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Zacks Premium includes access to the Zacks Style Scores as well.
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 ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
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.
#1 (Strong Buy) stocks have produced an unmatched +23.94% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
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.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing 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 #2 (Buy) 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 2.1% over the past four weeks.
Two analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.05 to $7.46 per share. CVS boasts an average earnings surprise of +16.8%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, CVS should be on investors' short list.
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CVS Health (NYSE:CVS | CVS Price Prediction) shares closed at $106.89 on July 23, 2026, up 78.2% over the past year. The rally has compressed the yield, but income investors still want to know how safe the payout is.
The Dividend at a Glance CVS pays a quarterly dividend of $0.665, or $2.66 annualized, translating to a forward yield of roughly 2.5%. The next payment lands August 3, 2026. Notably, the quarterly rate has been held at $0.665 for 10 consecutive quarters, meaning the company has paused raises while working through its turnaround. Yet there have been no dividend cuts in the company’s 27-year history.
Cash Flow Coverage: The Core Test Coverage looks comfortable. In FY 2025, operating cash flow was $10.64 billion, against $3.40 billion in common dividends, a payout ratio of 31.9%. After $2.83 billion in capital spending, free cash flow of roughly $7.8 billion covered the dividend more than 2.3x. Management raised its 2026 operating cash flow guidance to at least $9.5 billion, and adjusted EPS guidance to $7.30 to $7.50, well above the annualized $2.66 payout.
Earnings Momentum Is Building Q1 2026 reinforced the recovery. Adjusted EPS came in at $2.57 versus a $2.21 consensus, a 16.3% beat and the fifth consecutive quarterly beat. Revenue reached $100.43 billion, up 6.2% year over year, and Aetna’s medical benefit ratio improved to 84.6% from 87.3%. CEO David Joyner said, “Our positive performance is driven by strong execution across our enterprise.”
The Risks That Could Pressure the Payout The balance sheet still bears scars from the Aetna acquisition. Total liabilities stand at $175.34 billion against $77.64 billion in shareholder equity, and net interest expense of $3.12 billion in FY 2025 remains a material drag. FY 2025 also absorbed a $5.7 billion goodwill impairment tied to Health Care Delivery, approximately $1.2 billion in legacy litigation charges, and the Chapter 11 filing of Omnicare in September 2025. Q3 2025 alone produced operating losses of $3.2 billion, a reminder that volatility persists. Insider selling has also topped $323.7 million over the past three months.
The Verdict Coverage metrics point to a well-funded dividend: a payout ratio near 32% of operating cash flow, free cash flow of nearly $7.8 billion, and rising 2026 guidance. The frozen quarterly rate signals caution rather than distress. Investors should monitor Aetna’s medical cost trend, PBM regulation, and interest expense as the variables most likely to test that safety cushion.
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CVS Health (CVS - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Shares of this drugstore chain and pharmacy benefits manager have returned +6.1% 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 4.9% over this period. Now the key question is: Where could the stock be headed in the near term?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Earnings Estimate RevisionsRather 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.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current quarter, CVS Health is expected to post earnings of $1.87 per share, indicating a change of +3.3% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.4% over the last 30 days.
For the current fiscal year, the consensus earnings estimate of $7.46 points to a change of +10.5% from the prior year. Over the last 30 days, this estimate has changed +0.3%.
For the next fiscal year, the consensus earnings estimate of $8.39 indicates a change of +12.5% from what CVS Health is expected to report a year ago. Over the past month, the estimate has changed +0.3%.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for CVS Health.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue GrowthEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
In the case of CVS Health, the consensus sales estimate of $100.18 billion for the current quarter points to a year-over-year change of +1.3%. The $409 billion and $425.13 billion estimates for the current and next fiscal years indicate changes of +1.7% and +3.9%, respectively.
Last Reported Results and Surprise HistoryCVS Health reported revenues of $100.43 billion in the last reported quarter, representing a year-over-year change of +6.2%. EPS of $2.57 for the same period compares with $2.25 a year ago.
Compared to the Zacks Consensus Estimate of $94.38 billion, the reported revenues represent a surprise of +6.41%. The EPS surprise was +16.29%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty 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.
ConclusionThe 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 #2 does suggest that it may outperform the broader market in the near term.
Arvest Bank Trust Division increased its holdings in CVS Health Corporation (NYSE:CVS – Free Report) by 2,401.7% during the 1st quarter, according to the company in its most recent disclosure with the SEC. The institutional investor owned 66,945 shares of the pharmacy operator’s stock after acquiring an additional 64,269 shares during the quarter. Arvest Bank Trust Division’s holdings in CVS Health were worth $4,808,000 as of its most recent filing with the SEC.
A number of other hedge funds have also recently bought and sold shares of the business. Vanguard Group Inc. increased its holdings in CVS Health by 1.5% in the fourth quarter. Vanguard Group Inc. now owns 120,709,530 shares of the pharmacy operator’s stock valued at $9,579,508,000 after buying an additional 1,824,424 shares during the last quarter. State Street Corp increased its position 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 worth $4,776,182,000 after buying an additional 1,245,457 shares during the period. Capital International Investors increased its position 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 worth $2,189,793,000 after buying an additional 900,153 shares during the period. Norges Bank bought a new stake in CVS Health in the fourth quarter valued at $1,666,265,000. Finally, Morgan Stanley increased its holdings in shares of CVS Health by 6.3% in 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 during the period. Institutional investors and hedge funds own 80.66% of the company’s stock.
CVS Health Stock Up 2.6% CVS Health stock opened at $110.40 on Wednesday. CVS Health Corporation has a twelve month low of $58.50 and a twelve month high of $110.62. The company has a debt-to-equity ratio of 0.78, a quick ratio of 0.66 and a current ratio of 0.87. The firm has a market cap of $140.87 billion, a PE ratio of 48.64, a P/E/G ratio of 1.05 and a beta of 0.61. The firm’s 50 day moving average price is $99.58 and its two-hundred day moving average price is $85.58.
CVS Health (NYSE:CVS – Get Free Report) last issued its earnings results on Wednesday, May 6th. The pharmacy operator reported $2.57 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.21 by $0.36. CVS Health had a net margin of 0.72% and a return on equity of 11.88%. The company had revenue of $100.43 billion during the quarter, compared to analyst estimates of $94.99 billion. During the same quarter last year, the business posted $2.25 EPS. The company’s revenue for the quarter was up 6.2% on a year-over-year basis. CVS Health has set its FY 2026 guidance at 7.300-7.500 EPS. On average, research analysts predict that CVS Health Corporation will post 7.46 EPS for the current fiscal year.
CVS Health Dividend Announcement The company also recently announced a quarterly dividend, which will be paid on Monday, August 3rd. Shareholders of record on Thursday, July 23rd will be given a $0.665 dividend. This represents a $2.66 annualized dividend and a yield of 2.4%. The ex-dividend date of this dividend is Thursday, July 23rd. CVS Health’s dividend payout ratio is presently 117.18%.
Insider Activity In related news, Director Larry Robbins sold 1,983,538 shares of the stock in a transaction that occurred on Tuesday, May 19th. The stock was sold at an average price of $94.45, for a total value of $187,345,164.10. Following the transaction, the director owned 6,213,261 shares in the company, valued at approximately $586,842,501.45. This represents a 24.20% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, EVP Tilak Mandadi sold 69,551 shares of the firm’s stock in a transaction that occurred on Friday, May 8th. The shares were sold at an average price of $89.58, for a total transaction of $6,230,378.58. Following the transaction, the executive vice president directly owned 10,133 shares in the company, valued at approximately $907,714.14. The trade was a 87.28% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders sold 3,441,551 shares of company stock worth $323,703,977. Insiders own 0.85% of the company’s stock.
Key Headlines Impacting CVS Health Here are the key news stories impacting CVS Health this week:
Positive Sentiment: CVS announced that common prescription medications for dogs and cats are now available at its roughly 9,000 CVS Pharmacy locations nationwide, expanding the chain’s role beyond human prescriptions and potentially adding a small but incremental revenue stream while increasing store traffic. Pet medications now available at CVS Pharmacy® Positive Sentiment: Market commentary highlighted that CVS has been outperforming the broader market, reflecting continued investor confidence in the company’s ongoing operational improvement and turnaround efforts. CVS Health (CVS) Surpasses Market Returns: Some Facts Worth Knowing Positive Sentiment: Another report echoed the same outperformance theme, noting CVS’s strong trading versus the market and suggesting that investors remain focused on the company’s improving fundamentals. CVS Health (CVS) Surpasses Market Returns: Some Facts Worth Knowing Neutral Sentiment: A longer-form analysis argued CVS is still in the middle of a meaningful turnaround, with improving margins, declining leverage, and strong cash flow, but it also noted the stock is no longer viewed as a deep bargain after its rally. CVS Health Update: The C- Student Now Pulling Down A B+ Analysts Set New Price Targets Several research analysts have recently issued reports on CVS shares. Wells Fargo & Company increased their price target on CVS Health from $103.00 to $123.00 and gave the stock an “overweight” rating in a research note on Monday, July 13th. TD Cowen raised their price objective on shares of CVS Health from $105.00 to $110.00 and gave the company a “buy” rating in a research note on Monday, May 11th. HSBC reissued a “hold” rating and issued a $103.00 price objective on shares of CVS Health in a research note on Monday, July 6th. JPMorgan Chase & Co. lifted their price target on shares of CVS Health from $101.00 to $111.00 and gave the stock an “overweight” rating in a research report on Tuesday, May 12th. Finally, Cantor Fitzgerald upped their target price on CVS Health from $100.00 to $110.00 and gave the company an “overweight” rating in a report on Tuesday, July 7th. Twenty-one analysts have rated the stock with a Buy rating and three have given a Hold rating to the company’s stock. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus price target of $105.38.
Get Our Latest Analysis on CVS Health
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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Healthcare is quietly becoming the value hunter’s playground of 2026. While the mega cap tech trade keeps sucking up oxygen, two of the largest healthcare names in the S&P 500 are trading at forward multiples that look mispriced against their earnings power.
Morningstar’s 2026 outlook flagged US healthcare as one of the few sectors still offering broad value in an otherwise fully priced market, and PineBridge’s 2026 Equity Outlook noted that new pricing agreements with Medicare and Medicaid and a 15% cap on pharmaceutical imports have alleviated the worst tail risks for the sector.
Against that backdrop, CVS and Pfizer both trade well below their earnings-power valuations. One is a legitimate turnaround with a raised guide; the other is a dividend heavyweight rebuilding its pipeline. Here is the case for each in July.
CVS Health (NYSE: CVS) CVS Health (NYSE:CVS | CVS Price Prediction) has quietly become one of the best-performing large caps of 2026. Shares closed at $103.61 on July 6, 2026, riding a 30.76% year-to-date gain and a 56.84% run over the past 12 months. Even with that move, the valuation still screens as cheap: forward P/E of 14, well below the healthcare sector’s typical high-teens multiple, on a company generating trailing revenue of $405.6 billion.
The Q1 2026 report is what changed the story. CVS delivered adjusted EPS of $2.57 against a $2.21 consensus, a 16.47% beat, on revenue of $100.43 billion. That was the fourth consecutive EPS beat. The Aetna turnaround is the engine: Health Care Benefits adjusted operating income surged 52.6% to $3.04 billion, and the medical benefit ratio improved to 84.6% from 87.3%. Management responded by raising the full-year guide to adjusted EPS of $7.30 to $7.50 (from $7 to $7.20) and operating cash flow of at least $9.5 billion.
CEO David Joyner is leaning into the integrated model, telling investors CVS is building trust across “nearly 185 million people”. New GLP-1 initiatives layer on optionality: CVS launched a Medicare GLP-1 Bridge program with $50 monthly copays and a $49 MinuteClinic virtual weight-management visit in June 2026. Wall Street is warming up. The consensus analyst target sits at $105.69, with 24 Buy or Strong Buy ratings against only four Hold ratings and zero Sell ratings.
Risk to watch: the discount is narrowing. Elevated healthcare cost trends persist, pharmacy reimbursement pressure remains, and 2025 saw a $5.7 billion goodwill impairment tied to Health Care Delivery plus roughly $1.2 billion of legacy litigation charges. A stumble on medical cost trend could compress the multiple quickly.
