s Zepbound. In a phase 2 study, CT-388 delivered a mean weight loss of up to 22.5% after 48 weeks (placebo-adjusted). These are highly impressive results, considering Eli Lilly’s Zepbound posted a mean weight loss of 20.2% in a phase 3 study over 72 weeks.
CT-388 is now in phase 3 studies, and if successful, it could make Roche a leader in the GLP-1 category. There is always the risk of a clinical setback, but even if that happens, Roche has a deep pipeline and an approved portfolio beyond this single candidate, including other weight-loss medicines it is developing. The company is well-positioned to capitalize on the GLP-1 boom, but even if it doesn’t, Roche has the innovative capabilities and a diversified enough business to overcome setbacks in this field and still perform well over the long run.
CVS Health survey finds more than 60 percent of consumers say they are likely to get a flu shot this season. Expanded testing and treatment services help make CVS Pharmacy a convenient destination for seasonal care.
Key Takeaways CVS Health's Pharmacy and Consumer Wellness revenues neared $34 billion in the second quarter.CVS Health's adjusted operating income rose more than 10%, driven by pharmacy strength and Rite Aid.CVS Health now expects at least $6.4 billion in full-year adjusted operating income. CVS Health (CVS - Free Report) is building strong momentum in its Pharmacy and Consumer Wellness segment. The segment’s broad footprint, as of June 30, 2026, includes nearly 9,000 retail locations, online retail pharmacy websites, retail specialty pharmacy stores, compounding pharmacies and branches for infusion and enteral nutrition services.
In the second quarter, Pharmacy and Consumer Wellness generated revenues of nearly $34 billion, a modest increase from the prior-year quarter, primarily driven by pharmacy drug mix, increased prescription volume and brand inflation. Following the completion of the acquisition of select Rite Aid assets nationwide last year, CVS acquired the prescription files of 626 former Rite Aid and Bartell Drugs pharmacies across 15 states. As a result of the transactions, CVS Pharmacy now serves more than nine million former Rite Aid and Bartell Drugs patients. The incremental prescription volume has provided another tailwind for the segment.
On a same-store basis, total revenues increased slightly in the quarter, and same-store pharmacy sales grew approximately 3%. Same-store front store sales rose 100 basis points compared with the prior-year quarter. However, these gains were affected by regulatory-related reductions in select drug prices and the impact of recent generic drug introductions, while pharmacy reimbursement pressure continued to remain another headwind.
The segment’s profitability also improved alongside revenues. Adjusted operating income came in at nearly $1.5 billion, up more than 10% from the prior year, driven mainly by strength in the pharmacy business and contributions from the Rite Aid transaction. This was again moderated by continued business investments and the impact of consumer dynamics.
CVS is carrying the strength of its strong pharmacy performance through the rest of the year. Management now expects the segment's adjusted operating income of at least $6.4 billion for the full year, up $220 million from the prior guidance, reflecting stronger quarterly results and continued confidence in pharmacy performance.
CVS Health’s Peer UpdatesDaVita (DVA - Free Report) announced a new value-based care agreement to deliver comprehensive, coordinated care to Humana Medicare Advantage members with chronic kidney disease (CKD) stages 3B–5. The partnership, launched on July 1, builds on the organizations’ long-standing collaboration in end-stage kidney disease and expands earlier into the disease journey when intervention can have the greatest impact. In the second quarter, DaVita reported $3.55 billion in revenues, up 5.2% year over year, while adjusted earnings per share (EPS) from continuing operations were $4.02, up 36.3% from the prior-year quarter.
Cardinal Health (CAH - Free Report) is expanding its at-Home Solutions' growth strategy with two definitive agreements. The company is set to acquire Diabetes Health business of AdaptHealth Corp. and Strive Medical, a multi-specialty supply provider with a focus on urology. The transactions have a combined value of roughly $360 million in cash, subject to working capital adjustments. Both agreements enhance the framework established by Cardinal Health's most recent acquisition of Advanced Diabetes Supply.
CVS’ Price Performance, Valuation and EstimatesOver the past year, CVS Health shares have risen 31.1% compared with the industry’s 13.4% growth.
Image Source: Zacks Investment Research
CVS shares are trading at a forward five-year price-to-sales ratio of 0.28, lower than the 0.54 industry average.
Image Source: Zacks Investment Research
The consensus estimate for the company’s 2026 and 2027 earnings has been showing a bullish trend.
Image Source: Zacks Investment Research
CVS currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Stock to Watch: CVS Health (CVS - Free Report) Headquartered in Woonsocket, RI, CVS Health Corporation (formerly known as CVS Caremark Corporation) is a health solutions company with integrated offerings across the entire spectrum of pharmacy care. On Sep 3, 2014, CVS Caremark Corporation announced a change of its corporate name to CVS Health to reflect its broader healthcare commitment. In 2018, CVS Health acquired insurance giant Aetna for $70-billion.
CVS is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
It also boasts a Value Style Score of A thanks to attractive valuation metrics like a forward P/E ratio of 11.66; value investors should take notice.
11 analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.53 to $7.97 per share. CVS also boasts an average earnings surprise of +20.5%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, CVS should be on investors' short list.
CVS Health (CVS +0.15%) is a vertically integrated healthcare giant. It has around 9,000 retail pharmacy locations, more than 1,000 walk-in and primary care medical clinics, and is a leading pharmacy benefits manager with approximately 87 million plan members. Its Aetna segment is No. 2 in health insurance market share, according to the most recent National Association of Insurance Commissioners figures.
The company reported second-quarter earnings on Aug. 5. Revenue was $106.1 billion, up 7.3% year over year. Earnings per share (EPS) were up 188% over the same period, to $2.31.
CVS is predicting revenue of at least $414 billion in 2026, up from earlier estimates of at least $405 billion. Yearly EPS was forecasted between $6.84 and $7.04, again an increase from the earlier guidance of $6.24 to $6.44.
Image source: Getty Images.
Unfortunately for shareholders, the initial excitement over the earnings wasn't enough to sustain a rally for the stock.
The company's shares are down more than 12% over the past month, bringing its year-to-date gains down to 17%.
However, analysts are high on the healthcare giant, with an average price target of $116.08, nearly 25% above its current share price. Here are the reasons why the stock is oversold at this point.
What are investors' concerns about the stock? They boil down to certain worries that could weigh on the company's future margins. On the earnings call, management mentioned membership declines at Caremark in 2027 and noted ongoing revenue headwinds in the 340B drug pricing program due to manufacturer-imposed restrictions.
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The company's pharmacy benefit manager (PBM) side is facing regulatory scrutiny. That includes heightened Federal Trade Commission (FTC) oversight that led to an antitrust settlement with Caremark in July and proposed legislation targeting PBM pricing transparency. While the company's health benefits segment (Aetna) saw its medical benefit ratio improve to 87.4%, investors remain skeptical about whether medical cost trends will stay contained, given broader industry inflation in healthcare utilization.
The stock is priced for a buy now, though The company doesn't really have a direct competitor because it operates in three different healthcare segments: PBM through Caremark, health insurance through its Aetna segment, and, of course, its pharmaceutical segment.
UnitedHealth Group, which mirrors CVS' vertically integrated model by combining health insurance with pharmacy benefit management and provider services, is the closest thing to a rival to CVS. When you compare the two, CVS is trading at less than 12 times forward earnings, while UnitedHealth Group is trading at just under 20 times earnings.
The company's strong dividend history, health CVS has never cut its dividend and has increased it by more than 56% over the past decade. It's now $2.66 per quarterly share. The yield on that dividend is 2.8% at its current share price, more than twice the S&P 500 average.
With a cash payout ratio below 30% of free cash flow and an adjusted earnings payout ratio below 40%, its dividend is well protected. A dividend cut is unlikely under current operating conditions.
Adaptation is built into the company's DNA CVS has been around for 63 years, and that's because it can constantly adapt to regulatory and market changes.
The two primary reasons CVS is likely to thrive over the long haul stem from its unmatched vertical integration and its proactive pivot to new business models.
CVS controls almost every step of the healthcare dollar, creating a self-sustaining ecosystem that insulates it from reliance on any single revenue stream. That ecosystem means that even if one part of the chain is seeing margin pressure, another area is likely to benefit. Considering the company's guidance and its performance so far this year, it's clear that the stock has considerable upside.
The vertically integrated healthcare model across insurance, PBM, pharmacy, and clinical care capabilities underscores CVS Health's multi-year margin recovery prospects. This strategy has driven the better patient outcomes, superior membership retention, moderating medical benefit ratios, and robust revenue/margin expansion. Recent selloff has unlocked a cheaper P/E of 11.78x, along with the dual return prospects across capital appreciation to my LTPT of $129.90 and dividend yield of 2.84%.
One of the hotter stocks in big healthcare just now is pharmacy chain mainstay CVS Health (CVS -0.67%). The company's shares have raced more than 18% higher year to date, comparing favorably to the benchmark S&P 500 index's sub-13% rise.
And, according to most analysts tracking the stock, the stock's not done yet. According to data compiled by TipRanks, the consensus pundit price target is $114.59 per share, which is 22% above its most recent closing level.
Let's open the doors of this busy pharmacy to determine how it got here, and whether it can indeed continue to move higher.
Image source: Getty Images.
Beating analysts' earning estimates Any company that delivers two estimates-crushing quarters in a row is going to be a juicy buy candidate for investors. In all three of the quarterly earnings reports that CVS published this calendar year, it topped consensus analyst estimates for revenue and profitability. Investors are more impressed by the latter, naturally, so the company looked particularly good with its convincing beats in both the first and second frames.
First-quarter net income not under generally accepted accounting principles (non-GAAP, or adjusted) came in at $2.57 per share against the analyst consensus of $2.21. The gap for the following reporting period was much wider, at $2.58 and $1.83, respectively. Better -- since stocks trade on future potential instead of trailing performance -- CVS raised both its top- and bottom-line guidance in each of those two quarters.
What's going right for CVS? A major factor is its healthcare benefits segment, anchored by giant insurer Aetna, which saw a sharp drop in its medical benefit ratio (MBR) in the first quarter. The MBR is a key metric in the health insurance field, as it measures the percentage of collected premiums that are paid out for claims (so a lower figure is better for CVS).
The company's fourth quarter of 2025 MBR was 94.8%, then swooned to 84.6% before increasing modestly to 87.4% in the two subsequent periods. Keeping more premium money positively affected profitability: Adjusted operating income for healthcare benefits rose 52% year over year in the first quarter to over $3 billion, and 85% in the second quarter to $2.4 billion.
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Big bunch of buy recommendations In the analyst pen, the bulls are running wild for CVS. The TipRanks page on the company shows that 16 of the 17 prognosticators it tracks rate the stock a buy. One CVS optimist is UBS' Kevin Caliendo, who raised his price target (to $126 per share from $122) and maintained a buy recommendation after that second-quarter report.
While he acknowledged that the company was facing challenges, including operational missteps at its CVS Caremark pharmacy benefits manager (PBM), he was bullish about the vast improvements in healthcare benefits. He also noted that, in his estimation, the prospects for CVS' pharmacy and consumer wellness segment -- its retail business -- are growing.
Though 22% might sound like an ambitious price-target growth forecast for the stock of a large, sprawling, and well-established company, CVS' insurance operations are going gangbusters, and the company is selling into an American population that's getting proportionally older (and therefore requiring more of what it sells). Personally, I think CVS stock could rise past that level.
Allworth Financial LP bought a new stake in CVS Health Corporation (NYSE:CVS – Free Report) in the 2nd quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm bought 33,215 shares of the pharmacy operator’s stock, valued at approximately $3,436,000.