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Pfizer (NYSE: PFE) Pfizer (NYSE:PFE) is where the “absurdly cheap” descriptor is doing real work. Shares traded at $24.08 as of July 7, 2026, and are essentially flat over the last year (+0.02%) and down 8.91% over the past month. At this price, forward P/E is 8, roughly half the healthcare sector average, and the dividend yield sits at 7.2% on a $1.72 annual payout.
The fundamentals tell a stronger story. Q1 2026 delivered adjusted diluted EPS of $0.75 versus a $0.72 consensus, a 3.92% beat, on revenue of $14.45 billion (+5.4% year over year), extending the EPS beat streak to five quarters. Launched and acquired products grew 22% operationally, with Padcev up 39% and Nurtec ODT/Vydura up 41%. Full-year guidance was reaffirmed at $59.5 billion to $62.5 billion in revenue and $2.80 to $3.00 in adjusted diluted EPS.
The pipeline is the second leg of the thesis. Roughly 20 key pivotal studies are on track to start in 2026, including obesity assets from the Metsera acquisition (~$7 billion) that Pfizer closed to bolster its GLP-1 pipeline. The Vyndamax patent settlement extended U.S. exclusivity to June 2031, taking a major overhang off the table. Meanwhile, the Lyme disease vaccine posted 73.2% efficacy in the Phase 3 VALOR trial. CEO Albert Bourla told investors he is “particularly encouraged by what we’re seeing in oncology and obesity, two areas where I believe Pfizer is positioned to lead.”
Income investors have another angle worth flagging (the Dividend Traps report is worth a look for anyone stress-testing yields above 7%).
Risk to watch: COVID revenue continues to normalize, with Comirnaty down 59% and Paxlovid down 63% operationally in Q1 2026, and management is guiding for roughly $1.5 billion in unfavorable revenue impact from generic and biosimilar competition in 2026. Add CFO Dave Denton’s August 15, 2026 departure for Nike and Section 232 pharma tariff uncertainty, and there is real reason the multiple is compressed. The question for investors is whether an 8x forward multiple with a 7.2% yield already prices those risks in.
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The company's community health investments are expanding access to housing, care and essential resources across the Commonwealth
, /PRNewswire/ -- CVS Health® (NYSE: CVS) today highlighted its continued investments in improving the health of communities across Massachusetts, spanning affordable housing, collaborations with local nonprofit organizations and free health services. Together, these efforts are helping expand access to care, resources and support for individuals and families throughout the state.
Health Starts at Home: Investing in Affordable Housing Across Massachusetts
CVS Health has invested more than $83 million in affordable housing across Massachusetts, helping create or preserve and renovate more than 3,517 affordable units throughout the Commonwealth. These investments support families, older adults and individuals across a range of communities, from Worcester to Boston's Jamaica Plain neighborhood to Salem, Attleboro and Foxborough, helping ensure more residents have access to safe, stable and affordable places to call home.
"When people have a safe and supportive place to live, everything else becomes possible," said Keli Savage, Vice President, Head of Real Estate & Impact Investments, CVS Health. "Through our ongoing investments in affordable housing we're helping build a healthier future for Massachusetts residents and the communities they call home."
Worcester Boys Club in Worchester, Massachusetts – CVS Health's $10 million investment in the property is supporting the historic adaptive reuse and new construction of the former Worcester Boys Club, providing 80 affordable units for older adults ages 55+, including five units set aside for households referred by the Massachusetts Department of Mental Health. Blessed Sacrament in Jamaica Plain, Boston – With nearly half of Boston renters reporting being cost-burdened, CVS Health is proud to have invested over $16 million towards the transformation of Blessed Sacrament in Jamaica Plain into 55 affordable homes for families across a range of incomes. The development will also include a community space operated by the Hyde Square Task Force, offering arts programs and youth services for residents and neighbors. Once complete, the revitalized 71,000-square-foot site—vacant since 2004—will serve as a vibrant cultural anchor for the Latin Quarter. Supporting Access to Nutritious, Medically Tailored Meals Through Community Servings
Since 2021, CVS Health has collaborated with Community Servings, a Boston-based nonprofit that prepares and delivers medically tailored meals to individuals and families managing serious illnesses across Massachusetts and Rhode Island. Community Servings' evidence-based model delivers scratch-cooked, medically appropriate meals, along with medical nutrition therapy, directly to the homes of those who are too ill to shop or cook for themselves.
With research consistently demonstrating that medically tailored meal programs are known to reduce healthcare costs and improve health outcomes, CVS Health's longstanding support has helped Community Servings expand its reach, deliver more meals and provide nutrition counseling to clients navigating conditions such as cancer, diabetes and heart disease.
Expanding Access to Care Throughout Greater Boston
CVS Health and the CVS Health Foundation are helping expand access to preventive care and health services across Greater Boston through Project Health® and by supporting the Massachusetts General Hospital Mobile Health Unit.
Through CVS Health Project Health®, free health screenings are offered at select CVS Pharmacy locations and community events across Greater Boston. Screenings include blood pressure, cholesterol, blood glucose and body mass index (BMI), giving participants a snapshot of key health indicators and connecting them with follow-up care when needed. Since launching, Project Health has provided thousands of free screenings across the Greater Boston area. The CVS Health Foundation awarded a grant to launch the Driving Equity and Maternal Health (DREAMH) program at Mass General Brigham, which includes funding for a Mobile Postpartum Care Unit. The mobile unit makes it possible for people who recently gave birth and are at high risk for complications during the postpartum period to receive convenient, no-cost monitoring and support. "The most meaningful impact happens when we listen and learn in our communities, and work alongside trusted local organizations to improve health outcomes," said Jenny McColloch, Chief Sustainability Officer and Vice President of Community Impact, CVS Health. "Across Massachusetts, we're proud to collaborate with community leaders and organizations to connect people to the resources, support and opportunities they need to create healthier communities."
CVS Health's investments across Massachusetts reflect a shared belief that healthier communities are built together. More information on the company's annual impact in Massachusetts can be found in CVS Health's Massachusetts Economic Impact 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 March 31, 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 88 million plan members. The Company also serves an estimated more than 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.
Bessemer Group Inc. boosted its holdings in shares of CVS Health Corporation (NYSE:CVS – Free Report) by 34.9% during the 1st quarter, according to the company in its most recent disclosure with the SEC. The institutional investor owned 35,994 shares of the pharmacy operator’s stock after acquiring an additional 9,320 shares during the quarter. Bessemer Group Inc.’s holdings in CVS Health were worth $2,585,000 at the end of the most recent reporting period.
A number of other institutional investors and hedge funds also recently made changes to their positions in the stock. Swiss RE Ltd. acquired a new stake in shares of CVS Health in the fourth quarter worth $26,000. Caitong International Asset Management Co. Ltd lifted its position 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 acquiring an additional 281 shares during the period. Sankala Group LLC acquired a new stake in CVS Health during the fourth quarter worth $28,000. Mcguire Capital Advisors Inc. acquired a new stake in shares of CVS Health during the 4th quarter valued at about $28,000. Finally, Ares Financial Consulting LLC acquired a new stake in CVS Health during the fourth quarter valued at approximately $29,000. Institutional investors and hedge funds own 80.66% of the company’s stock.
Insider Buying and Selling In related news, Director Larry Robbins sold 1,983,538 shares of CVS Health stock in a transaction dated Tuesday, May 19th. The shares were sold at an average price of $94.45, for a total transaction of $187,345,164.10. Following the completion of the sale, the director owned 6,213,261 shares of the company’s stock, valued at approximately $586,842,501.45. The trade was a 24.20% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, EVP Tilak Mandadi sold 69,551 shares of the firm’s stock in a transaction that occurred on Friday, May 8th. The stock was sold at an average price of $89.58, for a total transaction of $6,230,378.58. Following the sale, the executive vice president owned 10,133 shares of the company’s stock, valued at $907,714.14. This trade represents a 87.28% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders have sold 3,441,551 shares of company stock worth $323,703,977. Company insiders own 0.85% of the company’s stock.
Wall Street Analysts Forecast Growth Several brokerages have recently commented on CVS. Truist Financial boosted their target price on shares of 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 price objective on CVS Health from $94.00 to $106.00 and gave the company an “outperform” rating in a research report on Tuesday, May 12th. DA Davidson raised their target price on shares of CVS Health from $80.00 to $100.00 and gave the company a “buy” rating in a research note on Thursday, May 7th. Mizuho lifted their price objective on CVS Health from $110.00 to $115.00 and gave the stock an “outperform” rating in a research note on Monday, June 8th. Finally, Morgan Stanley boosted their price objective on shares of CVS Health from $106.00 to $111.00 and gave the company an “overweight” rating in a report on Thursday, June 4th. Twenty-one analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. Based on data from MarketBeat.com, CVS Health presently has an average rating of “Moderate Buy” and a consensus target price of $105.38.
Get Our Latest Analysis on CVS Health
Key CVS Health News Here are the key news stories impacting CVS Health this week:
Positive Sentiment: CVS announced that common prescription medications for dogs and cats are now available at its roughly 9,000 CVS Pharmacy locations nationwide, expanding the chain’s role beyond human prescriptions and potentially adding a small but incremental revenue stream while increasing store traffic. Pet medications now available at CVS Pharmacy® Positive Sentiment: Market commentary highlighted that CVS has been outperforming the broader market, reflecting continued investor confidence in the company’s ongoing operational improvement and turnaround efforts. CVS Health (CVS) Surpasses Market Returns: Some Facts Worth Knowing Positive Sentiment: Another report echoed the same outperformance theme, noting CVS’s strong trading versus the market and suggesting that investors remain focused on the company’s improving fundamentals. CVS Health (CVS) Surpasses Market Returns: Some Facts Worth Knowing Neutral Sentiment: A longer-form analysis argued CVS is still in the middle of a meaningful turnaround, with improving margins, declining leverage, and strong cash flow, but it also noted the stock is no longer viewed as a deep bargain after its rally. CVS Health Update: The C- Student Now Pulling Down A B+ CVS Health Stock Performance Shares of CVS opened at $110.40 on Wednesday. The stock has a market capitalization of $140.87 billion, a price-to-earnings ratio of 48.64, a PEG ratio of 1.05 and a beta of 0.61. The firm has a fifty day simple moving average of $99.58 and a 200 day simple moving average of $85.58. The company has a current ratio of 0.87, a quick ratio of 0.66 and a debt-to-equity ratio of 0.78. CVS Health Corporation has a 12 month low of $58.50 and a 12 month high of $110.62.
CVS Health (NYSE:CVS – Get Free Report) last released its earnings results on Wednesday, May 6th. The pharmacy operator reported $2.57 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.21 by $0.36. The business had revenue of $100.43 billion for the quarter, compared to analyst estimates of $94.99 billion. CVS Health had a return on equity of 11.88% and a net margin of 0.72%.CVS Health’s revenue was up 6.2% on a year-over-year basis. During the same quarter in the prior year, the company posted $2.25 earnings per share. CVS Health has set its FY 2026 guidance at 7.300-7.500 EPS. Research analysts forecast that CVS Health Corporation will post 7.46 EPS for the current fiscal year.
CVS Health Announces Dividend The company also recently disclosed a quarterly dividend, which will be paid on Monday, August 3rd. Stockholders of record on Thursday, July 23rd will be paid a dividend of $0.665 per share. The ex-dividend date is Thursday, July 23rd. This represents a $2.66 annualized dividend and a dividend yield of 2.4%. CVS Health’s payout ratio is currently 117.18%.
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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CNBC's Jim Cramer on Tuesday emphasized the importance of diversifying beyond the market's hottest artificial intelligence winners.
"I don't want you getting blown out because you owned nothing but semis and the group has a bad day," the "Mad Money" host said, referencing how investing with borrowed money can heighten the consequences of hot stocks cooling off.
Many stocks tied to AI infrastructure and data centers have posted extraordinary gains over the past year, particularly memory-chip makers like Micron and Western Digital. However, recent pullbacks across that cohort have highlighted how quickly momentum can reverse. While Cramer said he remains bullish on the long-term outlook for the AI trade, he warned that no single investment theme should dominate a portfolio.
"I'm not anti-tech. But I do like diversification," he said.
Cramer pointed to the investors who lost fortunes by concentrating their portfolios in internet stocks during the dot-com bubble and financial institutions ahead of the Great Recession. He said he witnessed firsthand how quickly leveraged bets on a single sector could wipe out even sophisticated investors.
"I've seen so many people never ever come back" from owning stocks that went to zero during the dot-com crash, Cramer said.
Rather than abandoning technology altogether, Cramer said investors should broaden their exposure by owning high-quality companies benefiting from different long-term trends.
He highlighted Johnson & Johnson for its innovative drug pipeline and 3M for its renewed focus on innovation across a variety of industries. Cramer also pointed to CVS Health's combination of retail pharmacies and health insurance, as well as financial firms such as Goldman Sachs, Wells Fargo and BNY, arguing they offer compelling growth opportunities at valuations well below many AI leaders. Cramer's Charitable Trust, the portfolio run by CNBC's Investing Club, owns shares of Johnson & Johnson, Goldman Sachs and Wells Fargo.
"It just doesn't make sense to me why you can't diversify into these other stocks and make money, something we do with my Charitable Trust, where we've given out almost $5 million in gains by being diversified through thick and thin for 25 years," Cramer said.
CVS Health (CVS - Free Report) closed at $110.60 in the latest trading session, marking a +2.78% move from the prior day. This move outpaced the S&P 500's daily gain of 0.89%. At the same time, the Dow added 0.74%, and the tech-heavy Nasdaq gained 1.29%.
Heading into today, shares of the drugstore chain and pharmacy benefits manager had gained 6.23% over the past month, outpacing the Medical sector's gain of 4.77% and the S&P 500's loss of 0.63%.
The investment community will be closely monitoring the performance of CVS Health in its forthcoming earnings report. The company is scheduled to release its earnings on August 5, 2026. It is anticipated that the company will report an EPS of $1.87, marking a 3.31% rise compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $100.18 billion, up 1.28% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $7.46 per share and revenue of $409 billion, which would represent changes of +10.52% and +1.72%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for CVS Health. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.28% higher. CVS Health is currently a Zacks Rank #2 (Buy).
In terms of valuation, CVS Health is presently being traded at a Forward P/E ratio of 14.43. This indicates a discount in contrast to its industry's Forward P/E of 15.64.
We can also see that CVS currently has a PEG ratio of 1.05. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Medical Services stocks are, on average, holding a PEG ratio of 1.55 based on yesterday's closing prices.
The Medical Services industry is part of the Medical sector. With its current Zacks Industry Rank of 85, this industry ranks in the top 35% of all industries, numbering over 250.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
Next time you need to fill your pet’s prescription, you might be able to pick up your own at the same time. Tuesday CVS Health announced plans to carry dog and cat medications alongside human ones in its pharmacies.
Medications such as antibiotics, allergy, flea, and tick control, insulin, pain relievers, and more will be available at around 9,000 CVS Pharmacies nationwide. Those prescriptions will also be eligible for automatic refills, prescription syncing, as well as delivery (for some medications).
“We’re proud to be a trusted partner in our patients’ health care journeys,” Sid Tenneti, Senior Vice President and Interim President, Pharmacy and Consumer Wellness, CVS Health, said in the release.
Tenneti continued, “With the addition of pet medication dispensing, CVS Pharmacy can now serve every member of the family. Combined with our convenient locations, extended hours, and broad range of health and wellness products, we offer a true one-stop destination for care.”
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When it comes to filling a prescription, it’s not dissimilar to how it works for human medications. Pet owners can bring the physical paper slip to the pharmacy to have it filled or have their pet’s veterinarian contact the pharmacy directly. The pet owner can pick the medication up at the pharmacy or opt for delivery (when eligible).
In order to help streamline the process, pet owners can also add their dogs and cats to their CVS profile, just like any human family member, to manage their prescriptions online or through the CVS Health app. CVS says that soon, the app will offer even more customer control.
“Additional enhancements to help make the new service even more convenient for pet owners and veterinarians, including electronic prescription capabilities, will be added in the coming months,” the announcement explains.
CVS is not the first major pharmacy to add pet prescriptions to its list of offerings. Costco, Walmart, Walgreens, and Publix already offer the service.
In recent months, CVS has made other major changes, too. The company just underwent a major rebranding, altering its packaging on thousands of health products. CVS previously told Fast Company the rebrand is part of the pharmacy’s plan to become customers’ go-to store for health and wellness products.
In a statement, Mike Wier, VP of store brands at CVS Health, said, “With this evolution of the CVS brand, we’re not only simplifying shopping for customers, but we’re also aiming to become the health and wellness brand they think of first when seeking trusted solutions that deliver value and convenience.”
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Dog and cat owners can now fill common pet prescriptions at all CVS Pharmacy locations nationwide
, /PRNewswire/ -- CVS Health® (NYSE: CVS) today announced that common prescription medications for dogs and cats are now available at its approximately 9,000 CVS Pharmacy® locations nationwide. Pet owners can fill prescriptions for select pet-only medications, including antibiotics, allergy, flea and tick control, insulin, and pain relievers, at their local CVS Pharmacy, expanding access to essential pet health care. Greater flexibility in where pet prescriptions are filled helps reduce stress and delays, ensuring pets receive the medications they need conveniently while supporting their health and well-being.
Pet medications now available at CVS Pharmacy locations nationwide. Pet prescriptions are eligible for many of the same pharmacy services as their owners', including automatic refills and prescription syncing, helping simplify ongoing care. Select medications may also be available for delivery.
"We're proud to be a trusted partner in our patients' health care journeys," said Sid Tenneti, Senior Vice President and Interim President, Pharmacy and Consumer Wellness, CVS Health. "With the addition of pet medication dispensing, CVS Pharmacy can now serve every member of the family. Combined with our convenient locations, extended hours, and broad range of health and wellness products, we offer a true one-stop destination for care."
How it works
Pet owners who would like to fill their pet's medication at CVS Pharmacy simply need to present a written prescription or ask their veterinarian to contact the pharmacy directly. Once CVS Pharmacy receives the prescription, the pet owner can choose to pick it up in-store or opt to have it delivered, if eligible.
Pet owners can add their pets to their CVS.com profile and manage eligible pet prescriptions through the CVS Health app. Additional enhancements to help make the new service even more convenient for pet owners and veterinarians, including electronic prescription capabilities, will be added in the coming months.
Medications and more
In addition to prescription pet medications, pet owners can find everything from shampoos and wet and dry food, to flea and tick care and dental treats in the Pet section of CVS Pharmacy stores and on CVS.com. CVS Pharmacy's own Pet Central brand includes a variety of products for dogs and cats, including ergonomic grooming tools, pet care and wellness accessories, toys, cat litter and puppy training pads, with new items coming in September. Additional national brand products have been recently added to the assortment as well, including items from Milk-Bone, Greenies, Churu, Savory Prime and Temptations.
To learn more about pet medication dispensing at CVS Pharmacy, including which pet medications are currently available, visit https://www.cvs.com/content/pharmacy/pet-meds.
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 March 31, 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 88 million plan members. The Company also serves an estimated more than 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
Roslyn Guarino
781-974-3962
[email protected]
CVS Health (CVS) is executing a significant turnaround, with new management driving operational improvements and a doubling of the share price since I last wrote in early 2025. CVS's fundamentals are solid: debt leverage is declining, cash flow is robust, and the Health Care Benefits segment's margin rebounded to 8.5% as of 1Q2026. Despite improved profitability and projected 10–15% annual EPS growth, CVS stock no longer appears to be in the bargain bin.
Pharmacy-focused sites to open in select communities to help increase access to pharmacy care
Openings are part of ongoing commitment to serve communities and meet consumers where they are
, /PRNewswire/ -- CVS Health® (NYSE: CVS) today unveiled its first pharmacy-focused CVS Pharmacy® in Houston. The new pharmacy, located at 8503A Gulf Freeway in south Houston, will help bridge gaps in pharmacy care and make it easier for community members to access medications, immunizations and other health care services provided by pharmacists.
CVS Pharmacy opens first pharmacy-focused location in Houston, TX. Nearly 20 pharmacy-focused locations will open in select communities across the country, increasing access to vital pharmacy care. Each site will feature a full-service pharmacy with a customized selection of over-the-counter products available for purchase. With footprints averaging around 3,000 square feet, the pharmacy-focused locations will help ensure patients have access to prescription medications and the trusted advice and counsel of their neighborhood CVS pharmacist.
"Community pharmacists are often the most accessible healthcare professionals in the communities they serve," said Sid Tenneti, Senior Vice President and Interim President, Pharmacy and Consumer Wellness, CVS Health. "Our new pharmacy-focused locations optimize how we engage with communities by expanding access to trusted care, clinical expertise, and personalized support. We help people get the guidance, medications, and pharmacy care services they need where, when and how they need it most."
Multiple pharmacy formats to meet community health needs
The new pharmacy-focused locations are just one component of the company's work to reinvent pharmacy. By taking a customized approach focused on the diverse needs of the communities they serve, CVS Pharmacy has worked to strategically realign its retail footprint over the last few years. The new pharmacies will help the company better support its patients in those communities, ensuring its footprint is the right size and scale, and addressing shifts in the pharmacy industry.
These smaller neighborhood pharmacies join several other formats already in place across the country. They include CVS Pharmacy's traditional full-service front store and pharmacy locations, store-in-store pharmacies, such as those inside Target and Schnucks grocery stores, CVS Pharmacy stores that feature a MinuteClinic retail medical clinic, and side-by-side CVS Pharmacy and Oak Street Health care centers, primarily located in neighborhoods with high Medicaid populations.
The company has opened pharmacy-focused locations in Birmingham, AL, Chicago, IL, Detroit, MI, and in Washington, D.C. In addition to the new site near the Gulf Freeway, two additional pharmacy-focused locations are planned in the greater Houston area over the next year. The company also plans to open more than 40 new CVS Pharmacy locations, including traditional stores and pharmacies in Target.
Importance of one-on-one interactions with pharmacists
The 2025 CVS Health® Rx Report highlighted that 80% of patients prefer face-to-face pharmacy care, and nearly half (48%) would switch pharmacies if limited to digital-only options. The overwhelming majority of pharmacy professionals (97%) also say in-person interactions remain vital.
Added Tenneti, "Access to local, timely health care matters – which is why, whether in-person, online, or a combination of the two, our community pharmacists provide trusted counsel and best-in-class service through consistent, personalized experiences that focus on helping patients become their healthiest."
"In the expansive Greater Houston metropolitan area, being able to walk into any of our pharmacies, speak directly with a pharmacist, and have in-person access to pharmacy services is important," Thanh Hoang, Pharmacy Manager, CVS Pharmacy. "Our pharmacists live and work within the communities they serve and because authentic connections are created through meaningful interactions, patients and customers trust their local pharmacy teams."
Whether a patient prefers the convenience of same-day or 1- to 2-day prescription delivery or prefers to visit their local pharmacy in-person, CVS Pharmacy is ensuring patients have multiple care options to choose from, depending on their individual needs.
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 March 31, 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 88 million plan members. The Company also serves an estimated more than 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 contacts
Shannon Dillon
346-291-7131
[email protected]
Have you been paying attention to shares of CVS Health (CVS - Free Report) ? Shares have been on the move with the stock up 5.4% over the past month. The stock hit a new 52-week high of $106.93 in the previous session. CVS Health has gained 33.8% since the start of the year compared to the -1.1% gain for the Zacks Medical sector and the -0.7% return for the Zacks Medical Services industry.
What's Driving the Outperformance?The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on May 6, 2026, CVS Health reported EPS of $2.57 versus consensus estimate of $2.21 while it beat the consensus revenue estimate by 6.41%.
For the current fiscal year, CVS Health is expected to post earnings of $7.46 per share on $409 in revenues. This represents a 10.52% change in EPS on a 1.72% change in revenues. For the next fiscal year, the company is expected to earn $8.39 per share on $425.13 in revenues. This represents a year-over-year change of 12.49% and 3.94%, respectively.
Valuation MetricsCVS Health may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
CVS Health has a Value Score of A. The stock's Growth and Momentum Scores are C and C, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 14.2X current fiscal year EPS estimates, which is not in-line with the peer industry average of 15.9X. On a trailing cash flow basis, the stock currently trades at 7.1X versus its peer group's average of 10.3X. Additionally, the stock has a PEG ratio of 1.04. This is good enough to put the company in the top echelon of all stocks we cover from a value perspective, making CVS Health an interesting choice for value investors.