Other institutional investors have also modified their holdings of the company. BlackRock Inc. acquired a new stake in shares of CVS Health in the 2nd quarter valued at $12,747,462,000. Norges Bank purchased a new position in CVS Health in the fourth quarter valued at $1,666,265,000. Wellington Management Group LLP raised its stake in CVS Health by 193.2% in the fourth quarter. Wellington Management Group LLP now owns 18,564,392 shares of the pharmacy operator’s stock valued at $1,473,270,000 after buying an additional 12,233,675 shares in the last quarter. Pzena Investment Management LLC purchased a new stake in CVS Health during the 2nd quarter worth about $1,217,558,000. Finally, Bank of New York Mellon Corp acquired a new position in shares of CVS Health during the 2nd quarter worth about $932,454,000. 80.66% of the stock is owned by institutional investors and hedge funds.
CVS Health Stock Performance NYSE CVS opened at $93.01 on Friday. The company has a quick ratio of 0.66, a current ratio of 0.87 and a debt-to-equity ratio of 0.74. CVS Health Corporation has a fifty-two week low of $69.51 and a fifty-two week high of $110.68. The business has a fifty day moving average of $102.02 and a 200-day moving average of $88.86. The stock has a market cap of $118.96 billion, a price-to-earnings ratio of 24.61, a price-to-earnings-growth ratio of 0.85 and a beta of 0.61.
CVS Health (NYSE:CVS – Get Free Report) last issued its quarterly earnings results on Wednesday, August 5th. The pharmacy operator reported $2.58 earnings per share for the quarter, beating the consensus estimate of $1.87 by $0.71. The company had revenue of $106.10 billion during the quarter, compared to the consensus estimate of $100.03 billion. CVS Health had a return on equity of 13.12% and a net margin of 1.18%.CVS Health’s revenue was up 7.3% on a year-over-year basis. During the same period in the previous year, the firm posted $1.81 EPS. CVS Health has set its FY 2026 guidance at 7.900-8.100 EPS. As a group, analysts predict that CVS Health Corporation will post 8.02 earnings per share for the current fiscal year. CVS Health Dividend Announcement The company also recently declared a quarterly dividend, which was paid on Monday, August 3rd. Investors of record on Thursday, July 23rd were paid a dividend of $0.665 per share. The ex-dividend date of this dividend was Thursday, July 23rd. This represents a $2.66 annualized dividend and a yield of 2.9%. CVS Health’s payout ratio is 70.37%.
Wall Street Analysts Forecast Growth Several research analysts have recently issued reports on CVS shares. HSBC restated a “hold” rating and issued a $103.00 target price on shares of CVS Health in a report on Monday, July 6th. Wall Street Zen raised CVS Health from a “buy” rating to a “strong-buy” rating in a report on Saturday, August 8th. Piper Sandler reiterated an “overweight” rating and set a $113.00 target price on shares of CVS Health in a research report on Monday, June 1st. Morgan Stanley boosted their target price on CVS Health from $106.00 to $111.00 and gave the company an “overweight” rating in a report on Thursday, June 4th. Finally, Sanford C. Bernstein raised their price target on CVS Health from $94.00 to $106.00 and gave the stock an “outperform” rating in a research note on Tuesday, May 12th. Twenty-two research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. According to MarketBeat, CVS Health currently has an average rating of “Moderate Buy” and an average price target of $107.17.
Check Out Our Latest Stock Report on CVS
CVS Health Company Profile (Free Report)
CVS Health Corporation is a diversified healthcare company that operates a large network of retail pharmacies, pharmacy benefit management services and health care solutions. Headquartered in Woonsocket, Rhode Island, the company traces its roots to the early 1960s and has grown into an integrated provider of prescription drugs, over‑the‑counter products, clinical services and health insurance offerings. Its operating model combines retail pharmacy locations and in‑store clinics with broader pharmacy and health plan capabilities.
Key business activities include CVS Pharmacy retail operations, MinuteClinic walk‑in medical clinics and HealthHUB locations that offer expanded clinical services.
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Bank of New York Mellon Corp purchased a new stake in CVS Health Corporation (NYSE:CVS – Free Report) in the second quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor purchased 9,013,571 shares of the pharmacy operator’s stock, valued at approximately $932,454,000. Bank of New York Mellon Corp owned about 0.71% of CVS Health as of its most recent filing with the Securities and Exchange Commission (SEC).
Several other hedge funds and other institutional investors also recently bought and sold shares of the business. Vanguard Group Inc. grew its position in shares of CVS Health by 1.5% during the fourth quarter. Vanguard Group Inc. now owns 120,709,530 shares of the pharmacy operator’s stock worth $9,579,508,000 after buying an additional 1,824,424 shares in the last quarter. State Street Corp raised its holdings in CVS Health by 2.1% in the fourth quarter. State Street Corp now owns 60,183,743 shares of the pharmacy operator’s stock valued at $4,776,182,000 after acquiring an additional 1,245,457 shares in the last quarter. Capital International Investors raised its holdings in CVS Health by 3.4% in the fourth quarter. Capital International Investors now owns 27,592,356 shares of the pharmacy operator’s stock valued at $2,189,793,000 after acquiring an additional 900,153 shares in the last quarter. Norges Bank bought a new position in CVS Health during the 4th quarter valued at $1,666,265,000. Finally, Morgan Stanley grew its holdings in CVS Health by 6.3% during the 4th quarter. Morgan Stanley now owns 20,373,774 shares of the pharmacy operator’s stock worth $1,616,863,000 after acquiring an additional 1,211,631 shares in the last quarter. 80.66% of the stock is currently owned by hedge funds and other institutional investors.
Analyst Ratings Changes A number of brokerages have recently issued reports on CVS. Morgan Stanley upped their target price on shares of CVS Health from $106.00 to $111.00 and gave the company an “overweight” rating in a research note on Thursday, June 4th. JPMorgan Chase & Co. lifted their price target on CVS Health from $111.00 to $118.00 and gave the stock an “overweight” rating in a research note on Wednesday, August 12th. HSBC reissued a “hold” rating and issued a $103.00 price objective on shares of CVS Health in a report on Monday, July 6th. Argus increased their target price on CVS Health from $104.00 to $114.00 and gave the stock a “buy” rating in a report on Wednesday. Finally, Bank of America lifted their target price on CVS Health from $100.00 to $110.00 and gave the stock a “buy” rating in a research report on Monday, June 22nd. Twenty-two analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $107.17.
Get Our Latest Analysis on CVS CVS Health Trading Up 0.2% CVS Health stock opened at $93.83 on Friday. CVS Health Corporation has a 1 year low of $69.51 and a 1 year high of $110.68. The firm’s 50-day moving average is $102.19 and its 200-day moving average is $88.83. The company has a debt-to-equity ratio of 0.74, a quick ratio of 0.66 and a current ratio of 0.87. The company has a market cap of $120.01 billion, a P/E ratio of 24.82, a PEG ratio of 0.89 and a beta of 0.61.
CVS Health (NYSE:CVS – Get Free Report) last announced its quarterly earnings data on Wednesday, August 5th. The pharmacy operator reported $2.58 earnings per share for the quarter, beating analysts’ consensus estimates of $1.87 by $0.71. The business had revenue of $106.10 billion during the quarter, compared to the consensus estimate of $100.03 billion. CVS Health had a net margin of 1.18% and a return on equity of 13.12%. The company’s revenue for the quarter was up 7.3% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $1.81 EPS. CVS Health has set its FY 2026 guidance at 7.900-8.100 EPS. On average, equities analysts expect that CVS Health Corporation will post 8.02 earnings per share for the current year.
CVS Health Announces Dividend The business also recently announced a quarterly dividend, which was paid on Monday, August 3rd. Stockholders of record on Thursday, July 23rd were issued a dividend of $0.665 per share. The ex-dividend date of this dividend was Thursday, July 23rd. This represents a $2.66 annualized dividend and a dividend yield of 2.8%. CVS Health’s dividend payout ratio is 70.37%.
About CVS Health (Free Report)
CVS Health Corporation is a diversified healthcare company that operates a large network of retail pharmacies, pharmacy benefit management services and health care solutions. Headquartered in Woonsocket, Rhode Island, the company traces its roots to the early 1960s and has grown into an integrated provider of prescription drugs, over‑the‑counter products, clinical services and health insurance offerings. Its operating model combines retail pharmacy locations and in‑store clinics with broader pharmacy and health plan capabilities.
Key business activities include CVS Pharmacy retail operations, MinuteClinic walk‑in medical clinics and HealthHUB locations that offer expanded clinical services.
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B. Metzler seel. Sohn & Co. AG acquired a new stake in CVS Health Corporation (NYSE:CVS – Free Report) during the 2nd quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The institutional investor acquired 123,784 shares of the pharmacy operator’s stock, valued at approximately $12,805,000.
A number of other large investors have also bought and sold shares of CVS. Elevation Wealth Partners LLC boosted its stake in CVS Health by 41.8% in the 2nd quarter. Elevation Wealth Partners LLC now owns 356 shares of the pharmacy operator’s stock worth $37,000 after purchasing an additional 105 shares during the period. Apella Capital LLC increased its position in shares of CVS Health by 1.7% during the second quarter. Apella Capital LLC now owns 6,940 shares of the pharmacy operator’s stock valued at $724,000 after buying an additional 117 shares during the period. CYBER HORNET ETFs LLC lifted its holdings in shares of CVS Health by 4.1% in the third quarter. CYBER HORNET ETFs LLC now owns 3,442 shares of the pharmacy operator’s stock worth $259,000 after buying an additional 134 shares in the last quarter. Northwestern Mutual Investment Management Company LLC boosted its position in shares of CVS Health by 0.3% in the fourth quarter. Northwestern Mutual Investment Management Company LLC now owns 40,560 shares of the pharmacy operator’s stock valued at $3,219,000 after acquiring an additional 136 shares during the period. Finally, CoreCap Advisors LLC grew its stake in CVS Health by 4.2% during the second quarter. CoreCap Advisors LLC now owns 3,481 shares of the pharmacy operator’s stock valued at $360,000 after acquiring an additional 139 shares in the last quarter. 80.66% of the stock is owned by hedge funds and other institutional investors.
CVS Health Trading Up 0.2% NYSE CVS opened at $93.83 on Friday. The stock’s 50-day simple moving average is $102.19 and its two-hundred day simple moving average is $88.83. CVS Health Corporation has a twelve month low of $69.51 and a twelve month high of $110.68. The company has a quick ratio of 0.66, a current ratio of 0.87 and a debt-to-equity ratio of 0.74. The company has a market capitalization of $120.01 billion, a price-to-earnings ratio of 24.82, a PEG ratio of 0.89 and a beta of 0.61.
CVS Health (NYSE:CVS – Get Free Report) last released its earnings results on Wednesday, August 5th. The pharmacy operator reported $2.58 earnings per share 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 during the quarter, compared to the consensus estimate of $100.03 billion. During the same quarter in the previous year, the company posted $1.81 EPS. CVS Health’s quarterly revenue was up 7.3% compared to the same quarter last year. CVS Health has set its FY 2026 guidance at 7.900-8.100 EPS. Research analysts forecast that CVS Health Corporation will post 8.02 EPS for the current fiscal year. CVS Health Dividend Announcement The firm also recently announced a quarterly dividend, which was paid on Monday, August 3rd. Investors of record on Thursday, July 23rd were issued a dividend of $0.665 per share. The ex-dividend date of this dividend was Thursday, July 23rd. This represents a $2.66 annualized dividend and a dividend yield of 2.8%. CVS Health’s dividend payout ratio (DPR) is currently 70.37%.