Zacks RankWe also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, CVS Health currently has a Zacks Rank of #2 (Buy) thanks to a solid earnings estimate revision trend.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if CVS Health fits the bill. Thus, it seems as though CVS Health shares could have a bit more room to run in the near term.
How Does CVS Stack Up to the Competition?Shares of CVS have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Labcorp Holdings Inc. (LH - Free Report) . LH has a Zacks Rank of #2 (Buy) and a Value Score of B, a Growth Score of B, and a Momentum Score of D.
Earnings were strong last quarter. Labcorp Holdings Inc. beat our consensus estimate by 3.91%, and for the current fiscal year, LH is expected to post earnings of $18.00 per share on revenue of $14.71 billion.
Shares of Labcorp Holdings Inc. have gained 4.1% over the past month, and currently trade at a forward P/E of 15.31X and a P/CF of 11.1X.
The Medical Services industry may rank in the bottom 64% of all the industries we have in our universe, but there still looks like there are some nice tailwinds for CVS and LH, even beyond their own solid fundamental situation.
When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?
Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about CVS Health (CVS - Free Report) .
CVS Health currently has an average brokerage recommendation (ABR) of 1.32, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 25 brokerage firms. An ABR of 1.32 approximates between Strong Buy and Buy.
Of the 25 recommendations that derive the current ABR, 20 are Strong Buy and two are Buy. Strong Buy and Buy respectively account for 80% and 8% of all recommendations.
Brokerage Recommendation Trends for CVS
Check price target & stock forecast for CVS Health here>>>
While the ABR calls for buying CVS Health, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential.
Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations.
In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.
Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.
ABR Should Not Be Confused With Zacks RankAlthough both Zacks Rank and ABR are displayed in a range of 1--5, they are different measures altogether.
The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.
On the other hand, earnings estimate revisions are at the core of the Zacks Rank. And empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.
There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices.
Should You Invest in CVS?In terms of earnings estimate revisions for CVS Health, the Zacks Consensus Estimate for the current year has increased 0.3% over the past month to $7.46.
Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for CVS Health. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Therefore, the Buy-equivalent ABR for CVS Health may serve as a useful guide for investors.
The agency estimates the agreement could generate up to $8.5 billion in consumer savings over the next decade, with an additional $4.5 billion in savings through point-of-sale rebates.
FTC Closes Long-Running Case Against CaremarkAccording to the agency, drug manufacturers competed for formulary placement by offering larger rebates rather than lower net prices, enabling PBMs to retain higher rebates and fees while increasing out-of-pocket costs for patients whose copays and coinsurance were tied to list prices.
The FTC previously settled similar allegations with Express Scripts in February 2026.
The case against Optum has since been withdrawn from adjudication while the agency considers a proposed consent agreement.
Settlement Requires Changes To Rebate And Pricing PracticesUnder the proposed consent order, Caremark must stop disadvantaging lower wholesale acquisition cost versions of drugs on its standard formularies.
The PBM also must offer plan sponsors options that pass manufacturer rebates directly to members at the point of sale.
The agreement further requires Caremark to provide alternatives to rebate guarantees and spread pricing, to separate manufacturer fees from drug list prices, to increase transparency, and to include specific contractual terms for retail community pharmacies.
In addition, Caremark must maintain insulin affordability programs that cap patients’ out-of-pocket costs when adopted by plan sponsors, unless those sponsors opt out in writing.
Pharmacy Access Provisions IncludedThe settlement also addresses the FTC’s concerns over pharmacy hub service providers that assist patients with prior authorizations, financial assistance, medication delivery, and refill reminders.
Under the agreement, Caremark cannot unfairly restrict pharmacies from working with these providers. An independent monitor will oversee complaints and review actions involving pharmacies that use hub services.
CVS Price Action: CVS Health shares were down 1.77% at $104.30 during premarket trading on Wednesday. The stock is approaching its 52-week high of $106.93, according to Benzinga Pro data.
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Providers give a 6.1 payer trust score, up from 5.4 in the previous study Providers weigh in on the potential of technology-enabled solutions to reduce administrative burden and save valuable time , /PRNewswire/ -- Aetna®, a CVS Health® company (NYSE: CVS) today announced findings from the second Aetna Provider Survey. The Aetna Provider Survey is a quarterly study that polls the U.S. provider market to better understand their perceptions on payers and the industry, today and into the future. This survey series is intended to solicit timely, objective feedback from the U.S. provider market so we can identify opportunities to change the provider-payer dynamic and deepen trust over time.
The study revealed the average provider-payer trust score on a scale from 1-10 is now 6.1, up from 5.4 in the first quarter (Q1), with 38% of providers ranking payers 8 or higher. Providers are also recognizing that payers are making strides in several areas:
52% agree payers consistently deliver on their promises, an increase of 16 percentage points from Q1 56% agree payers provide clear coverage information, an increase of 12 percentage points from Q1 44% agree payers help patients navigate the health care system, an increase of 6 percentage points from Q1 "Trust is a foundational element of health care today. To truly transform the system, we need to continue to deepen the provider-payer relationship," said Steve Nelson, Executive Vice President and President of Aetna, "At Aetna, we've invested significant time and resources to listen to our provider partners and take actions accordingly. I'm encouraged to see that these efforts are being acknowledged and, while there is more work ahead, we are heading in the right direction today and into the future."
Reducing administrative burden to unlock more time for patient care
Providers continue to rank administrative burden as their top challenge, pointing overwhelmingly to managing patient records or prior authorization as the single biggest contributor — together, 84% of responses. They identified submitting prior authorization requests (58%), re-entering patient information (42%) and submitting claims (41%) as key pain points that can be unlocked by technology.
By rolling out technology enabled solutions, providers saw meaningful time savings for clinicians that can be redirected to patient care. More than 30% of respondents expect to save more than an hour and 80% expect to save more than 30 minutes daily.
Improving interoperability to help improve patient care
The majority (68%) of providers cited interoperability and data integrity as their top technology challenge, with almost a third (29%) stating that providing real time patient data is the most important action payers can take to help their clinical teams. In fact, almost half of respondents (47%) believe that having this data could save more than 10 minutes per appointment.
Providers cited other tangible benefits to their patients, with the top three answers including:
More informed treatment decisions at the point of care (63%) Fewer claim denials and resubmissions (54%) Reduced patient wait times for treatment approvals (47%) Leveraging digital tools to help members access care
Providers believe that new digital tools from payers – which include apps, portals and messaging tools – can make a significant improvement in patient navigation and engagement.
71% agree that payers' digital services help patients better understand benefits and care options 68% agree payers' digital services help patients better understand status of a prior authorization 72% agree that payers' digital services help patients understand their claims status Over the next five years, 84% agree that advances in technology will lead to better health outcomes, and 72% expect both population health and the patient experience to improve.
Survey methodology and the Aetna Provider Survey
The national study was conducted in Q2 2026 by Morning Consult, a global decision intelligence company. The survey polled a representative sample of U.S. providers comprised of 723 participants, including hospital system executives, physicians, nurses, pharmacists, and health IT leaders (CTO/CIOs) nationwide. The overall margin of error is ±4 percentage points.
The Aetna Provider Survey is a quarterly study that polls a representative sample of the U.S. provider market to better understand their perceptions, opportunities, and challenges today and into the future. This survey series is intended to solicit timely, objective feedback from the U.S. provider market so we can identify opportunities to change the provider-payer dynamic and deepen trust over time.
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 March 31, 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 88 million plan members. The Company also serves an estimated more than 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.
U.S. President Donald Trump arrives to an event to unveil the TrumpRx drug discount site, in the South Court Auditorium on the White House campus, in Washington, D.C., U.S., February 5, 2026.... Purchase Licensing Rights, opens new tab Read more
SummaryCompaniesSettlement would count TrumpRx purchases toward some plan deductiblesCVS must offer clients an option to opt out of rebate payment models, the FTC saidCVS said it would cap insulin out-of-pocket costs at $25 per monthNEW YORK, July 14 (Reuters) - CVS Health's (CVS.N), opens new tab Caremark has finalized a settlement with the U.S. Federal Trade Commission in which it agreed to curb use of after-market discounts known as rebates and count consumers' TrumpRx purchases toward their deductibles, an FTC spokesperson said on Tuesday.
Similar to Cigna's settlement with the FTC earlier this year, the deal would curb practices critics say contribute to high drug costs. It would also require CVS' Caremark pharmacy benefit manager to include a patient's payments through the TrumpRx drug website toward the deductibles some of its health plans require, once regulations are in place to facilitate the TrumpRx program.
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The settlement is expected to bring billions of dollars in savings on drug prices, FTC Chairman Andrew Ferguson said in a statement.
“The FTC under President Trump won’t stand for anticompetitive behavior that drives up prices for American consumers,” Ferguson said.
U.S. President Donald Trump launched TrumpRx.gov, a website offering hundreds of generic and branded drugs at a discount, in February, with a particular focus on connecting consumers with low prices for highly popular weight-loss drugs from Eli Lilly (LLY.N), opens new tab and Novo Nordisk (NOVOb.CO), opens new tab.
Health plan deductibles are the minimum spend members must reach before leveraging their coverage. TrumpRx.gov sends cash-pay customers to drugmaker websites for discounted drugs, but has operated outside of insurance, limiting its value for some American consumers.
CVS must also provide an option to clients that allows them to opt out of rebate payment models, a spokesperson for the FTC said. These rebates are paid by drugmakers to the pharmacy benefit manager and may or may not be passed on to the plan sponsor or consumer after a certain drug is dispensed.
Small pharmacies would also be given the option to be reimbursed for the actual cost of drugs they dispense plus a fee, in a bid to address complaints that pharmacy benefit managers do not fully reimburse independent local pharmacies.
“Today’s agreement advances and reinforces the changes we have already put in place and ensures affordability for families and patients across the country," said Ed DeVaney, a president at Caremark.
The decision to eliminate rebates will vary based on the client and how individual employers choose to structure their own pharmacy benefit, a spokesperson for CVS said. But the company aims to encourage its clients to pass through discounts to individual members, CVS said in a release on Tuesday.
The FTC's original lawsuit, launched in 2024, said Caremark, Cigna's (CI.N), opens new tab Express Scripts, and UnitedHealth's OptumRx (UNH.N), opens new tab forced patients to pay higher prices for insulin.
CVS reached a proposed settlement with the regulator in March, and the FTC said the deal was similar to one with Express Scripts.
Regulators have said the rebate model incentivizes companies to raise list prices and ultimately steers customers to pricier drugs.
Pharmacy benefit managers negotiate the price of drugs with manufacturers, on behalf of plan sponsors, such as employers.
CVS will also enhance its reporting on the price of drugs and member payments it receives, shift to a fee-based compensation structure, and cap out-of-pocket cost of insulin at $25 per month, the company said.
Reporting by Amina Niasse and Jody Godoy in New York; editing by Caroline Humer and Aurora Ellis
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Jody Godoy reports on tech policy and antitrust enforcement, including how regulators are responding to the rise of AI. Reach her at [email protected]
, /PRNewswire/ -- CVS Caremark today announced a global settlement with the Federal Trade Commission (FTC) which further advances the company's leadership in delivering greater affordability for prescription drugs. The settlement resolves all outstanding FTC litigation and investigations related to CVS Health® (NYSE: CVS) — including its pharmacy benefits management and affiliated pharmacy businesses — involving rebate, pharmacy network contracting, and vertical integration issues.
The agreement eliminates the need for ongoing litigation and investigations and allows CVS Caremark to remain focused on delivering more value for American consumers and employers, lowering prescription drug costs, increasing transparency, and helping customers deliver affordable health care to the people they serve.
"CVS Caremark has led the industry in evolving the pharmacy benefit management model and has delivered value to our customers and clients," said Ed DeVaney, Executive Vice President CVS Health and President, CVS Caremark. "Today's agreement advances and reinforces the changes we have already put in place and ensures affordability for families and patients across the country. CVS Caremark remains committed to lowering costs and bringing greater transparency to prescription drug pricing."