Wall Street Analysts Forecast Growth Several analysts have issued reports on CVS shares. Weiss Ratings upgraded shares of CVS Health from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Wednesday, August 5th. JPMorgan Chase & Co. boosted their price target on shares of CVS Health from $111.00 to $118.00 and gave the company an “overweight” rating in a research report on Wednesday, August 12th. Cantor Fitzgerald increased their price objective on CVS Health from $100.00 to $110.00 and gave the stock an “overweight” rating in a research report on Tuesday, July 7th. HSBC reissued a “hold” rating and set a $103.00 price objective on shares of CVS Health in a research note on Monday, July 6th. Finally, Wall Street Zen upgraded CVS Health from a “buy” rating to a “strong-buy” rating in a research note on Saturday, August 8th. Twenty-two analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. According to MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus price target of $107.17.
View Our Latest Analysis on CVS Health
About CVS Health (Free Report)
CVS Health Corporation is a diversified healthcare company that operates a large network of retail pharmacies, pharmacy benefit management services and health care solutions. Headquartered in Woonsocket, Rhode Island, the company traces its roots to the early 1960s and has grown into an integrated provider of prescription drugs, over‑the‑counter products, clinical services and health insurance offerings. Its operating model combines retail pharmacy locations and in‑store clinics with broader pharmacy and health plan capabilities.
Key business activities include CVS Pharmacy retail operations, MinuteClinic walk‑in medical clinics and HealthHUB locations that offer expanded clinical services.
Featured Articles Five stocks we like better than CVS Health 3 Energy Stocks Raising Dividends as the Sector Surges 5 Reasons the S&P 500 Could Keep Rallying Through Year-End Walmart’s Post-Earnings Drop Could Be a Buying Opportunity The Trade Desk’s Earnings Miss Raises a Bigger Question About Its AI Future
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AssuredPartners Investment Advisors LLC bought a new stake in CVS Health Corporation (NYSE:CVS – Free Report) in the 2nd quarter, according to its most recent filing with the Securities & Exchange Commission. The institutional investor bought 5,401 shares of the pharmacy operator’s stock, valued at approximately $559,000.
Several other large investors have also recently added to or reduced their stakes in CVS. Handelsbanken Fonder AB boosted its holdings in shares of CVS Health by 83.6% in the 2nd quarter. Handelsbanken Fonder AB now owns 1,089,694 shares of the pharmacy operator’s stock valued at $112,729,000 after purchasing an additional 496,124 shares during the last quarter. State Street Corp increased its holdings in shares of CVS Health by 2.1% during the 4th quarter. State Street Corp now owns 60,183,743 shares of the pharmacy operator’s stock worth $4,776,182,000 after buying an additional 1,245,457 shares during the last quarter. Legal & General Group Plc raised its position in shares of CVS Health by 0.3% in the 4th quarter. Legal & General Group Plc now owns 9,309,182 shares of the pharmacy operator’s stock worth $738,777,000 after buying an additional 31,249 shares during the period. Deutsche Bank AG boosted its holdings in CVS Health by 28.4% in the fourth quarter. Deutsche Bank AG now owns 4,666,495 shares of the pharmacy operator’s stock valued at $370,333,000 after acquiring an additional 1,031,998 shares during the last quarter. Finally, SG Americas Securities LLC grew its position in CVS Health by 13.7% during the first quarter. SG Americas Securities LLC now owns 1,228,069 shares of the pharmacy operator’s stock valued at $87,459,000 after acquiring an additional 147,827 shares during the period. 80.66% of the stock is currently owned by hedge funds and other institutional investors.
CVS Health Stock Performance CVS Health stock opened at $93.58 on Thursday. The firm has a market capitalization of $119.68 billion, a PE ratio of 24.76, a price-to-earnings-growth ratio of 0.91 and a beta of 0.61. CVS Health Corporation has a one year low of $69.51 and a one year high of $110.68. The stock’s 50 day moving average price is $102.32 and its 200 day moving average price is $88.69. The company has a debt-to-equity ratio of 0.74, a quick ratio of 0.66 and a current ratio of 0.87.
CVS Health (NYSE:CVS – Get Free Report) last issued its quarterly earnings data on Wednesday, August 5th. The pharmacy operator reported $2.58 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.87 by $0.71. CVS Health had a net margin of 1.18% and a return on equity of 13.12%. The company had revenue of $106.10 billion during the quarter, compared to the consensus estimate of $100.03 billion. During the same quarter last year, the company earned $1.81 earnings per share. CVS Health’s revenue for the quarter 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, sell-side analysts expect that CVS Health Corporation will post 8.02 EPS for the current fiscal year. CVS Health Dividend Announcement The company also recently declared a quarterly dividend, which was paid on Monday, August 3rd. Investors of record on Thursday, July 23rd were paid a dividend of $0.665 per share. The ex-dividend date of this dividend was Thursday, July 23rd. This represents a $2.66 annualized dividend and a yield of 2.8%. CVS Health’s payout ratio is 70.37%.
Wall Street Analyst Weigh In Several research firms have recently weighed in on CVS. HSBC reaffirmed a “hold” rating and issued a $103.00 price objective on shares of CVS Health in a research note on Monday, July 6th. Robert W. Baird set a $107.00 price target on shares of CVS Health in a report on Thursday, August 6th. Morgan Stanley lifted their price target on shares of CVS Health from $106.00 to $111.00 and gave the company an “overweight” rating in a research report on Thursday, June 4th. Mizuho boosted their price objective on shares of CVS Health from $110.00 to $115.00 and gave the stock an “outperform” rating in a research note on Monday, June 8th. Finally, Piper Sandler reissued an “overweight” rating and issued a $113.00 price objective on shares of CVS Health in a research report on Monday, June 1st. Twenty-two equities research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $107.17.
Check Out Our Latest Research Report on CVS Health
About CVS Health (Free Report)
CVS Health Corporation is a diversified healthcare company that operates a large network of retail pharmacies, pharmacy benefit management services and health care solutions. Headquartered in Woonsocket, Rhode Island, the company traces its roots to the early 1960s and has grown into an integrated provider of prescription drugs, over‑the‑counter products, clinical services and health insurance offerings. Its operating model combines retail pharmacy locations and in‑store clinics with broader pharmacy and health plan capabilities.
Key business activities include CVS Pharmacy retail operations, MinuteClinic walk‑in medical clinics and HealthHUB locations that offer expanded clinical services.
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Asahi Life Asset Management CO. LTD. purchased a new position in shares of CVS Health Corporation (NYSE:CVS – Free Report) in the second quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund purchased 5,630 shares of the pharmacy operator’s stock, valued at approximately $582,000.
Other institutional investors and hedge funds have also made changes to their positions in the company. Caitong International Asset Management Co. Ltd lifted its stake in CVS Health by 407.2% during the third quarter. Caitong International Asset Management Co. Ltd now owns 350 shares of the pharmacy operator’s stock worth $26,000 after purchasing an additional 281 shares during the last quarter. Swiss RE Ltd. purchased a new position in CVS Health in the fourth quarter valued at approximately $26,000. Sankala Group LLC acquired a new stake in CVS Health during the fourth quarter worth approximately $28,000. Global Trust Asset Management LLC lifted its position in shares of CVS Health by 344.8% during the 1st quarter. Global Trust Asset Management LLC now owns 387 shares of the pharmacy operator’s stock worth $28,000 after buying an additional 300 shares during the last quarter. Finally, Mcguire Capital Advisors Inc. acquired a new position in shares of CVS Health in the 4th quarter valued at $28,000. 80.66% of the stock is owned by institutional investors and hedge funds.
CVS Health Trading Down 1.4% NYSE CVS opened at $93.58 on Thursday. The firm’s fifty day moving average is $102.32 and its two-hundred day moving average is $88.69. CVS Health Corporation has a one year low of $69.51 and a one year high of $110.68. The company has a debt-to-equity ratio of 0.74, a quick ratio of 0.66 and a current ratio of 0.87. The firm has a market cap of $119.68 billion, a PE ratio of 24.76, a P/E/G ratio of 0.91 and a beta of 0.61.
CVS Health (NYSE:CVS – Get Free Report) last announced its earnings results on Wednesday, August 5th. The pharmacy operator reported $2.58 earnings per share for the quarter, topping the consensus estimate of $1.87 by $0.71. CVS Health had a net margin of 1.18% and a return on equity of 13.12%. The business had revenue of $106.10 billion during the quarter, compared to the consensus estimate of $100.03 billion. During the same quarter in the prior year, the firm earned $1.81 earnings per share. The business’s quarterly revenue was up 7.3% compared to the same quarter last year. CVS Health has set its FY 2026 guidance at 7.900-8.100 EPS. Analysts expect that CVS Health Corporation will post 8.02 earnings per share for the current year. CVS Health Announces Dividend The business also recently announced a quarterly dividend, which was paid on Monday, August 3rd. Shareholders of record on Thursday, July 23rd were paid a $0.665 dividend. This represents a $2.66 annualized dividend and a dividend yield of 2.8%. The ex-dividend date was Thursday, July 23rd. CVS Health’s dividend payout ratio (DPR) is 70.37%.
Wall Street Analysts Forecast Growth CVS has been the topic of several research analyst reports. Wall Street Zen upgraded shares of CVS Health from a “buy” rating to a “strong-buy” rating in a research note on Saturday, August 8th. UBS Group upped their price objective on shares of CVS Health from $122.00 to $126.00 and gave the company a “buy” rating in a research note on Thursday, August 6th. Argus raised their price objective on CVS Health from $104.00 to $114.00 and gave the stock a “buy” rating in a report on Wednesday. JPMorgan Chase & Co. lifted their target price on CVS Health from $111.00 to $118.00 and gave the stock an “overweight” rating in a research report on Wednesday, August 12th. Finally, Mizuho boosted their target price on CVS Health from $110.00 to $115.00 and gave the company an “outperform” rating in a report on Monday, June 8th. Twenty-two equities research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $107.17.
Get Our Latest Stock Report on CVS Health
CVS Health Profile (Free Report)
CVS Health Corporation is a diversified healthcare company that operates a large network of retail pharmacies, pharmacy benefit management services and health care solutions. Headquartered in Woonsocket, Rhode Island, the company traces its roots to the early 1960s and has grown into an integrated provider of prescription drugs, over‑the‑counter products, clinical services and health insurance offerings. Its operating model combines retail pharmacy locations and in‑store clinics with broader pharmacy and health plan capabilities.
Key business activities include CVS Pharmacy retail operations, MinuteClinic walk‑in medical clinics and HealthHUB locations that offer expanded clinical services.
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Want some quality dividend stocks to buy, but don't want to break the bank? The stocks listed below offer above-average yields and trade at less than $100. They are an attractive option for investors seeking a balance of high yields and modest valuations.
Novo Nordisk (NVO +2.17%), CVS Health (CVS +0.09%), and Bristol Myers Squibb (BMY +2.35%)are all big names in healthcare. And for income-seeking investors, they can also make for excellent dividend stocks to buy right now. Here’s why.
Image source: Getty Images.
Novo NordiskHealthcare giant Novo Nordisk has been struggling due to rising competition, and its shares are down 17% over the past year. It's been struggling to keep up with its key rival, Eli Lilly, and investors have been dumping the stock as its growth rate has been underwhelming of late.
However, the good news is that Novo Nordisk still has growth opportunities to tap into. It owns the popular GLP-1 drugs Wegovy and Ozempic and is developing additional medications. In the healthcare sector, the excitement often centers on new developments. Unfortunately, Novo Nordisk has been lagging in that area, but it still has many projects ongoing within its pipeline.