The changes CVS Caremark has made, and continues to make, are lowering the cost of health care for millions of people:
Last year alone, CVS Caremark negotiated with pharmaceutical companies to save our clients and their members nearly $80 billion on their prescription drugs. As an early advocate of offering point-of-sale rebates to our clients, CVS Caremark delivered nearly $900 million in savings to 25 million Americans just last year. Through greater client adoption of point-of-sale rebates, and continued innovation, we expect to help our clients drive estimated savings of $450 million per year for each of the next 10 years. As outlined in the agreement CVS Caremark will implement a series of actions into its standard offering to commercial clients, including:
Aligning certain member cost sharing more closely with the net cost of medications after rebates to help push more savings to members at the point-of-sale Simplifying pricing structures by moving away from rebate guarantees and spread pricing Expanding transparency through enhanced reporting on drug pricing, rebates, and member payments, along with disclosure of broker and consultant compensation Expanding affordability programs for medicines, including a new offering that will cap members' insulin costs at $25 per month Promoting point-of-sale rebate passthrough as a standard option to encourage plan sponsors to share drug cost savings more directly with members at the pharmacy counter Delinking manufacturer compensation from list prices Transitioning to acquisition-based reimbursement for independent retail pharmacies to ensure reimbursements are more closely aligned with their actual costs Counting TrumpRx purchases toward member deductibles and out-of-pocket maximums where allowed by law, subject to certain conditions in the settlement CVS Caremark continues to introduce innovations that simplify the pharmacy experience and help lower prescription drug costs. These efforts include expanding automated prior authorization technology, accelerating the adoption of lower cost biosimilars through formulary strategies, and offering benefit designs that provide greater transparency and predictability in prescription pricing.
Many of the measures in the agreement align with CVS Caremark's existing affordability and transparency initiatives, including point-of-sale rebate options, flat-dollar copays, copay caps, $0 preventive drug lists, and the TrueCost™ pricing model each designed to reduce out-of-pocket costs and provide greater clarity at the drug level. These efforts also include ReducedRx®, which offers $25/month insulin at more than 60,000 network pharmacies nationwide. In addition, Aetna has been providing fully insured commercial clients with point-of-sale rebates since 2019.
CVS Caremark will begin implementing the provisions of the agreement in accordance with timelines established with the FTC and will continue working with regulators, employers, and industry partners to strengthen transparency and affordability across the pharmacy benefit system.
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 March 31, 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 88 million plan members. The Company also serves an estimated more than 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
[email protected]
Investor contact
Larry McGrath
800-201-0938
[email protected]
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.
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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.
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The Style Scores are broken down into four categories:
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VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.
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 +23.94% 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.
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That's where the Style Scores come in.
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.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
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 #2 (Buy) on the Zacks Rank, with a VGM Score of B.
It also boasts a Value Style Score of A thanks to attractive valuation metrics like a forward P/E ratio of 14.24; value investors should take notice.
One analyst revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.03 to $7.44 per share. CVS boasts an average earnings surprise of +16.8%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, CVS should be on investors' short list.
Over the past few weeks, oil prices have decreased as geopolitical tensions in the Middle East have eased. While that's great news, this is still an evolving situation, and we can't say for sure that we are out of the woods. It is still possible that the economy will enter a recession relatively soon, and if it does, it may drag down broader equities along with it. Investors can prepare for this by buying shares in companies that perform relatively well even during economic downturns. Let's consider two stocks that fit the bill: CVS Health (CVS +1.29%) and Gilead Sciences (GILD 3.79%). Read on to find out why these two healthcare leaders are great picks to prepare a well-diversified portfolio for a recession.
Image source: Getty Images.
1. CVS Health Although it is best known as a pharmacy chain operator, CVS Health has a diversified healthcare business that spans primary care and health insurance, and it is also a leading pharmacy benefits manager. The company's operations are fairly defensive and can perform relatively well even during recessions. Take CVS' insurance business. Health insurers tend to experience steady demand even as the economy weakens, since patients continue to seek medical services regardless of economic conditions.
CVS Health also has significant exposure to government-sponsored healthcare plans. While that comes with some risks, one advantage is that government programs can be somewhat resilient during recessions (although they are by no means recession-proof). CVS Health's other businesses display similar characteristics, making it an attractive stock to buy during recessions.
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Meanwhile, despite encountering some headwinds in recent years, CVS Health has bounced back. The company's financial results have improved as it has found a way to better control rising expenses and shrinking margins within its Medicare Advantage business. Further, the company has attractive long-term prospects, given its diversified healthcare operations, competitive advantages from several sources -- including steep barriers to entry in the insurance industry -- and the expectation that healthcare spending will increase over the long run as the world's population ages.
Finally, CVS Health is a solid dividend stock. It offers a forward yield of 2.6%, compared to the S&P 500's average of 1.1%, and it has increased its payouts by 56.5% over the past decade. CVS Health is an attractive dividend stock to buy for investors worried about a coming recession.
2. Gilead Sciences Gilead Sciences is a leading drugmaker. The company is known for its work in the market for HIV medicines, where it is one of the top players thanks to therapies like Biktarvy (the top prescribed HIV regimen in the U.S.) and Descovy for PrEP. Over the past few years, it has also made progress within its oncology business. Gilead Sciences should see consistent demand for its products even in an economic downturn. HIV patients take medicines for the rest of their lives.
Frequent missed doses can lead to significant health problems. Additionally, for most patients, third-party payers cover much of the bill. We could say something similar about Gilead Sciences' oncology business. Some may argue that top-line growth has been slow for the company in recent years.
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Demand for the company's Veklury, a COVID-19 treatment, has been fairly inconsistent. However, Gilead Sciences' pipeline should help address this problem. Relatively recent launches -- such as Livdelzi, a medicine for primary biliary cholangitis (a chronic autoimmune disorder) -- and future ones, like anito-cel, an investigational cancer medicine that could earn approval by year-end, could help boost its financial results. Gilead Sciences has a deep pipeline, and its most important medicine, Biktarvy, won't lose patent exclusivity for another decade. Finally, the company offers a forward yield of 2.4% and has grown its payouts by 74.5% over the past 10 years. Gilead Sciences could help stabilize investors' portfolios in a recession.
Resources Investor Relations Journalists Agencies Client Login Send a Release News Products Contact , /PRNewswire/ -- CVS Health® (NYSE: CVS) has announced that its board of directors has approved a quarterly dividend of sixty-six and one-half cents ($0.665 cents) per share on the Common Stock of the Corporation. The dividend is payable on August 3, 2026, to holders of record on July 23, 2026.
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 March 31, 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 88 million plan members. The Company also serves an estimated more than 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
[email protected]
Investor contact
Larry McGrath
800-201-0938
[email protected]
In the latest close session, CVS Health (CVS - Free Report) was down 1.59% at $102.81. This change lagged the S&P 500's daily gain of 0.81%. Elsewhere, the Dow gained 0.27%, while the tech-heavy Nasdaq added 1.3%.
The drugstore chain and pharmacy benefits manager's stock has climbed by 6.58% in the past month, falling short of the Medical sector's gain of 7% and outpacing the S&P 500's gain of 1.13%.
Analysts and investors alike will be keeping a close eye on the performance of CVS Health in its upcoming earnings disclosure. The company's earnings report is set to go public on August 5, 2026. The company's upcoming EPS is projected at $1.86, signifying a 2.76% increase compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $100.18 billion, reflecting a 1.28% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $7.44 per share and revenue of $409 billion, which would represent changes of +10.22% and +1.72%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for CVS Health. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Currently, CVS Health is carrying a Zacks Rank of #2 (Buy).
With respect to valuation, CVS Health is currently being traded at a Forward P/E ratio of 14.05. This valuation marks a discount compared to its industry average Forward P/E of 15.57.
We can also see that CVS currently has a PEG ratio of 1.02. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The average PEG ratio for the Medical Services industry stood at 1.46 at the close of the market yesterday.
The Medical Services industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 96, which puts it in the top 40% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
Jim Cramer used his July 9, 2026 CNBC Stop Trading segment to plant a flag on managed care, framing CVS Health (NYSE:CVS | CVS Price Prediction) as the consolidation winner in a sector where insurers are finally getting paid for the risks they underwrite. RBC raised its price target on CVS Health, and Cramer connected that call to a broader thesis: with rivals shrinking and premiums climbing, the operators still standing have real pricing power.
“The real bull market here has been for the last month the UNH managed care insurance business,” Cramer said. He added, “We had Walgreens basically disappearing. We had Rite Aid disappearing. We have CVS, CVS redoing the front of the store and CVS doing a terrific job with Aetna.” Cramer expected meaningful pricing power to return: “The price increases in DRAM and price increases in health insurance are going to be double-digit.”
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Cramer Says CVS Is the Biggest Winner From Industry Consolidation The retail pharmacy shakeout has been a big tailwind for CVS. With Walgreens and Rite Aid stepping back, CVS captures more front-of-store foot traffic and prescriptions, flowing straight into an insurance and pharmacy benefit engine that just had its best quarter in years.
In Q1 2026, CVS posted adjusted EPS of $2.57 versus a $2.21 consensus on revenue of $100.43 billion. The Aetna-anchored Health Care Benefits segment saw adjusted operating income climb 52.6% year over year to $3.04 billion, while the medical benefit ratio improved to 84.6% from 87.3%. Management raised full-year adjusted EPS guidance to $7.30-$7.50 and lifted the operating cash flow target to at least $9.5 billion.
CVS shares are up 7.61% over the past month and 61.69% over the past year, trading around $104.72. The average analyst price target sits around $107.73, with 24 buy or strong buy ratings against just four holds. The stock’s forward P/E is about 14x, which still represents a discount to the group despite the run.
UnitedHealth Shows Why Pricing Power Is Returning UnitedHealth Group (NYSE:UNH) is the clearest evidence that Cramer’s double-digit thesis holds. Management explicitly cited “repricing across all lines of business in response to elevated but in-line cost trends” as the driver of Q1 2026 margin expansion. The medical cost ratio improved 90 basis points to 83.9%, and adjusted EPS came in at $7.23 versus a $6.61 consensus. Full-year adjusted EPS guidance was raised to greater than $18.25.
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UNH is willingly shedding members. Guidance calls for UnitedHealthcare enrollment of 46.9 to 47.5 million, down from 49.8 million in 2025, as the company exits unprofitable contracts. Shares are up 5.27% in the past month and 42.03% over the past year. Polymarket traders currently price in a 71% probability that UNH will beat its next quarterly earnings report, due July 16.
Humana Is Benefiting From Better Medicare Economics Humana (NYSE:HUM) rounds out the trio. Q1 2026 revenue jumped 23.5% year over year to $39.65 billion, with individual Medicare Advantage membership up roughly 1.14 million, or 22% year to date. The insurance segment benefit ratio landed at 89.4%, favorable to guidance. Humana shares have led the group over the past month, rising 11.58%, and are up 55.89% year to date.
FY2026 adjusted EPS guidance of at least $9.00 steps down from the prior year’s $17.14, reflecting the bonus-payment reset. Cramer’s argument is that improved CMS benchmark funding and IRA-driven Part D subsidies could pull the sector back toward equilibrium faster than bears expect.
What to Watch Next Cramer’s thesis ultimately comes down to pricing power. As weaker competitors shrink or disappear and insurers reprice policies to reflect higher healthcare costs, the industry’s earnings outlook appears far healthier than it did a year ago.
The next major test arrives with UnitedHealth’s earnings on July 16, followed by updates from CVS and Humana later in the quarter. Investors will be watching whether improving medical cost ratios and higher premiums continue translating into stronger margins across the sector.
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CVS Health (CVS - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.
Shares of this drugstore chain and pharmacy benefits manager have returned +7.5% over the past month versus the Zacks S&P 500 composite's +1.6% change. The Zacks Medical Services industry, to which CVS Health belongs, has gained 9.4% over this period. Now the key question is: Where could the stock be headed in the near term?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Earnings Estimate RevisionsHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current quarter, CVS Health is expected to post earnings of $1.86 per share, indicating a change of +2.8% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.
For the current fiscal year, the consensus earnings estimate of $7.44 points to a change of +10.2% from the prior year. Over the last 30 days, this estimate has remained unchanged.
For the next fiscal year, the consensus earnings estimate of $8.37 indicates a change of +12.5% from what CVS Health is expected to report a year ago. Over the past month, the estimate has remained unchanged.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for CVS Health.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue GrowthEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
In the case of CVS Health, the consensus sales estimate of $100.18 billion for the current quarter points to a year-over-year change of +1.3%. The $409 billion and $425.13 billion estimates for the current and next fiscal years indicate changes of +1.7% and +3.9%, respectively.
Last Reported Results and Surprise HistoryCVS Health reported revenues of $100.43 billion in the last reported quarter, representing a year-over-year change of +6.2%. EPS of $2.57 for the same period compares with $2.25 a year ago.
Compared to the Zacks Consensus Estimate of $94.38 billion, the reported revenues represent a surprise of +6.41%. The EPS surprise was +16.29%.
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 #2 does suggest that it may outperform the broader market in the near term.
The S&P 500 keeps climbing, up nearly 9% year to date, and yet a handful of large-cap dividend payers are trading like the bull market forgot they exist. That is exactly where opportunity hides in July. If you have $1,000 to put to work, three NYSE-listed names stand out on valuation, cash flow, and payout durability. Each carries a forward earnings multiple well below the broader market, each throws off real income, and each has a specific catalyst that could re-rate the stock over the next 12 to 18 months.
The premise is simple. When investors crowd into AI and momentum, cash-generative businesses get orphaned. That is the setup here.
Pfizer (NYSE: PFE) Pfizer (NYSE:PFE | PFE Price Prediction) is the cleanest “absurdly cheap” name on this list. Shares trade around $24 with a forward P/E of 8, roughly a third of the S&P 500’s multiple. The trailing dividend yield sits at 7.1%, backed by a 43-cent quarterly payout that has been paid consistently through 2026, with the next ex-dividend date on July 24, and payment on Sept. 1.
The bull case is that COVID revenue has already normalized and the growth engine is now new products. Q1 2026 revenue came in at $14.45 billion, up 5.4% year over year, with launched and acquired products growing 22% operationally. Padcev rose 39% and Nurtec ODT/Vydura jumped 41%. The Vyndamax patent settlement extending US exclusivity to June 2031 pushes out a major revenue cliff, and management reaffirmed FY2026 adjusted EPS guidance of $2.80 to $3.00. CEO Albert Bourla said Pfizer is “off to a strong start in 2026…positioned to lead” in oncology and obesity.
Risk: Legacy COVID franchises are still in free fall, with Comirnaty down 59% and Paxlovid down 63%, and management flagged a $1.5 billion loss-of-exclusivity headwind in 2026. Analysts still see upside, with a consensus target of $29.15.
CVS Health (NYSE: CVS) CVS Health (NYSE:CVS) is a different kind of cheap: a turnaround that is already working, but that’s still priced like it isn’t. Shares changed hands at $104.81, up nearly 57% over the past year, yet the forward P/E is still only 14, well under the S&P 500. Against management’s raised FY2026 adjusted EPS guide of $7.30 to $7.50, that math looks fair even after the run.
Q1 2026 was the proof point. Revenue reached $100.43 billion, up 6.2% year over year, and adjusted EPS of $2.57 beat the $2.21 consensus by 16.47%. The Health Care Benefits segment, the one that scared investors two years ago, delivered adjusted operating income of $3.04B, up 52.6%, with the medical benefit ratio improving to 84.6% from 87.3%. Full-year revenue guidance was raised to at least $405B with operating cash flow of $9.5 billion or more. CEO David Joyner pointed to “strong execution across our enterprise”, serving nearly 185 million people.
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Yield here is thinner at 2.54%, so this is more about earnings recovery than income. Risks include elevated medical cost trends, pharmacy reimbursement pressure, and the Omnicare Chapter 11 filing in September 2025. Still, 24 of 28 analysts rate CVS a Buy or a Strong Buy.
AT&T (NYSE: T) AT&T (NYSE:T) is the pure income idea. At $21.24, the stock is down nearly 14% year to date, and that pullback has pushed the yield to 5.23% on the 27-cent quarterly payout that has held steady for at least eight consecutive quarters. The forward P/E of 9 is again a fraction of the market. The next ex-dividend date is July 10.
The story is convergence. Q1 2026 revenue was $31.51 billion, up 2.9%, with 584,000 internet net adds, the best first quarter ever, and 294,000 postpaid phone net adds at churn of 0.89%. Advanced home internet revenue climbed 27.3% to $2.80 billion. Management guided FY2026 adjusted EPS of $2.25 to $2.35, free cash flow of $18 billion or more, and committed to more than $45 billion in shareholder returns through 2028, including roughly $8 billion of buybacks in 2026. CEO John Stankey called it the “best first quarter ever for Advanced Connectivity internet customer net additions”.
Risk: The balance sheet. Total debt is $138.4 billion, and net leverage will rise toward 3.2x post-EchoStar. Reddit sentiment reflected the anxiety, with wallstreetbets activity turning bearish in late June (scores of 33–38) before neutralizing in early July. Analysts still see upside to $30.24.
The Setup for July Three names, three flavors of cheap. Pfizer offers the highest yield and the biggest valuation gap. CVS offers the strongest earnings momentum against a still-modest multiple. AT&T offers durable free cash flow and a covered payout in a market that keeps paying up for growth. Split $1,000 across all three and you get income, optionality, and a starting valuation that requires very little to go right.
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Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.
The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.
Zacks Premium includes access to the Zacks Style Scores as well.
What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best 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 ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight 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 The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.94% 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.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure 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.
A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall 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 #2 (Buy) 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 7.5% over the past four weeks.
Five analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.12 to $7.44 per share. CVS boasts an average earnings surprise of +16.8%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, CVS should be on investors' short list.
Momentum investing revolves around the idea of following a stock's recent trend in either direction. In "long context," investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.
Even though momentum is a popular stock characteristic, it can be tough to define. Debate surrounding which are the best and worst metrics to focus on is lengthy, but the Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.
Below, we take a look at CVS Health (CVS - Free Report) , a company that currently holds a Momentum Style Score of B. We also talk about price change and earnings estimate revisions, two of the main aspects of the Momentum Style Score.
It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. CVS Health currently has a Zacks Rank of #2 (Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of "A or B" outperform the market over the following one-month period.
You can see the current list of Zacks #1 Rank Stocks here >>>
Set to Beat the Market? In order to see if CVS is a promising momentum pick, let's examine some Momentum Style elements to see if this drugstore chain and pharmacy benefits manager holds up.
A good momentum benchmark for a stock is to look at its short-term price activity, as this can reflect both current interest and if buyers or sellers currently have the upper hand. It is also useful to compare a security to its industry, as this can help investors pinpoint the top companies in a particular area.
For CVS, shares are up 0.36% over the past week while the Zacks Medical Services industry is up 1.95% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 9.16% compares favorably with the industry's 7.4% performance as well.
While any stock can see its price increase, it takes a real winner to consistently beat the market. That is why looking at longer term price metrics -- such as performance over the past three months or year -- can be useful as well. Over the past quarter, shares of CVS Health have risen 32.01%, and are up 55.3% in the last year. On the other hand, the S&P 500 has only moved 13.88% and 20.45%, respectively.
Investors should also pay attention to CVS's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. CVS is currently averaging 7,660,457 shares for the last 20 days.
Earnings OutlookThe Zacks Momentum Style Score encompasses many things, including estimate revisions and a stock's price movement. Investors should note that earnings estimates are also significant to the Zacks Rank, and a nice path here can be promising. We have recently been noticing this with CVS.
Over the past two months, 12 earnings estimates moved higher compared to none lower for the full year. These revisions helped boost CVS's consensus estimate, increasing from $7.14 to $7.44 in the past 60 days. Looking at the next fiscal year, 11 estimates have moved upwards while there have been no downward revisions in the same time period.
Bottom LineGiven these factors, it shouldn't be surprising that CVS is a #2 (Buy) stock and boasts a Momentum Score of B. If you're looking for a fresh pick that's set to soar in the near-term, make sure to keep CVS Health on your short list.
CVS Health Corporation has outperformed peers, overcoming industry headwinds through effective management and strategic execution. CVS delivered a Q1 beat-and-raise, expects margin expansion in 2026, and projects low-double-digit investor returns. While Health Services and Insurance segments anticipate mid-single-digit growth, retail is set for gradual decline but with margin improvements.
Resources Investor Relations Journalists Agencies Client Login Send a Release News Products Contact , /PRNewswire/ -- CVS Health® (NYSE: CVS) will hold a conference call with analysts and investors on Wednesday, August 5, 2026, at 8:00 a.m. ET to discuss second quarter 2026 financial results.
An audio webcast of the event will be broadcast simultaneously on the Investor Relations portion of the CVS Health website at investors.cvshealth.com where it will be archived for a period of one year.
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 March 31, 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 88 million plan members. The Company also serves an estimated more than 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
[email protected]
Investor contact
Larry McGrath
800-201-0938
[email protected]
CVS Health: Managing Services and Revenue ShiftsCVS Health (CVS 0.09%) primarily generates revenue by offering health insurance, managing pharmacy benefit programs, and operating retail pharmacies across the country.
It received court approval to sell its Omnicare business to GenieRx, while it reported an approximately 3% net income margin for the quarter ended March 31, 2026.
UnitedHealth: Steady Scale and Operational AdjustmentsUnitedHealth (UNH 0.28%) provides health benefit plans for employers and individuals while delivering direct medical care and pharmacy management services.
It announced a phased reduction of prior authorization requirements for rural providers, and it generated an approximately 6% net income margin for the quarter ended March 31, 2026.
Why Revenue Matters for Retail InvestorsRevenue serves as a straightforward measure of total sales volume before any expenses are deducted. This metric helps investors measure a company’s overall size, market footprint, and long-term trajectory.
Quarterly Revenue for CVS Health and UnitedHealthQuarter (Period End)CVS Health RevenueUnitedHealth RevenueQ2 2024 (June 2024)$91.2 billion$98.9 billionQ3 2024 (Sept. 2024)$95.4 billion$100.8 billionQ4 2024 (Dec. 2024)$97.7 billion$100.8 billionQ1 2025 (March 2025)$94.6 billion$109.6 billionQ2 2025 (June 2025)$98.9 billion$111.6 billionQ3 2025 (Sept. 2025)$102.9 billion$113.2 billionQ4 2025 (Dec. 2025)$105.7 billion$113.2 billionQ1 2026 (March 2026)$100.4 billion$111.7 billionData source: Company filings. Data as of June 23, 2026.
Foolish TakeIn comparing the revenue trends for CVS and UnitedHealth, it’s important to note that, while they operate in the healthcare sector, their business models are different. CVS relies substantially on retail sales through its 9,000 pharmacy locations. This segment produced $32 billion of the company’s $100.4 billion in first-quarter revenue. As is common for the retail sector, CVS sees its largest sales in the fourth quarter.
UnitedHealth concentrates on its health system comprised of clinics and health insurance coverage. It is exiting its non-U.S. businesses to focus on its core operations. Its year-over-year revenue growth is not as strong as CVS. In Q1, UnitedHealth’s $111.7 billion was a 2% increase over 2025.
CVS boasts the more robust sales growth. Its Q1 revenue represented a 6% year-over-year jump. It raised its full-year guidance, and UnitedHealth did as well, indicating both are anticipating a strong year ahead, and making them promising investments in the healthcare industry.
Robert Izquierdo has positions in CVS Health and UnitedHealth Group. The Motley Fool recommends CVS Health and UnitedHealth Group. The Motley Fool has a disclosure policy.
Key Takeaways ADM leads five non-AI S&P 500 stocks that gained more than 30% in the first half of 2026.CASY is backed by resilient sales, fuel strength and the Fikes/CEFCO acquisition supporting growth.CVS joins DVA and BEN among picks highlighted for favorable earnings outlooks and business momentum. The S&P 500 Index – Wall Street’s most observed equity benchmark – finished the first half of 2026 on a solid note, similar to the past three years. The benchmark advanced 9.6% during this period, mostly owing to an astonishing rally of several artificial intelligence (AI)-centric stocks.
A handful of stocks from the S&P 500 stable — not related to either the AI application developer or infrastructure manufacturer space — have also jumped in the same period. Here, we have identified five non-AI S&P 500 stocks that have provided more than 30% returns in first-quarter 2026. Their current favorable Zacks Rank indicates more fire power to be unleashed in the second half.
The stocks are: Archer-Daniels-Midland Co. (ADM - Free Report) , Casey's General Stores Inc. (CASY - Free Report) , DaVita Inc. (DVA - Free Report) , CVS Health Corp. (CVS - Free Report) and Franklin Resources Inc. (BEN - Free Report) . Each of our picks currently carries either a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The chart below shows the price performance of our five picks year to date.