Plus, a higher-dose version of semaglutide, the active ingredient in Wegovy and Ozempic, has been associated with significantly greater weight loss, which could intensify competition with Eli Lilly in the future.
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Novo Nordisk is a bit underrated right now, but with the stock trading at just 11 times its trailing earnings and offering a 4% dividend yield, it could be a great buy. The stock closed at just under $45 on Monday.
CVS HealthAnother healthcare stock that looks like a solid value buy these days is CVS Health, which is known for its pharmacies across the country. However, it also has a massive healthcare business, having acquired Aetna in 2018. The overall business is now massive, with CVS generating $415 billion in revenue over the past four quarters.
The stock has been rallying this year as CVS's results have improved and its costs have proven more manageable. Since the start of 2026, shares of the healthcare giant have risen by 18%. It closed just over $94 yesterday as it approaches the $100 mark, but isn't quite there yet. Despite its impressive gains this year, the stock's valuation remains fairly modest, trading at 13 times its estimated future earnings based on analyst expectations.
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At 2.8%, CVS offers an attractive yield, and while it is not as high as Novo Nordisk's, it's still far higher than the S&P 500 average of just over 1%.
Bristol Myers SquibbThe third healthcare stock on this list is pharma giant Bristol Myers Squibb. While it has struggled to win over investors in recent years, it has been rallying this year, especially amid rumors of a potential merger with AstraZeneca. Talks, however, are preliminary, and a deal is by no means a guarantee of going through.
Year to date, the stock is up around 20%, largely due to the recent merger rumors. It's currently trading at around $65 and recently hit a new 52-week high of over $68. But at a forward price-to-earnings multiple of just nine, this is another deeply discounted stock that investors can buy right now. The concern is how the company will navigate patent cliffs and what its future growth will look like. It has, however, been investing in new drugs, and its growth portfolio grew by 15% in its most recent quarter. The overall business generated $13 billion in revenue, up a more modest 6%.
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There is some risk with Bristol Myers, but the low valuation gives investors a bit of a margin of safety. It can be a highly attractive option for dividend investors, as the stock currently yields 3.9%.
Teresa Heitsenrether to join the Board, bringing more than forty years of operating experience across data, analytics and technology at one of the world's largest financial institutions Larry Robbins to depart the Board after two years at CVS Health , /PRNewswire/ -- CVS Health (NYSE: CVS) today announced the appointment of Teresa Heitsenrether to its Board of Directors and departure of Larry Robbins from its Board.
Ms. Heitsenrether joins the CVS Health Board with nearly forty years of financial services leadership experience. She currently serves as Chief Data & Analytics Officer at JPMorgan Chase & Co. and is a member of the firm's Operating Committee. Ms. Heitsenrether will join the Board of Directors effective November 18, 2026.
"Teresa's extensive experience leading complex global businesses and driving technology-enabled transformation will be invaluable as CVS Health continues to innovate on its path to become a consumer focused, health technology company," said David Joyner, Chair and Chief Executive Officer of CVS Health. "We look forward to benefiting from her deep knowledge in data, analytics, artificial intelligence, operational transformation and decades of financial expertise."
"I am excited to join the most trusted healthcare company in the country, and look forward to assisting management as they progress to the next phase in the company's strategic journey," said Teresa Heitsenrether.
A member of the Board since 2024, Mr. Robbins has served on the Audit and Public Policy and External Affairs Committees. His departure from the Board of Directors was effective on August 13, 2026.
"Larry joined our Board at a pivotal moment in CVS's history and was instrumental in helping sharpen our financial and operational focus during this period of transition for the business. From day one, he has been an invaluable and collaborative member of the Board bringing a focused financial perspective and deep knowledge of the health care industry" said David Joyner, Chair and Chief Executive Officer of CVS Health. "We are grateful for Larry's insights and commitment to help strengthen CVS over the course of these important two years, as we laid our foundation for future success."
"Two years ago we approached CVS Health Board and Management with a proposal to refresh corporate governance, improve operating performance and restore financial flexibility and discipline," said Larry Robbins, CEO of Glenview. "The goal was and has always remained to drive better outcomes for CVS customers, stronger opportunities for CVS associates and the restoration of value for CVS lenders and shareholders. We were honored to partner with the Board in a process of constructive evolution that has led to a cultural renaissance at the Company, significantly improved customer experience, a commitment to technology and innovation, a fully repaired balance sheet, dramatically improved financial performance and the recruitment and elevation of many talented leaders to form the leadership group of a revitalized CVS Health."
About Teresa Heitsenrether
Teresa Heitsenrether is Executive Vice President and Chief Data & Analytics Officer of JPMorgan Chase and a member of the firm's Operating Committee. She brings nearly forty years of financial services leadership experience, with extensive expertise in data and analytics, artificial intelligence, technology-driven transformation, risk management and complex global operations. Prior to her current role, Heitsenrether held several senior leadership positions at JPMorgan Chase, including CEO of Securities Services and Global Head of Prime Brokerage & Equity Financing, where she led large-scale business transformations and international growth initiatives. She has been recognized by American Banker and Barron's among the most influential women in finance and holds an M.B.A. from New York University and a B.S. in Finance from Fordham University.
About CVS Health
CVS Health is a leading health solutions company simplifying health care one person, one family and one community at a time. As of June 30, 2026, the Company had approximately 9,000 retail pharmacy locations, more than 1,000 walk-in and primary care medical clinics and a leading pharmacy benefits manager with approximately 87 million plan members. The Company also serves an estimated 37 million people through a broad range of health insurance products and related services. The Company's integrated model uses personalized, technology driven services to connect people to simply better health, increasing access to quality care, delivering better outcomes, and lowering overall costs.
Media contact
Ethan Slavin
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Investor contact
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Key Takeaways CVS Health's Q2 EPS rose more than 40%, driven mainly by improved Health Care Benefits profitability.CVS' Health Care Benefits AOI improved by more than $2 billion year over year so far in 2026.CVS now expects 2026 Health Care Benefits AOI of $5.03B-$5.37B, over $1B above prior guidance. In the second quarter of 2026, CVS Health (CVS - Free Report) delivered adjusted earnings per share (EPS) of $2.58, up more than 40% from the prior-year quarter. The strong earnings growth was mainly driven by improved adjusted operating income in the Health Care Benefits segment.
The division generated more than $37 billion in revenues, rising more than 3% year over year, as growth in the government business more than offset some of the impact of CVS’ planned exit from the Individual Exchange business in 2026. Medical membership was approximately 26 million at quarter end, flat sequentially but down roughly 700,000 from the prior-year quarter. The decline mainly reflected CVS’ Individual Exchange exit, partly offset by gains in commercial fee-based membership.
Adjusted operating income (AOI) came in at approximately $2.4 billion, while the medical benefit ratio (MBR) was 87.4%. Both improved meaningfully from the prior-year quarter as CVS continued executing its margin recovery plan.
CVS Health is beginning to see the results of actions taken at Aetna over the past two years. The company has strengthened its clinical programs, improved operations and maintained a disciplined approach to cost management and pricing. Those efforts have helped drive more than $2 billion in year-over-year AOI improvement so far this year.
The quarter’s results also included the impact of changes in the Individual Exchange risk adjustment position for the 2025 plan year and favorable prior-year development. These items contributed approximately 140 basis points to the MBR. Even excluding these items, CVS Health’s core performance came in ahead of expectations, driven largely by Medicare, owing to strong medical cost management and disciplined pricing. Medicaid and Commercial businesses performed in line with expectations.
Management now expects Health Care Benefits AOI of $5.03 billion to $5.37 billion for 2026, more than $1 billion above its previous guidance.
Key Developments Among CVS Health’s PeersThe Cigna Group (CI - Free Report) delivered total revenues of $71.7 billion and adjusted EPS of $7.78 in the second quarter of 2026, up 7% and 8.1%, respectively. Specialty and Care Services benefited from secular tailwinds, along with strength at Accredo and its broader specialty pharmacy services. Cigna Healthcare also delivered results ahead of expectations, supported by customer growth in the U.S. employer business, disciplined pricing and execution, including in the stop-loss business.
Walmart (WMT - Free Report) completed the acquisition of Vibe.co, a leading self-service streaming TV advertising platform, earlier this month. The addition will help the company’s U.S. commerce media business, Walmart Connect, bring to market new and distinct ways for advertisers to plan, buy and measure streaming TV advertising.
CVS’ Price Performance, Valuation and EstimatesOver the past year, CVS Health shares have risen 38.4% compared with the industry’s 12.2% growth.
Image Source: Zacks Investment Research
In terms of valuation, CVS shares are trading at a forward sales multiple of 0.29 over the past five years compared with its 0.52 industry average.
Image Source: Zacks Investment Research
Here’s how estimates for the company’s earnings have been shaping up.
Image Source: Zacks Investment Research
CVS currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Key Takeaways CVS raised 2026 adjusted EPS guidance to $7.90-$8.10 as earnings momentum improves.CVS raised Aetna's 2026 outlook to $5.03-$5.37 billion, more than $1 billion above earlier guidance.CVS faces elevated medical costs, reimbursement pressure and a Caremark 2027 earnings headwind. CVS Health (CVS - Free Report) is entering the second half of 2026 with stronger earnings momentum, higher cash generation and an improved Aetna profit outlook. Those gains strengthen the recovery case after a difficult period for the insurer.
The trade-off is that medical-cost pressure and changing pharmacy benefit manager economics remain unresolved. CVS trades below major valuation benchmarks, but its multiple is already above its own five-year median.
CVS Earnings Recovery Is Gaining TractionThe Zacks Consensus Estimate for 2026 earnings has increased 7.9% over the prior four weeks, while projected 2026 EPS growth stands at 16.6%. Current cash flow growth of 65.3% adds another positive signal.
Second-quarter results support that trend. Adjusted EPS increased 42.5% year over year to $2.58, while adjusted operating income rose 35.4% to $5.16 billion. CVS also raised 2026 adjusted EPS guidance to $7.90-$8.10.
Image Source: Zacks Investment Research
CVS Valuation Looks Low Versus Key BenchmarksCVS trades at 11.7X forward 12-month earnings, below the Zacks sub-industry's 16.2X and the S&P 500's 20.8X. The gap shows that investors still assign CVS a sizable discount despite improving earnings.
Image Source: Zacks Investment Research
The stock is less cheap against its own history. CVS' five-year median forward multiple is 10.3X, below the current level. Relative valuation is favorable, but the shares are not unusually inexpensive compared with their historical norm.
CVS Aetna Recovery Strengthens the Bull CaseHealth Care Benefits is the clearest operating reason for greater confidence. Adjusted operating income increased by more than $2 billion year over year in the first half of 2026 as pricing discipline and medical-cost management improved profitability.
CVS raised the segment's 2026 adjusted operating income outlook to $5.03-$5.37 billion, more than $1 billion above prior guidance. The medical benefit ratio improved to 87.4% in the second quarter from 89.9% a year earlier, showing measurable progress in the margin-recovery plan.
CVS PBM and Medical Risks Limit the UpsideThe recovery still faces pressure from elevated medical utilization and reimbursement changes. CVS continues to take a prudent view of second-half medical costs, while retail pharmacy and pharmacy services face reimbursement and client-pricing pressure.
Caremark adds uncertainty. Weaker 340B conditions are expected to create a 2027 earnings headwind, while management anticipates lower pharmacy benefit manager membership next year. Specialty pharmacy and generic opportunities may offset part of that pressure, but uneven earnings remain possible.