Image Source: Zacks Investment Research
Archer-Daniels-Midland Co.Zacks Rank #1 Archer-Daniels-Midland is benefiting from a rebound in its Nutrition segment. Human Nutrition is gaining traction, with the Flavors portfolio benefiting from solid North American demand, international customer wins and improved margins from a favorable mix and disciplined pricing.
ADM continues to advance its Optimize, Drive and Grow pillars, enhancing productivity, accelerating cost savings, expanding BioSolutions and leveraging digital tools to unlock margin opportunities and strengthen customer reach.
ADM is actively managing productivity and innovation as well as aligning work to the interconnected trends in food security, health and wellbeing. The company is well-positioned for sustainable long-term profit growth across new avenues.
ADM has been creating additional margin opportunities, opening up channels to customers, advancing digital technologies in areas like farmer needs, the extension of Regen Act programs and partnerships, and the growth of its BioSolutions platform.
Archer-Daniels-Midland has an expected revenue and earnings growth rate of 6.5% and 36.2%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 2.9% over the last seven days.
Casey's General Stores Inc.Zacks Rank #1 Casey's General Stores shows strong growth momentum, supported by resilient inside sales, driven by prepared foods, beverages and high-margin grocery categories. Effective pricing, product innovation and a favorable product mix continue to enhance CASY’s margins and customer traffic.
We anticipate the inside gross margin to expand 60 basis points year over year in fiscal 2026. CASY’s fuel segment is outperforming industry trends, strengthening market share and profitability despite price fluctuations.
The Fikes/CEFCO acquisition is boosting scale, operational efficiency and long-term growth potential, supported by integration synergies. CASY’s strong cash flow generation and stable financial position provide flexibility for investments, expansion, and shareholder returns, reinforcing confidence in its sustained growth trajectory and overall business strength.
Casey's General Stores has an expected revenue and earnings growth rate of 16.6% and 9.9%, respectively, for the current year (ending April 2027). The Zacks Consensus Estimate for the current year’s earnings has improved 2.9% over the last 30 days.
DaVita Inc.Zacks Rank #1 DaVita continues to strengthen its position as a leading U.S. dialysis provider. DVA’s U.S. dialysis segment remains the primary earnings driver, supported by steady reimbursement and cost control.
DVA also highlighted continued momentum within the Integrated Kidney Care during first-quarter 2026, with year-over-year improvements across key Comprehensive Kidney Care Contracting program performance metrics, including gross savings rates, quality scores and high-performing status. A strong solvency position of DVA is an added plus.
DaVita has an expected revenue and earnings growth rate of 4.8% and 39.8%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 6.4% over the last 60 days.
CVS Health Corp.Zacks Rank #2 CVS Health has benefited from by improved results at Aetna. Sustained achievement in CMS Star Ratings reflects Aetna’s strong fundamentals and focus on improving health outcomes for MA members.
The Health Services segment benefits from pharmacy drug mix and brand inflation. CVS is also executing against its operational plans in health care delivery to improve health care access nationwide. CVS’ retail pharmacy script share position continues to be strong.
CVS Caremark PBM is driving meaningful savings for clients and members by adapting to client needs and market dynamics. A $20-billion long-term technology investment underpins the company’s digital strategy.
CVS Health has an expected revenue and earnings growth rate of 1.7% and 10.2%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 0.4% over the last 30 days.
Franklin Resources Inc.Zacks Rank #1 Franklin Resources’ solid distribution platform and first-mover advantage in many countries will continue to support its revenue diversification. BEN has been witnessing solid growth in AUM balance over the years. Though AUM declined in fiscal 2022 and 2025, it recorded a CAGR of 3.1% over the last five fiscal years (ending fiscal 2025).
The rising trend continued in the first six months of fiscal 2026. BEN’s growth was supported by strong inflows in alternatives and multi-asset categories. BEN’s efforts to diversify its business into asset classes that are seeing growing client demand, like alternative asset classes, are expected to propel AUM growth.
Franklin Resources has an expected revenue and earnings growth rate of 5.4% and 24.8%, respectively, for the current year (ending September 2026). The Zacks Consensus Estimate for the current year’s earnings has improved 1.1% over the last 30 days.
@Theotrade 's Don Kaufman takes us through today's Big 3 and offers example trades for his picks. He first highlights CVS Health (CVS), saying the company's upside-driving potential is worth hoping on the train.
If you are looking for a stock that has a solid history of beating earnings estimates and is in a good position to maintain the trend in its next quarterly report, you should consider CVS Health (CVS - Free Report) . This company, which is in the Zacks Medical Services industry, shows potential for another earnings beat.
When looking at the last two reports, this drugstore chain and pharmacy benefits manager has recorded a strong streak of surpassing earnings estimates. The company has topped estimates by 13.20%, on average, in the last two quarters.
For the last reported quarter, CVS Health came out with earnings of $2.57 per share versus the Zacks Consensus Estimate of $2.21 per share, representing a surprise of 16.29%. For the previous quarter, the company was expected to post earnings of $0.99 per share and it actually produced earnings of $1.09 per share, delivering a surprise of 10.10%.
Price and EPS Surprise
Thanks in part to this history, there has been a favorable change in earnings estimates for CVS Health lately. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the stock is positive, which is a great indicator of an earnings beat, particularly when combined with its solid Zacks Rank.
Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
CVS Health currently has an Earnings ESP of +1.36%, which suggests that analysts have recently become bullish on the company's earnings prospects. This positive Earnings ESP when combined with the stock's Zacks Rank #2 (Buy) indicates that another beat is possibly around the corner.
Investors should note, however, that a negative Earnings ESP reading is not indicative of an earnings miss, but a negative value does reduce the predictive power of this metric.
Many companies end up beating the consensus EPS estimate, but that may not be the sole basis for their stocks moving higher. On the other hand, some stocks may hold their ground even if they end up missing the consensus estimate.
Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
HomeInvestingStocksMark HulbertMark HulbertMany portfolio experts are wrong about what drives value outperformance. This single metric explains why.June 29, 2026, 4:43 p.m. ET
Photo: Getty Images/iStockphotoValue stocks will continue to beat growth stocks so long as U.S. inflation remains elevated.
This relationship between inflation and value stocks’ outperformance is often overlooked. Many investment experts mistakenly believe that a strong economy, not inflation, is the key to value stocks beating growth stocks. But they’re wrong: Assuming inflation stays constant, robust economic growth helps growth stocks just as much as, if not more than, value stocks.
Shares of CVS Health (CVS - Free Report) have been strong performers lately, with the stock up 14.7% over the past month. The stock hit a new 52-week high of $106.15 in the previous session. CVS Health has gained 31.5% since the start of the year compared to the 1.4% gain for the Zacks Medical sector and the -1.8% return for the Zacks Medical Services industry.
What's Driving the Outperformance?The stock has an impressive record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on May 6, 2026, CVS Health reported EPS of $2.57 versus consensus estimate of $2.21 while it beat the consensus revenue estimate by 6.41%.
For the current fiscal year, CVS Health is expected to post earnings of $7.44 per share on $409 in revenues. This represents a 10.22% change in EPS on a 1.72% change in revenues. For the next fiscal year, the company is expected to earn $8.37 per share on $425.13 in revenues. This represents a year-over-year change of 12.5% and 3.94%, respectively.
Valuation MetricsWhile CVS Health has moved to its 52-week high in the recent past, investors need to be asking, what is next for the company? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
CVS Health has a Value Score of A. The stock's Growth and Momentum Scores are C and F, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 14X current fiscal year EPS estimates, which is not in-line with the peer industry average of 15.7X. On a trailing cash flow basis, the stock currently trades at 7X versus its peer group's average of 10X. Additionally, the stock has a PEG ratio of 1.02. This is good enough to put the company in the top echelon of all stocks we cover from a value perspective, making CVS Health an interesting choice for value investors.
Zacks RankWe also need to look at the Zacks Rank for the stock, as this is even more important than the company's VGM Score. Fortunately, CVS Health currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if CVS Health fits the bill. Thus, it seems as though CVS Health shares could still be poised for more gains ahead.
How Does CVS Stack Up to the Competition?Shares of CVS have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Concentra Group Holdings Parent, Inc. (CON - Free Report) . CON has a Zacks Rank of #2 (Buy) and a Value Score of B, a Growth Score of A, and a Momentum Score of C.
Earnings were strong last quarter. Concentra Group Holdings Parent, Inc. beat our consensus estimate by 14.29%, and for the current fiscal year, CON is expected to post earnings of $1.53 per share on revenue of $2.33 billion.
Shares of Concentra Group Holdings Parent, Inc. have gained 21.4% over the past month, and currently trade at a forward P/E of 19.72X and a P/CF of 15.12X.
The Medical Services industry is in the top 40% of all the industries we have in our universe, so it looks like there are some nice tailwinds for CVS and CON, even beyond their own solid fundamental situation.
Joel Greenblatt’s Magic Formula, popularized in The Little Book That Beats the Market, ranks stocks on two factors: earnings yield (operating earnings divided by enterprise value) and return on capital (how efficiently a business converts invested dollars into profits). For retirement investors, Magic Formula scores are only the starting point. Income reliability, business durability, and volatility matter equally. A bargain-screened name can still be wrong for a retiree if cash flows swing with commodity cycles or if its multiple assumes growth that may not arrive.
Below is a countdown of three candidates, ranked from least to most appropriate for a retirement-focused portfolio.
3. Qualcomm: Quality at a Quality Price Qualcomm (NASDAQ: QCOM | QCOM Price Prediction) is the classic Magic Formula quality stock: high gross margins, high returns on equity, and a fortress licensing business. Trailing return on equity is near 36.1%, operating margin around 22.1%, and EV/EBITDA at 14.7. Q2 FY26 delivered non-GAAP EPS of $2.65 on revenue of $10.599 billion, with record Automotive revenue of $1.326 billion, up 38% year over year.
The retirement problem is volatility and yield. Shares fell 16.2% in the past week and 23.9% in the past month, with a beta of 1.596. The dividend yield is just 1.9%, and handset revenue contracted 13% last quarter on memory supply constraints and China exposure. A great business, but not a retiree’s anchor holding.
2. Valero Energy: Cash Machine, Cyclical Risk Valero Energy (NYSE: VLO) is where the Magic Formula screen lights up brightest. A forward P/E of 9, EV/EBITDA of 8.7, and return on equity of 15.9% combine to signal strong earnings yield and respectable capital efficiency. Q1 2026 EPS hit $4.22 against a $3.16 consensus, refining margins expanded to $14.90 per barrel, and management returned $938 million to shareholders while raising the quarterly dividend 6% to $1.20.
Shares are up 89.4% over the past year. That run is the catch. Refiner earnings swing with crack spreads, the Brent-WTI differential expanded to $5.94 per barrel from $3.43 per barrel, and California exposure produced a $123 million West Coast loss last quarter. The 1.9% yield is well covered, but earnings are not predictable enough for a retiree’s largest position.
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1. CVS Health: The Retiree’s Magic Formula Pick CVS Health (NYSE: CVS) combines Aetna insurance, the Caremark PBM, and roughly 9,000 retail pharmacies into a defensive, recession-resistant cash-generating enterprise. Forward P/E is just 14, beta is 0.623, and the dividend yields 2.6% on an annualized payout of $2.66. The dividend has been paid quarterly for more than 27 years without interruption.
The turnaround is showing in the numbers. Q1 2026 adjusted EPS came in at $2.57 against a $2.21 estimate, the fourth straight beat, with operating income up 38.71% year over year and Aetna’s adjusted operating income surging 52.6% to $3.04 billion as the medical benefit ratio improved to 84.6%. Management raised full-year adjusted EPS guidance to $7.30 to $7.50 and operating cash flow guidance to at least $9.5 billion. CEO David Joyner described the company as serving “nearly 185 million people” with strong enterprise execution. Shares have climbed 53.1% over the past year to $104.34.
Risks remain: pharmacy reimbursement pressure, elevated medical cost trends, lingering legacy litigation, and a goodwill-heavy balance sheet from the Aetna deal that drags reported return on capital. Even with those headwinds, the combination of a defensive healthcare footprint, low-beta shares, a multi-decade dividend record, and a forward earnings yield in the low-to-mid teens is the cleanest fit for someone funding retirement withdrawals.