The Cigna Group (CI - Free Report) is relevant because its Evernorth Health Services business includes pharmacy benefit and related health-service operations. Cigna therefore offers another diversified model exposed to benefit-management economics.
UnitedHealth Group (UNH - Free Report) combines a large insurance franchise with health-services operations through Optum. It provides another useful reference point for investors assessing medical-cost and health-services trends across managed care.
CVS Signals Point to a Balanced SetupThe bottom line is that CVS has better earnings momentum and a favorable relative valuation, but execution risk remains. Aetna is improving, while medical utilization, reimbursement pressure and Caremark's 2027 reset argue for more evidence that the gains can persist.
CVS currently carries a Zacks Rank #3 (Hold), which fits that mixed setup rather than signaling an aggressive entry point. The stock also has a Value Score of A, Growth Score of A, Momentum Score of A and VGM Score of A. Those scores indicate favorable characteristics across several styles, but they are designed to complement the Zacks Rank.
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Fielder Capital Group LLC acquired a new position in CVS Health Corporation (NYSE: CVS) during the undefined quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The fund acquired 5,972 shares of the pharmacy operator's stock, valued at approximately $618,000. Other institutional investors also recently bought
Key Takeaways CVS raised 2026 adjusted EPS guidance to $7.90-$8.10 after broad-based Q2 profit gains.CVS Aetna's adjusted operating income surged 85.5%, with its medical benefit ratio improving to 87.4%.CVS' higher cash flow supports leverage improvement, but medical costs and PBM changes remain key risks.
CVS Health (CVS - Free Report) raised its 2026 earnings and cash-flow outlook after a second quarter marked by stronger profitability across all operating segments. The improvement gives the company more room to rebuild margins after a difficult period for its Aetna insurance business.
The recovery is gaining traction, but the path is not risk-free. Medical-cost pressure, reimbursement changes and a changing pharmacy benefit manager environment could still test the durability of the higher outlook.
CVS Q2 Results Show Broad-Based ImprovementSecond-quarter adjusted earnings rose 42.5% year over year to $2.58 per share, while revenues increased 7.3% to $106.10 billion. Adjusted operating income advanced 35.4% to $5.16 billion, reflecting gains across all operating segments.
Health Care Benefits delivered the largest earnings improvement, while Health Services and Pharmacy & Consumer Wellness also posted higher adjusted operating income. That broader contribution matters because the recovery is not resting on a single business line.
CVS Raises Its 2026 Earnings and Cash OutlookCVS lifted its 2026 adjusted EPS guidance to $7.90-$8.10 from $7.30-$7.50. The company now expects consolidated revenues of at least $414 billion and adjusted operating income of $16.58-$16.92 billion.
Here’s where consensus estimates for the company’s revenues and earnings currently stand.
Image Source: Zacks Investment Research
Expected cash flow from operations also rose to at least $11.5 billion from at least $9.5 billion. The stronger cash outlook supports further leverage improvement after the company ended the second quarter with a leverage ratio of about 3.5 times.
CVS Aetna Turnaround Drives the RecoveryAetna's Health Care Benefits business is becoming a larger earnings contributor as pricing discipline and medical-cost management improve results. Second-quarter adjusted operating income reached $2.43 billion, up 85.5% year over year, while the medical benefit ratio improved to 87.4% from 89.9%.
CVS raised the segment's 2026 adjusted operating income outlook to $5.03-$5.37 billion, more than $1 billion above its prior guidance. Management expects the full-year medical benefit ratio to be about 89.75%, plus or minus 25 basis points, while continuing to take a prudent view of second-half medical costs.
CVS Risks Could Test the Raised GuidanceThe higher outlook does not remove execution risk. CVS expects the Health Care Benefits medical benefit ratio to rise materially through the second half, while reimbursement pressure continues in retail pharmacy and pharmacy services. Weakness in the 340B business is also expected to create a 2027 headwind.
Caremark faces another transition as regulatory changes and the shift toward net-cost pricing reshape pharmacy benefit manager economics. Management also expects lower Caremark membership in 2027 as it takes a more disciplined approach to contract renewals and some health-plan clients exit products or markets.
Peer results show that managed-care and pharmacy-services operators are also adjusting to changing cost and contracting conditions. UnitedHealth Group (UNH - Free Report) raised its 2026 adjusted earnings outlook after its second quarter, while The Cigna Group (CI - Free Report) increased its 2026 adjusted income outlook after reporting year-over-year revenue and earnings growth.
CVS Signals Support a Measured Recovery ViewCVS has clearer operating momentum than it did a year ago, led by Aetna's margin recovery, stronger pharmacy execution and higher cash generation. Still, the second-half medical-cost trajectory and 2027 pharmacy-services headwinds argue for a measured view rather than assuming the recovery is complete.
The stock currently carries a Zacks Rank #3 (Hold). CVS also has a Value Score of A, Growth Score of A, Momentum Score of A and VGM Score of A. Those favorable Style Scores point to attractive characteristics across valuation, growth and momentum, but the Zacks Rank keeps the near-term signal balanced as investors assess whether the higher guidance can translate into sustained.
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Key Takeaways CVS is building Health100 and Haio to simplify health care and improve consumer engagement.Technology has helped CVS approve over 95% of eligible prior authorizations within 24 hours.CVS' AI claims tool aims to cut processing time by more than 20% on hundreds of millions of claims. CVS Health (CVS - Free Report) sees its technology investments as an inflection point as it works to become a more consumer-based health care technology company. Last year, the company committed to invest $20 billion over the next decade in emerging technologies to simplify the health care experience and improve customer engagement. The investment includes developing an open platform that can provide seamless access to payers, providers, pharmacy benefit managers (PBMs), pharmacies and digital health tools.
CVS recently began the targeted launch of its Health100 platform, including Haio, an artificial intelligence (AI)-powered assistant designed to simplify the consumer experience and help people better engage in their care journey. The company expects to expand access later this year following encouraging early feedback.
CVS is also using technology to simplify the health care experience for providers, focusing on some of the highest priorities, such as prior authorizations, claims processing and access to real-time patient information. Aetna has the fewest medical services subject to prior authorization in the industry. CVS’ focus on embedding technology within each of its businesses has enabled it to approve more than 95% of the eligible prior authorizations within 24 hours, with more than 80% being approved in real time.
The company also launched an AI-enabled claims assist manager, which is expected to reduce processing time by more than 20% and accelerate payments for providers on hundreds of millions of claims annually. CVS is also scaling its Aetna clinical collaboration program, which brings Aetna nurses together with hospital staff to support Medicare Advantage members during care transitions.
Technology infrastructure changes are helping modernize platforms and accelerate data sharing and connectivity with providers and payer partners. CVS Specialty’s focus on technology, automation and AI has helped it maintain adherence above 90% compared with the 80% industry standard.
Updates From CVS Health’s PeersCardinal Health (CAH - Free Report) generated $63.7 billion in fiscal fourth-quarter 2026 revenues, up 6% year over year. Growth was led by strong demand in the company’s Pharmaceutical and Specialty Solutions segment with contributions from three growth businesses within Other - at-Home Solutions, Nuclear and Precision Health Solutions and OptiFreight Logistics. Adjusted earnings per share (EPS) increased 40% to $2.91, reflecting the jump in non-GAAP earnings, including the recognition of a one-time net operating profit impact of International Emergency Economic Powers Act tariff refunds of $100 million in CAH’s Global Medical Products and Distribution segment, a lower effective tax rate and a lower share count.
UnitedHealth Group’s (UNH - Free Report) second-quarter 2026 revenues of $112 billion were largely consistent with the prior year. Operating earnings of $8 billion grew 55% year over year, reflecting product and portfolio actions taken over the past 12 months, along with targeted management disciplines. UNH attributed the lower-than-expected medical cost trends in Medicare so far this year largely to its initiatives, including benefit design, care management models and network curation.
CVS’ Price Performance, Valuation and EstimatesYear to date, CVS Health shares have risen 19.6% compared with the industry’s 1.2% growth.
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CVS shares are trading at a forward five-year price-to-sales ratio of 0.29, lower than the 0.52 industry average. The stock has a Value Score of A.
Image Source: Zacks Investment Research
The consensus estimate for the company’s 2026 and 2027 earnings has been showing a bullish trend.
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CVS currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Key opportunities include: managing GLP-1s, encouraging biosimilar substitution and employing technology to simplify and personalize the member experience
, /PRNewswire/ -- CVS Caremark, part of CVS Health® (NYSE: CVS), today announced the findings of a survey conducted in partnership with Employee Benefit News that reveals why employers are increasingly relying on their pharmacy benefit manager (PBM) partners to use their expertise, scale and purchasing power to help them manage their top concern: battling rising drug prices and maintaining access to quality care.
This year's The State of Pharmacy Management Survey findings show HR decision makers and executive leaders are focused on navigating the rising price of prescription drugs, managing access to expensive treatments such as GLP-1s, and encouraging the use of more cost-effective biosimilars.
Key Findings
91% of employers are concerned about the high prices of medication for employees 88% of employers see PBMs as especially well positioned to reduce prescription drug costs for their businesses 64% say PBMs have the greatest opportunity to improve access to affordable specialty medications "This data reveals the urgency behind employers' need for PBM partners who can address cost, first and foremost," said Ed DeVaney, President, CVS Caremark. "There's a clear opportunity to help employers navigate the evolving pharmacy benefits landscape while driving sustainable benefits for clients and members."
Opportunity for employers to encourage greater use of biosimilars
The survey findings also illustrate that biosimilars represent one of the largest untapped opportunities for employers to reduce drug costs in the U.S. health care market, offering clinically equivalent therapies to improve affordability and enhance access without compromising safety or efficacy.
Today, only about half of employers (49%) are encouraging biosimilar substitution while another 40% are actively considering or exploring it. With just 12% of employers reporting that they are educating employees about the cost savings potential, this study illustrates a significant opportunity for employers to do more to both create better awareness and understanding of the benefits of biosimilars and help their members access them.
CVS Caremark has been an industry leader in promoting biosimilar adoption. Since April 2024, biosimilar formulary strategy has helped CVS Caremark clients and members realize more than $3.3 billion in gross savings related to Humira® (adalimumab), and the company is committed to expanding the use of low-cost biosimilars across multiple therapeutic categories.
On July 1, 2026, CVS Caremark transitioned from Stelara® (ustekinumab) on its most common commercial template formularies to prefer lower-cost, interchangeable biosimilar alternatives — Pyzchiva® and Yesintek®. Most members will pay $0 out-of-pocket for their therapy.
Employers are planning for emerging areas of pharmacy spend, including GLP-1 weight management
Weight management has moved into the benefits mainstream, becoming a core component of modern benefits strategy. Seventy-seven percent of employers say the high cost of GLP-1 coverage is a concern — with 80% having either already limited GLP-1 coverage for weight loss or considering limits.
CVS Caremark is focused on improving affordability and access to GLP-1s by increasing access to GLP-1 weight management medications this year with expanded coverage options. In addition to negotiating lower prices with drug manufacturers, CVS Caremark works with clients to leverage the right GLP-1 management strategies for each employee population, including utilization management, personalized clinical and nutrition support and more.
The lifestyle-first approach of the CVS Weight Management™ program has driven sustainable weight loss results for members and cost savings for plan sponsors. Clients who adopted the program spent up to 26% less on GLP-1 medications for weight-loss compared to those who did not, and members who were previously on anti-obesity medication nearly doubled their pre-program weight loss while working with program clinicians on diet and lifestyle.
Digital innovation is central to pharmacy benefits
As AI and digital enablement continue to transform the health care experience, employers are looking for pharmacy benefits partners who can leverage digital tools to make support more accessible, personalized and navigable for plan members, with 88% saying that digital tools and innovation as part of the health care experience are "here to stay."
CVS Caremark invests over $770 million in technology each year dedicated to member innovation, combining human touch with streamlined digital processes so members can receive the treatment they need quickly. As a founding partner of the Coalition for Health AI (CHAI), CVS Caremark is also helping lead the way in safe and ethical use of AI in health care, all in support of improved health outcomes and a streamlined experience for members, clients and providers.
Employers see pharmacy benefit costs as harder to control than other benefits
Only 30% of employers said they have significant influence over pharmacy costs, compared to 73% who said they have significant influence over the overall cost of maintaining a competitive benefits package. At the same time, employers are looking for PBMs to help manage pharmacy spending while maintaining access to affordable treatment options. Of those surveyed, 91% say they are very concerned about high medication costs for employees.
CVS Caremark helps employers control drug costs and make medications more accessible by working with drug manufacturers to negotiate affordable drug prices for clients and members. Through the industry-leading pricing model, TrueCost™, CVS Caremark allows clients to see true drug costs through acquisition-cost-based pricing and drug-level rebate values, enabling more pricing transparency, predictability and sustainability for plan administrators and members and improving affordability for high-quality treatment.
View The State of Pharmacy Management report.
About CVS Health
CVS Health is a leading health solutions company simplifying health care one person, one family and one community at a time. As of June 30, 2026, the Company had approximately 9,000 retail pharmacy locations, more than 1,000 walk-in and primary care medical clinics and a leading pharmacy benefits manager with approximately 87 million plan members. The Company also serves an estimated 37 million people through a broad range of health insurance products and related services. The Company's integrated model uses personalized, technology driven services to connect people to simply better health, increasing access to quality care, delivering better outcomes, and lowering overall costs.
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E. Ohman J or Asset Management AB lowered its position in CVS Health Corporation (NYSE: CVS) by 30.2% in the undefined quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 30,455 shares of the pharmacy operator's stock after selling
Investors often weigh high-margin drug developers against massive healthcare service providers when building a portfolio. Choosing between AbbVie (ABBV +0.85%) and CVS Health (CVS -2.27%) requires balancing biotech growth against retail stability.
AbbVie focuses on discovering and commercializing advanced therapies, while CVS Health operates an integrated model spanning insurance, pharmacies, and primary care clinics. Both companies play critical roles in the healthcare sector but offer very different risk and reward profiles for retail investors seeking long-term exposure in the current market.
The case for AbbVieAbbVie operates as a global biopharmaceutical giant among healthcare stocks, selling advanced therapies to wholesale distributors and government agencies. Its primary customers include McKesson, Cardinal Health, and Cencora, which represent nearly all U.S. sales. Customer concentration like this adds a layer of risk to the business. The company recently moved to strengthen its pipeline by announcing a $10.9 billion acquisition of Apogee Therapeutics in June 2026.
In FY 2025, revenue reached nearly $61.2 billion, which was an increase of roughly 8.6% compared to the prior year. Net income for the period was close to $4.2 billion, reflecting a net margin of approximately 6.9%. While revenue grew, the net margin saw a slight decline from the 7.6% reported in the previous fiscal year. Net margin is a simple way to measure how much of every dollar in sales a company keeps as profit.
As of its December 2025 balance sheet, the debt-to-equity ratio was -21.1x. This negative figure indicates that total liabilities exceed shareholder equity. The current ratio, which measures a company's ability to pay short-term debts with short-term assets, was close to 0.7x. Free cash flow for FY 2025 was nearly $17.8 billion. Free cash flow is the cash left over after a company pays for its operations and equipment.
The case for CVS HealthCVS Health serves approximately 37 million medical members through employer groups and government plans like Medicare Advantage. The company manages 1.9 billion prescriptions annually through its Health Services segment and operates a network of roughly 63,000 pharmacies. Its primary care centers, including Oak Street Health, work with over 25 different payors to provide value-based care. This vertical integration allows the business to capture revenue at multiple points in the patient journey.
In FY 2025, revenue reached approximately $402.1 billion, representing growth of nearly 7.8% over the prior year. Net income for the period was close to $1.8 billion, resulting in a net margin of roughly 0.4%. This net margin is significantly lower than the 1.2% recorded in FY 2024. Net margin represents the percentage of revenue remaining after all expenses and taxes are paid, indicating how much profit is generated from total sales.
As of the December 2025 balance sheet, the debt-to-equity ratio was approximately 1.2x. This ratio compares a company's total debt to the value of its shareholder equity to show how much leverage it uses. The current ratio was nearly 0.8x, suggesting the company has $0.80 in short-term assets for every $1.00 in short-term debt. Free cash flow for FY 2025 was roughly $7.8 billion, which represents cash generated after accounting for capital investments.
Risk profile comparisonAbbVie faces significant risks from patent expirations and competition from biosimilars, particularly for its former blockbuster drug Humira. The business also deals with revenue concentration in its newer products, Skyrizi and Rinvoq, as competitors like Pfizer develop competing immunology treatments. Furthermore, drug pricing legislation and the Inflation Reduction Act have led to government price setting for several key products. Complex global regulations and a 2026 lawsuit regarding drug discount programs add further uncertainty.
CVS Health operates in highly competitive industries where price compression often affects its pharmacy and insurance segments. The company faces pressure from Walgreens Boots Alliance in the retail space and UnitedHealth Group in the insurance market. Heavy exposure to government programs makes it vulnerable to policy changes and audits by the Centers for Medicare and Medicaid Services. Legal challenges remain a factor, including a $440 million False Claims Act settlement in 2026 regarding its Omnicare subsidiary.
Valuation comparisonCVS Health appears to be the more conservative value play based on its lower multiples, while AbbVie demands a premium for its specialized pharmaceutical portfolio.
MetricAbbVieCVS HealthForward P/E17.5x12.5xP/S ratio7.1x0.3xValuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.
I'd go with AbbVie, although CVS Health deserves credit for a genuine turnaround in progress. The company beat estimates by a wide margin in its most recent quarter and raised its full-year outlook for the second time this year. Its troubled Aetna insurance business is finally showing signs of stabilization. For investors who want broad healthcare exposure at a modest valuation, CVS has become a more interesting story than it has been in a while.
But AbbVie is running a more focused operation with a more exciting growth trajectory. Skyrizi and Rinvoq are each growing at an extraordinary pace, and the Humira biosimilar headwind is largely behind the company now. The company also has a neuroscience portfolio that is accelerating in ways that most investors have underappreciated. AbbVie raised its full-year outlook for the second time this year and pays one of the more attractive dividends in the healthcare sector.
CVS is a turnaround story that appears to be working, but AbbVie is a growth story that is already delivering. For a long-term investor, that distinction makes AbbVie the easier stock to own right now.
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What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.
Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.
VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.
How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
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You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.
The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: CVS Health (CVS - Free Report) Headquartered in Woonsocket, RI, CVS Health Corporation (formerly known as CVS Caremark Corporation) is a health solutions company with integrated offerings across the entire spectrum of pharmacy care. On Sep 3, 2014, CVS Caremark Corporation announced a change of its corporate name to CVS Health to reflect its broader healthcare commitment. In 2018, CVS Health acquired insurance giant Aetna for $70-billion.
CVS is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
Additionally, the company could be a top pick for growth investors. CVS has a Growth Style Score of A, forecasting year-over-year earnings growth of 15.9% for the current fiscal year.
Eight analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.38 to $7.82 per share. CVS also boasts an average earnings surprise of +20.5%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, CVS should be on investors' short list.
CVS Health Corporation's strong Q2 results delivered revenue and earnings beats while management raised operating cash flow guidance to $11.5 billion. Aetna turnaround and improved medical benefit ratios boosted first half cash generation, helping drive recent stock gains. Management anticipates higher second half medical costs alongside 2027 headwinds from 340B pricing and pharmacy drug mix shifts.
The ETF market saw a massive surge into core index heavyweights this past week, as investors poured billions into broad U.S. equities and mega-cap tech leadership. However, this aggressive accumulation was paired with deliberate defensive positioning in ultra-short Treasuries, spot gold, and healthcare sector exposure. This week’s inflows highlight a market leaning into U.S. equity momentum, while ensuring its safety nets remain firmly in place.
Key Takeaways Investors aggressively deployed capital across the U.S. equity market, pairing tech leadership in funds like the Invesco QQQ Trust Series I (QQQ) with massive inflows into core benchmarks like the Vanguard S&P 500 ETF (VOO). Alongside equity momentum, investors funneled capital into defensive allocations such as short-duration Treasuries, spot gold, and healthcare equities. Allocators looked beyond domestic borders for focused growth, deploying $757 million into the iShares MSCI South Korea ETF (EWY) to gain tactical exposure to global semiconductor leaders like Samsung and SK Hynix.
Mega-Cap Tech and Blue-Chip Momentum At the forefront of this week’s inflows were two distinct drivers of domestic market strength, mega-cap tech and large-cap blue-chips. The Invesco QQQ Trust Series I (QQQ) led this week’s inflows gaining $7.85 billion in new assets as of August 6. Tracking the Nasdaq-100 Index, QQQ offers market-cap weighted exposure to the 100 largest non-financial companies listed on the Nasdaq. The strong inflows into QQQ underscores continued investor appetite for mega-cap tech exposure.
The State Street SPDR Dow Jones Industrial Average ETF Trust (DIA) saw inflows of $1.90 billion over the course of the week, as earnings growth continued to broaden across U.S. markets. Tracking the Dow Jones Industrial Average Index, DIA provides concentrated exposure to 30 U.S. large-cap blue-chip stocks chosen by representatives from S&P Dow Jones Indices and The Wall Street Journal.
Investing in the Broad U.S. Market Capital continued to pour into broad-market index funds this week, as investors looked to capture broader U.S. market growth. Leading this charge were S&P 500 heavyweights, with the Vanguard S&P 500 ETF (VOO) gathering $7.34 billion and the iShares Core S&P 500 ETF (IVV) pulling in $4.34 billion this week. Further expanding this core equity accumulation, the State Street SPDR Portfolio S&P 500 ETF (SPYM) added $1.18 billion in new assets.
Covering the entire investable U.S. market, the Vanguard Morningstar Total Stock Market ETF (VTI) received $1.80 billion in inflows this week. Tracking the CRSP US Total Market Index, VTI offers market-cap weighted exposure to roughly 3,500 holdings across various sectors and market capitalizations. By providing exposure to mid- and small-cap companies, VTI allows investors to capture broader U.S. market growth beyond traditional mega-cap tech.
Prioritizing Safety and Stability Alongside allocations to large-cap equities was a distinct turn toward defensive positioning. The iShares 0-3 Month Treasury Bond ETF (SGOV) saw $1.23 billion in new assets this week. SGOV attracted strong inflows as investors prioritized capital preservation and looked to manage ongoing macroeconomic uncertainties.
The SPDR Gold Shares (GLD) gained $1.01 billion in new assets over the course of the week. This was driven by geopolitical developments, a sliding dollar, and easing Federal Reserve interest rate hike expectations. Spot gold is trading above $4,400 an ounce as of early afternoon trading on August 7, as cooling inflation pressures lower the opportunity cost of holding non-yielding assets.
Rounding out the week’s defensive allocations was a rotation into healthcare equities. The State Street Health Care Select Sector SPDR ETF (XLV) captured $748 million in new assets this week. These gains were driven in part by strong second-quarter earnings from major healthcare providers such as Eli Lilly (LLY) and CVS Health (CVS). At the same time, investors sought equity exposure while leaning on the steady dividends and inelastic demand typical of the healthcare industry.
Betting on South Korean Semiconductors Stepping outside U.S. markets, investors also looked overseas for targeted, international growth opportunities. The iShares MSCI South Korea ETF (EWY) tracking the MSCI Korea 25-50 Index captured $757 million in fresh inflows. Investors used the single-country fund as a tactical play to gain exposure to global technology and semiconductor demand. Major South Korean semiconductor producers such as Samsung Electronics (005930) and SK Hynix (SKHY) collectively account for approximately 43% of EWY’s total assets.
For more news, information, and analysis, visit the Equity ETF Content Hub.
ToplineAmazon on Thursday announced its pharmacy would distribute popular GLP-1 weight-loss drugs to eligible Medicare patients for $50 a month—a sweeping shift that has slashed the cost of these medications by as much as 97% from their peak price, which had prevented access for millions of Americans.
Amazon’s pharmacy now offers steep discounts for weight-loss drugs, down from as much as $1,500.
dpa/picture alliance via Getty Images
Key FactsAmazon Pharmacy will now dispense Wegovy, Zepbound KwikPen and Foundayo—Eli Lilly’s new daily weight-loss pill—to qualifying Medicare patients for $50 each month under the federal Medicare GLP-1 Bridge Program, which runs through Dec. 31, 2027.
That marks a steep price reduction for the medications, which first cost between $1,200 and $1,500 a month.
The price reductions will save customers about $300 million, Amazon said.
Amazon said it would automate the entire enrollment process — including eligibility verification, prior authorization, and billing—after a prescription is submitted electronically, and will offer same-day delivery across more than 3,100 U.S. cities without a Prime membership.
CVS Health on Wednesday announced an overhaul to its GLP-1 offerings, cutting its digital weight-loss appointments to $29—which the firm claimed to be the cheapest on the market—and partnering with Eli Lilly to offer transparent pricing for Zepbound and Foundayo.
Since April, Walmart has announced plans to expand GLP-1 access through its pharmacies and said its pharmacists would be able to support newly eligible Medicare beneficiaries.
big numberMore than 66 million. That’s how many people in the U.S. get their health coverage from Medicare, according to the insurance program. About 72% of adults age 20 and older are overweight or obese, according to Centers for Disease Control and Prevention data as of August 2023.
key backgroundThe Medicare GLP-1 Bridge Program, which launched July 1, covers weight-loss drug costs for patients with obesity. The Centers for Medicare and Medicaid Services absorbs the financial risks for the first 18 months rather than passing it on to private insurers. Expanding access to weight-loss drugs, like Wegovy, Zepbound and Foundayo, comes as Eli Lilly and Novo Nordisk still charge between $199 and $499 a month for patients outside the Medicare program. Amazon has pushed itself into the GLP-1 market, announcing in April a GLP-1 management program that featured insured pricing starting at $25 a month.
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Key Takeaways CVS raised 2026 adjusted EPS guidance to $7.9-$8.1 as Aetna's recovery lifted expectations.Caremark retention is below historical levels, with 340B pressure expected to weigh on 2027 results.AI delivered over $1 billion in savings and redirected 1 million pharmacist hours to patient care. CVS Health Corporation (CVS - Free Report) used its Q2 2026 earnings call to pair stronger 2026 expectations with an early warning about pharmacy-services pressure next year. Management emphasized Aetna’s recovery and retail execution.
Adjusted EPS of $2.58 topped the Zacks Consensus Estimate of $1.87, while revenues of $106.1 billion exceeded the $100.18 billion consensus estimate.
CVS Raises 2026 Outlook on Aetna RecoveryChairman and chief executive officer David Joyner said every operating segment grew earnings and exceeded internal expectations. CVS raised adjusted earnings guidance to $7.9-$8.1.
Chief financial officer Brian Newman increased the revenue outlook to at least $414 billion and operating cash flow guidance to at least $11.5 billion. Enterprise adjusted operating income is now projected at $16.58-$16.92 billion.
Health Care Benefits drove the revision. Its adjusted operating income outlook rose by more than $1 billion to $5.03-$5.37 billion, while the full-year medical benefit ratio is expected at 89.75%, plus or minus 25 basis points.
CVS Health Flags 2027 PBM PressureNewman pulled forward preliminary 2027 commentary, calling adjusted earnings of at least $8.44 reasonable. That represents about 13% growth from a $7.46 baseline and assumes only dilution-offsetting repurchases.
A Leerink analyst pressed management on 340B and Caremark’s selling season. Executive vice president and group president Prem Shah said retention is tracking below historical levels but closer to industry norms, while customer market exits will also reduce membership.
A Barclays analyst asked what was driving 340B pressure. Shah cited manufacturer restrictions on covered entities and large specialty drugs becoming generic. Broader Caremark performance offset the pressure in the quarter, but management expects a headwind in 2027.
CVS Defends Medicare and Retail DurabilityHealth Care Benefits produced $2.426 billion of adjusted operating income and an 87.4% medical benefit ratio. About $500 million, or 140 basis points, came from risk-adjustment changes and favorable prior-year development, though Newman said core performance still exceeded expectations.
A JPMorgan analyst asked about 2027 Medicare bids. Aetna president Steven Nelson cited lower-than-expected membership contraction, strong star scores and disciplined medical-cost management. Group Medicare Advantage has renewed about 75% of its book.
A Wolfe Research analyst questioned retail durability as Rite Aid-related prescription gains normalize. Shah said CVS CostVantage is helping move the business toward a more consistent margin profile, while improved service should support above-market prescription growth across 9,000 stores.
CVS Health Expands GLP-1 Access StrategyJoyner framed GLP-1s as an enterprise opportunity spanning funded benefits through Aetna and Caremark and cash-pay access through CVS Pharmacy and MinuteClinic.
Shah acknowledged CVS was slightly slow entering the direct-to-patient market but said the company has repositioned the offering. MinuteClinic weight-management visits are moving from $49 to $29, while cash-pay therapy access starts at $149 for eligible patients.
Shah said the strategy contributed to Pharmacy and Consumer Wellness strength and should support the second half. Management also highlighted expanded formularies, Medicare Bridge and patient support from nearly 30,000 pharmacists.
CVS Puts AI Behind Savings and GrowthA Morgan Stanley analyst asked about technology spending and returns. Joyner said CVS is moving toward a consumer-based health care technology model while keeping human interaction and privacy central to deployment.
Nelson said Aetna’s claims platform cuts processing time by more than 20%. AI reduced advocate case preparation from 90 minutes to two minutes, while 83% of prior authorizations are approved in real time and more than 95% within 24 hours.
Shah said conversational AI removed hundreds of millions of pharmacy calls and redirected 1 million pharmacist hours toward patient care. Newman said technology and AI contributed to more than $1 billion of operating-expense savings.
CVS Health Maintains a Disciplined PostureManagement’s tone was confident on 2026 and candid about 2027 trade-offs. Executives emphasized pricing, contracting discipline and measured capital deployment rather than pursuing membership without adequate returns.
The stated path combines Aetna margin recovery, retail execution, specialty pharmacy growth and technology investment while preparing for 340B pressure and Caremark membership declines.
Zacks Signals Favor Value and MomentumCVS carries a Zacks Rank #2 (Buy), with a Value Score of A, Momentum Score of A, Growth Score of B and a VGM Score of A. Zacks methodology views Rank #1 (Strong Buy) and 2 stocks with an A or B Style Score as having a more favorable near-term performance profile.
You can see the complete list of today’s Zacks #1 Rank stocks here.
The A VGM Score reflects strength across the combined style factors. The Zacks Rank can change as earnings estimates are revised following the reported results.
UnitedHealth Just Gave Wall Street a Clearer Turnaround SignalCVS Health NYSE: CVS reported second-quarter results that exceeded its expectations, citing earnings growth across all operating segments and raising its full-year outlook for adjusted earnings per share and operating cash flow.
Chair and Chief Executive Officer David Joyner said the company generated adjusted operating income of $5.2 billion and adjusted earnings per share of $2.58 during the quarter. Revenue exceeded $106 billion, up more than 7% from the prior-year quarter, while adjusted operating income increased 35% and adjusted EPS rose more than 40%, Chief Financial Officer Brian Newman said.
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Eli Lilly Wins Back CVS Health, Reverting Novo's AdvantageThe company raised its full-year 2026 adjusted EPS guidance by $0.60 to a range of $7.90 to $8.10. CVS also lifted its operating cash flow expectation by $2 billion to at least $11.5 billion, reflecting its updated earnings outlook and working-capital improvements. The company now expects at least $414 billion in full-year revenue and enterprise adjusted operating income of $16.58 billion to $16.92 billion.
Health Benefits results supported by Medicare performance CVS’ Health Care Benefits segment, which includes Aetna, generated more than $37 billion in quarterly revenue, up over 3% from the prior year. Adjusted operating income was about $2.4 billion, while the medical benefit ratio was 87.4%.
3 Healthcare Stocks Set to Benefit From the One Big Beautiful BillNewman said results reflected continued margin recovery as well as approximately $500 million, or 140 basis points, of benefit from changes in the company’s individual exchange risk-adjustment position for the 2025 plan year and favorable prior-year development. Excluding those items, CVS said underlying performance still exceeded expectations, led by its Medicare business.
Medical membership totaled roughly 26 million at quarter-end, flat sequentially and down approximately 700,000 from the prior year. The year-over-year decline primarily reflected CVS’ exit from the individual exchange business, partly offset by growth in commercial fee-based membership.
Steve Nelson, executive vice president of CVS Health and president of Aetna, said the company’s Medicare business has benefited from changes to its geographic footprint, product mix, annual enrollment execution, pricing discipline, favorable member mix and medical-cost management. Nelson said Aetna expects to continue progressing toward target margins in 2027.
For the full year, CVS now expects Health Care Benefits adjusted operating income of $5.03 billion to $5.37 billion, an increase of more than $1 billion from its earlier forecast. It expects a full-year medical benefit ratio of 89.75%, plus or minus 25 basis points.
Pharmacy services and retail businesses post growth The Health Services segment produced nearly $52 billion in revenue, up more than 11%, and adjusted operating income of more than $1.7 billion, up 10%. Revenue growth was driven by pharmacy drug mix and brand inflation, partly offset by pharmacy client price improvements.
Newman said the segment benefited from improved purchasing economics, pharmacy mix and modest improvement in the health care delivery business. CVS also cited higher specialty generic penetration rates. However, the company experienced pressure in its 340B business, which it said remains subject to a changing environment. CVS also said some value originally expected in the second half was pulled forward into the second quarter.
Prem Shah, executive vice president and group president of CVS Health, said restrictions imposed by pharmaceutical manufacturers on covered entities contributed to the 340B pressure. The company expects 340B to become a headwind in 2027, although management said it remains confident in its 2026 Health Services outlook.
CVS expects Caremark membership to decline next year, citing a more disciplined approach to contract underwriting and renewals, as well as product actions and market exits by some health-plan customers. Shah said the company expects its specialty pharmacy business, including generic opportunities, to partially offset those pressures.
The Pharmacy and Consumer Wellness segment reported nearly $34 billion in revenue and nearly $1.5 billion in adjusted operating income, with operating income rising more than 10% year over year. Same-store pharmacy sales increased approximately 3%, supported by a 7% increase in same-store prescription volume. Same-store front-store sales improved 100 basis points from the prior-year period.
CVS raised its full-year Pharmacy and Consumer Wellness adjusted operating income expectation by $220 million to at least $6.4 billion. Newman said results were supported by core pharmacy strength and contributions from the Rite Aid transaction completed last year.
GLP-1 access and technology investments remain strategic priorities Joyner highlighted CVS’ efforts to serve patients using GLP-1 therapies for weight loss through both benefit-plan and cash-pay channels. He said MinuteClinic’s virtual weight-management offering connects eligible patients with licensed clinicians for $29, while eligible patients may obtain GLP-1 therapies for as little as $149 through cash-pay options.
CVS plans to expand a partnership with Eli Lilly later this year, allowing eligible Zepbound and Mounjaro patients to access cash-pay pricing for same-day pickup through the CVS Health app or stores. The company also has an existing relationship with Novo Nordisk to dispense oral and injectable Wegovy.
Management also emphasized investments in artificial intelligence and technology. Joyner said CVS has committed to invest more than $20 billion in technology efforts over the next decade. The company said its AI-enabled Claims Assist Manager is expected to reduce claims-processing time by more than 20% and accelerate payment on hundreds of millions of claims annually.
Newman said CVS has generated more than $1 billion in operating-expense savings over the last several years through technology efficiencies and AI. He said ongoing investments are incorporated into the company’s updated 2026 outlook and its preliminary expectations for 2027.
Early view of 2027 CVS said it remains confident in its target of mid-teens adjusted EPS compound annual growth from 2025 through 2028. While it will provide formal 2027 guidance later, Newman said adjusted EPS of at least $8.44 appears reasonable based on current conditions. That would represent approximately 13% growth from an adjusted $7.46 baseline, which excludes prior-year development and prior-year items related to the individual exchange business CVS has exited.
The company ended the quarter with approximately $2.7 billion of cash at the parent and unrestricted subsidiaries, a leverage ratio of about 3.5 times, and year-to-date operating cash flow of approximately $10.6 billion. CVS returned more than $1.7 billion to shareholders through dividends during the first half and said its outlook does not assume share repurchases this year.
About CVS Health (NYSE:CVS)CVS Health Corporation is a diversified healthcare company that operates a large network of retail pharmacies, pharmacy benefit management services and health care solutions. Headquartered in Woonsocket, Rhode Island, the company traces its roots to the early 1960s and has grown into an integrated provider of prescription drugs, over‑the‑counter products, clinical services and health insurance offerings. Its operating model combines retail pharmacy locations and in‑store clinics with broader pharmacy and health plan capabilities.
Key business activities include CVS Pharmacy retail operations, MinuteClinic walk‑in medical clinics and HealthHUB locations that offer expanded clinical services.
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CVS Health (CVS), a healthcare giant spanning insurance, pharmacy-benefit management and retail pharmacies, delivered another strong quarter on Wednesday, but W
Revenue: Over $106 billion in Q2 2026, an increase of over 7% year-over-year.Adjusted Operating Income: Approximately $5.2 billion, up 35% from the prior year q
CVS Health Corp (NYSE:CVS) reported second-quarter revenue and profit that beat Wall Street estimates on Wednesday, and raised its full-year adjusted earnings guidance, though cautious guidance pressured shares.
Revenue rose 7.3% year-over-year to $106.1 billion, above analyst estimates of $100.11 billion. Adjusted earnings per share came in at $2.58, up 43% from a year earlier and well ahead of the $1.85 consensus estimate.
Operating income nearly doubled to $4.7 billion, compared with estimates of $3.94 billion, while net income reached $3 billion versus expectations of $2.36 billion.
The company raised its full-year adjusted EPS guidance to a range of $7.90 to $8.10, up from a prior estimate of $7.45. CVS also lifted its forecast for cash flow from operations to at least $11.5 billion, up from a previous outlook of at least $9.5 billion.
By segment, Health Care Benefits revenue rose 3.5% to $37.5 billion, Health Services revenue climbed 11.5% to $51.8 billion, and Pharmacy & Consumer Wellness revenue was flat at $33.8 billion.
On the earnings call, the company said it is "maintaining a cautious view for the remainder of the year in light of continued elevated cost trends and the potential for macro headwinds."
Shares of CVS Health were down 5.7% in Wednesday morning trading.
First Phosphate Corp. (CSE:PHOS, OTCQX:FRSPF, FRA:KD0, OTC:FPHOY) announced that it has finalized agreements for $4.84 million in non-repayable funding from the Government of Canada through Natural Resources Canada’s First and Last Mile Fund to support infrastructure development for its Bégin-Lamarche phosphate deposit in Quebec.
The funding includes approximately $3.07 million for a study focused on clean energy infrastructure, including the site selection, connection corridors, feasibility work and design of a 161-kilovolt transmission line and substations in the Saguenay-Lac-Saint-Jean region. The project will also include technical, cost, environmental and consultation work.
A further $1.77 million will support preparatory work for a new access road and studies to identify options for upgrading bypass roads connecting the proposed mine with regional infrastructure, including rail links and the Port of Saguenay.
The agreements build on $16.7 million in funding made available by NRCan in March 2026 through the Global Partnerships Initiative for development of the Bégin-Lamarche deposit.
First Phosphate said that the infrastructure projects are intended to address clean energy and transportation gaps in the region and support the development of critical mineral production. Eligible activities covered by the contributions are planned through 2030.
"This support from the Government of Canada for First Phosphate sends a strong message to our investors and partners in Quebec, Canada, and internationally," First Phosphate president Armand MacKenzie said.
"It reinforces confidence in our ability to carry out this strategic mining project and deliver our high-purity igneous phosphate to the market on schedule."
Tim Hodgson, Minister of Energy and Natural Resources, highlighted the role of infrastructure investment in connecting Canada’s resources with global markets while supporting jobs and strengthening supply chains.
“Investments like these help unlock our full potential by connecting projects to the infrastructure they need to move forward - creating jobs, strengthening supply chains and delivering lasting prosperity for Quebec and Canada,” Hodgson said.
Key Takeaways CVS beat Q2 earnings and revenue estimates as adjusted operating income improved across all segments.CVS raised 2026 EPS, revenue and operating cash flow guidance after stronger quarterly performance.CVS benefited from Government business growth, pharmacy volume gains and Rite Aid asset contributions. CVS Health Corporation (CVS - Free Report) reported second-quarter 2026 adjusted earnings per share (EPS) of $2.58 per share, up 42.5% year over year. The figure beat the Zacks Consensus Estimate by 37.97%. Revenues rose 7.3% to $106.10 billion and surpassed the consensus mark by 5.91%.
The upside reflected stronger adjusted operating income across all operating segments, led by Health Care Benefits. Medical membership was 26.0 million at quarter-end.
Following the announcement, CVS shares climbed 1% in the pre-market session today.
CVS’ Segment Performance Reflects Broad-Based ImprovementHealth Care Benefits revenues increased 3.5% year over year to $37.54 billion. The rise was driven by growth in the Government business, partly offset by the company’s exit from the individual exchange business in 2026.
Health Services revenues rose 11.5% to $51.80 billion. The improvement was supported by pharmacy drug mix and brand inflation, partially offset by continued pharmacy client price improvements.
Pharmacy & Consumer Wellness revenues jumped 0.7% to $33.82 billion. Growth from pharmacy drug mix, higher prescription volume, Rite Aid asset contributions and brand inflation was largely offset by regulatory-related price reductions, generic drug introductions and reimbursement pressure.
CVS Health’s Margin Performance ImprovesCVS Health’s gross profit, calculated as total revenues less cost of products sold and health care costs, came in at $15.75 billion, up 15.9% year over year. Gross margin expanded 110 basis points (bps) year over year to 14.8%.
Operating income surged 97.5% to $4.70 billion, outpacing revenue growth. The improvement reflected higher adjusted operating income across all operating segments and the absence of $833 million in legacy litigation charges recorded in the prior-year quarter. Operating margin expanded 200 bps to 4.4%.
Adjusted operating income rose 35.4% to $5.16 billion. Adjusted operating margin improved 100 bps to 4.9%, aided by operating expenses declining to $11.05 billion from $11.21 billion in the year-ago quarter.
CVS Health’s Liquidity and Capital Position ImproveCVS Health ended the quarter with cash and cash equivalents of $11.33 billion, up from $9.54 billion at March-end. Long-term debt stood at $59.45 billion, down from $60.53 billion at the end of first quarter.
Cumulative net cash provided by operating activities was $10.59 billion compared with $6.45 billion in the prior-year period.
CVS Health also paid $1.73 billion in dividends during the first half of 2026. Continued debt reduction and disciplined capital returns remain important watch items as the company advances its operating recovery.
CVS Health Raises 2026 GuidanceManagement raised its full-year 2026 targets following the quarter’s performance. CVS lifted its GAAP diluted EPS outlook to a range of $6.84-$7.04 from $6.24-$6.44 and boosted adjusted earnings guidance to $7.90-$8.10 from $7.30-$7.50. The Zacks Consensus Estimate expects 2026 adjusted EPS to be $7.46.
Revenues for the year are projected to be at least $414 billion, up from the earlier projection of at least $405 billion. The Zacks Consensus Estimate for the same stands at $409.0 billion.
The company also increased its cash flow from operations outlook to at least $11.5 billion from at least $9.5 billion. CVS said the update reflects improved expectations for the Health Care Benefits and Pharmacy & Consumer Wellness segments while maintaining a cautious view for the remainder of the year, given elevated cost trends and potential macroeconomic headwinds.
Our Take on CVS StockCVS Health exited the second quarter with earnings and revenues beating respective estimates. Health Care Benefits performance was supported by strength in the Government business. Health Services also maintained solid top-line momentum, aided by pharmacy drug mix and brand inflation. Within Pharmacy & Consumer Wellness, prescription growth benefited from incremental volume tied to CVS Health’s Rite Aid asset acquisitions. The raised top and bottom-line guidance for the year is highly encouraging.
Among the key developments are the introduction of a comprehensive approach to GLP-1 support across the CVS Pharmacy and MinuteClinic locations. Aetna launched its second-generation Aetna Claims Assist Manager, an AI-powered agentic claims advisor platform designed to streamline claims processing and improve payment accuracy.
CVS’ Zacks Rank & Other Key PicksCVS Health currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks from the broader medical space are Labcorp Holdings (LH - Free Report) , Quest Diagnostics (DGX - Free Report) and Medpace (MEDP - Free Report) .
Labcorp, carrying a Zacks Rank #2, reported second-quarter 2026 adjusted EPS of $4.99, which surpassed the Zacks Consensus Estimate by 4.18%. Revenues of $3.73 billion beat the Zacks Consensus Estimate by 0.36%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
LH has an earnings yield of 5.9% compared with the industry’s 4.1% yield. The company's earnings beat estimates in each of the trailing four quarters, the average surprise being 3.09%.
Quest Diagnostics, carrying a Zacks Rank #2 at present, posted second-quarter 2026 adjusted EPS of $3.12, exceeding the Zacks Consensus Estimate by 11%. Revenues of $3.04 billion topped the Zacks Consensus Estimate by 2.1%.
DGX has an earnings yield of 4.7%, almost in line with the industry’s yield. The company’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 5.77%.
Medpace, carrying a Zacks Rank #2 at present, posted second-quarter 2026 adjusted EPS of $4.25, exceeding the Zacks Consensus Estimate by 4.17%. Revenues of $707.3 million outperformed the consensus mark by 1.12%.
MEDP has an historical five-year earnings growth rate of 30.5% compared with the industry’s 5.6% growth. In the trailing four quarters, the company delivered an average earnings beat of 10.16%.