What This Means for Retirement Portfolios The Magic Formula is a starting point, not a verdict. Qualcomm offers the best business quality but the thinnest yield and highest volatility. Valero offers the loudest cheapness signal and a generous, growing payout, yet its earnings ride the refining cycle. CVS Health pairs a reasonable multiple with a defensive franchise, an improving Aetna margin story, and a dividend that has weathered every market cycle since the late 1990s. For a retirement investor weighing these three through a Greenblatt lens, CVS best balances cheapness, quality, and the income reliability that funds a withdrawal plan.
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The market for weight-loss drugs, led by GLP-1 medicines like Wegovy, is on a rapid northbound trajectory. One good way to capitalize on it is to invest in pharmaceutical companies that currently lead this niche or have the potential to establish a strong foothold. However, it isn't just drugmakers that may profit from the rapid rise of the GLP-1 category. Other companies across the healthcare delivery funnel could also see increased sales and profits thanks to this trend, and CVS Health (CVS 0.26%), a leading pharmacy chain, is one of them. The company recently announced a GLP-1 program that had Wall Street buzzing, as some analysts think the move makes the stock more attractive. Should investors consider buying CVS Health's shares right now?
Image source: The Motley Fool.
Making GLP-1 medicines more accessible Weight-loss drugs haven't been easy for patients to obtain. One of the main reasons for that is cost. GLP-1 medicines are expensive. Even with recent price drops, they can cost several hundred dollars per month -- a meaningful hit to many patients' budgets. And since insurance coverage for these therapies for weight loss has been spotty at best, many are left having to forego them, even when they need them. Further, some physicians have been somewhat hesitant to prescribe GLP-1s to patients due to coverage issues and other factors. And even when patients start taking these medicines, a meaningful number experience uncomfortable side effects that make their weight loss journeys challenging.
Enter CVS Health. The company recently announced a program to help patients through all this, available at its more than 9,000 pharmacies across the U.S. CVS Health will offer virtual visits priced at $49 with clinicians who can evaluate patients and prescribe GLP-1 medicines. The drugs will cost as little as $25 per month for patients with insurance coverage, $50 per month for eligible Medicare patients, or will start at $149 monthly for those without insurance. The pharmacy giant will also provide one-on-one professional support and access to over-the-counter products to help people manage side effects.
This initiative could attract many patients to the company's platform and help boost revenue in its retail pharmacy division. Allen Lutz, an analyst at Bank of America (BAC 0.53%), recently raised his price target on the stock to $110 from $100 following these developments. The company's shares are currently trading at about $104 each, so the new price target implies a modest upside from current levels.
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Is CVS Health stock a buy? CVS Health has performed well over the past 18 months, after several years of challenges. The company's financial results have improved as it has made significant headway in containing costs within its Medicare Advantage division, where rising expenses were eroding its profits and margins. In the first quarter, CVS Health's revenue grew by a healthy 6% year over year to $100.4 billion, while its adjusted earnings per share rose 14% to $2.57. CVS Health also increased its guidance for the full fiscal year 2026.
The healthcare giant's ability to successfully weather the storm it faced in recent years and bounce back speaks volumes about its resilience as a business. And on top of that, CVS Health also has outstanding long-term prospects. The company's well-known brand name, extensive network of retail locations, and diversified healthcare business spanning pharmacy services, insurance, primary care, and more enable it to remain with patients throughout much of their care journey.
That's exactly what it is doing with its new GLP-1 program: offering consultations, medicines, and insurance coverage for eligible patients, as well as one-on-one follow-up with professionals and over-the-counter medications to help manage side effects. The diversified nature of CVS Health's business grants the company a strong competitive advantage and may help it capitalize on the healthcare sector's expansion over the next few decades, especially as the world's population ages.
Lastly, CVS Health is also a solid dividend stock, with a forward yield currently of 2.5%, compared to the S&P 500's average of 1.1%. The company has increased its payouts by 56.5% over the past decade. All these are good reasons why it's worth it for long-term income seekers to purchase CVS Health's shares.
Local organizations receive Hometown Fund support to expand access to health care, food, housing and essential services
, /PRNewswire/ -- The CVS Health Foundation is investing $1 million in grants through its Hometown Fund to 20 organizations that are making a difference for Rhode Islanders every day. This year, Hometown Fund grants will support local nonprofits working to increase access to health care, address food insecurity, expand availability of stable housing and improve community health across the state.
"We're investing in Rhode Island nonprofits that are meeting people where they are – helping individuals and families access health care, food, stable housing and the support they need to stay healthy," said Jenny McColloch, president of the CVS Health Foundation. "Through our Hometown Fund, we focus on communities our colleagues call home, supporting organizations that are addressing the everyday factors that shape wellbeing and make a real difference across the state."
Aldersbridge Communities, a 2026 CVS Health Foundation Hometown Fund grant recipient, is making a meaningful impact for older adults across Rhode Island by connecting affordable housing with essential health care services. Offering a continuum of care, from independent, assisted living and memory care assisted living, Aldersbridge Communities helps residents maintain their independence while receiving the support they need to stay healthy. This grant will help strengthen those services, ensuring more older adults can age with dignity, stability, and a strong sense of community.
"The support of the CVS Health Foundation allows us to expand our work to make compassionate, innovative, inclusive and affordable elder care services available to all Rhode Islanders," said Elise Strom, chief development officer of Aldersbridge Communities. "This grant will strengthen our strategic planning efforts, helping us develop new communities, advance environmental sustainability initiatives and build a strong foundation for the future."
From helping older adults live independently and increasing access to affordable care, to ensuring families don't have to worry about their next meal, this year's grantees reflect the strength and resilience of communities across Rhode Island. Alongside Aldersbridge Communities, additional recipients of the Hometown Fund in Rhode Island include Better Lives Rhode Island, Blackstone Health, Children and Youth Cabinet, Clinica Esperanza/Hope Clinic, Community Blessings Foundation, Federal Hill House Association, Good Neighbors, Inspiring Minds, Lucy's Hearth, Mae Organization, Meals On Wheels RI, Northern RI Food Pantry, OpenDoors, Rhode Island Public Health Institute, Shri Service Corps, Southside Community Land Trust, The Jonnycake Center, Westerly-Area-Rest-Meals (WARM), and Youth Pride.
The Hometown Fund supports local nonprofits across Rhode Island and in the Hartford, Connecticut area — two key communities where CVS Health colleagues live and work. Through this annual grant program, the Foundation provides general operating support to organizations that are making a difference by expanding access to health care and addressing the everyday factors that shape people's wellbeing, like nutritious food and housing.
The CVS Health Foundation is announcing this year's Hometown Fund grantees as part of its ongoing commitment to making a meaningful impact in Rhode Island, where the company is headquartered. In 2025, CVS Health and the CVS Health Foundation provided more than $2.64 million in charitable giving across the state, along with significant investments in affordable housing and workforce development initiatives that help create pathways to long-term stability. Through programs like Project Health, CVS Health delivered free health screenings to nearly 1,200 Rhode Islanders last year, while colleague volunteers contributed thousands of hours to support local communities. Together, these efforts reflect a comprehensive approach to improving community health across the Ocean State.
About CVS Health Foundation
The CVS Health Foundation has a proud history of supporting local communities across various regions throughout the United States. The Foundation is dedicated to uniting communities to address health challenges in collaboration with a wide range of nonprofit grantees. The Foundation collaborates on programs that enhance health outcomes, with focus areas including mental well-being, healthy aging, maternal health, health impacts from extreme weather and chronic conditions like cardiovascular disease and diabetes. It also helps lay the groundwork for a healthier future by assisting organizations that address food security and promote educational opportunities. Additionally, the CVS Health Foundation supports CVS Health colleagues by backing the causes that are most meaningful to them through its Matching Gifts, Volunteer Challenge Grants and Children of Colleague Scholarship programs.
Media contact
Courtney Tavener
401-712-3698
[email protected]
Local organizations receive Hometown Fund support to expand access to health care, food, housing and essential services
, /PRNewswire/ -- The CVS Health Foundation is investing $1 million in grants through its Hometown Fund to 20 organizations that are making a difference for the Greater Hartford area every day. This year, Hometown Fund grants will support local nonprofits working to increase access to health care, address food insecurity, expand availability of stable housing and increase access to critical community services across the Greater Hartford area.
"We're investing in Hartford nonprofits that are meeting people where they are – helping individuals and families access health care, food, stable housing and the support they need to stay healthy," said Jenny McColloch, president of the CVS Health Foundation. "Through our Hometown Fund, we focus on communities our colleagues call home, supporting organizations that are addressing the everyday factors that shape wellbeing and making a difference in the Greater Hartford area."
ImmaCare, one of this year's CVS Health Foundation Hometown Fund grant recipients, is helping transform lives in Hartford by supporting individuals experiencing homelessness with more than just a place to stay. Through emergency shelter, housing assistance, and wraparound services that address mental health and substance use, ImmaCare is tackling the root causes of homelessness. This funding will help expand access to critical support, empowering more individuals to improve their health, and build a path toward long-term stability and independence.
"ImmaCare is honored to receive a Hometown Fund grant from the CVS Health Foundation," said Teresa A. Wierbicki, director of strategic development at ImmaCare. "Flexible support like this is invaluable, allowing us to invest in strategic initiatives that strengthen our services, expand pathways to stable housing and address the increasing challenges of homelessness and housing insecurity. Together, we are creating lasting opportunities for individuals to rebuild their lives."
From helping older adults live independently and accessing health care to ensure families don't have to worry about their next meal, this year's grantees reflect the strength and resilience of communities across the Greater Hartford area and their impact on community health. Alongside ImmaCare, additional recipients of the Hometown Fund in Greater Hartford include Center for Children's Advocacy, Center for Latino Progress, Chrysalis Center, Easterseals Capital Region & Eastern Connecticut, Enfield Loaves & Fishes, Forge City Works, Friendship Service Center, Hartford Health Initiative, House of Bread, Journey Home, KNOX, Malta House of Care, Mercy Housing and Shelter Corporation, Northeast Neighborhood Partners, Prudence Crandall Center, Special Olympics Connecticut, St. Vincent Depaul Place Middletown, Urban League of Greater Hartford, and YWCA Hartford Region.
The Hometown Fund supports local nonprofits across Rhode Island and in the Hartford, Connecticut area — two key communities where CVS Health colleagues live and work. Through the grant program, the Foundation provides general operating support to organizations that are making a difference by expanding access to health care and addressing the everyday factors that shape people's wellbeing, like nutritious food and housing.
The CVS Health Foundation is announcing this year's Hometown Fund grantees as part of its continued commitment to strengthening community health across Connecticut. In 2025, CVS Health and the CVS Health Foundation contributed more than $2.61 million in charitable giving across the state, alongside thousands of volunteer hours from colleagues and investments in workforce development initiatives that support local career pathways. The company also provides free health screenings through its Project Health initiative, reaching hundreds of Connecticut residents last year, while continuing to work alongside community-based organizations to address critical needs such as housing, food access, and mental health services – all part of a broader effort to improve health outcomes and expand access to care statewide.
About CVS Health Foundation
The CVS Health Foundation has a proud history of supporting local communities across various regions throughout the United States. The Foundation is dedicated to uniting communities to address health challenges in collaboration with a wide range of nonprofit grantees. The Foundation collaborates on programs that enhance health outcomes, with focus areas including mental well-being, healthy aging, maternal health, health impacts from extreme weather and chronic conditions like cardiovascular disease and diabetes. It also helps lay the groundwork for a healthier future by assisting organizations that address food security and promote educational opportunities. Additionally, the CVS Health Foundation supports CVS Health colleagues by backing the causes that are most meaningful to them through its Matching Gifts, Volunteer Challenge Grants and Children of Colleague Scholarship programs.
Media contact
Courtney Tavener
401-712-3698
[email protected]
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 +12% over the past month versus the Zacks S&P 500 composite's -1.3% change. The Zacks Medical Services industry, to which CVS Health belongs, has gained 4.5% over this period. Now the key question is: Where could the stock be headed in the near term?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Revisions to Earnings EstimatesHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
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.
CVS Health is expected to post earnings of $1.86 per share for the current quarter, representing a year-over-year change of +2.8%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.2%.
For the current fiscal year, the consensus earnings estimate of $7.44 points to a change of +10.2% from the prior year. Over the last 30 days, this estimate has changed -0.1%.
For the next fiscal year, the consensus earnings estimate of $8.37 indicates a change of +12.5% from what CVS Health is expected to report a year ago. Over the past month, the estimate has changed +0.2%.
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 #2 (Buy).
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 $100.18 billion indicates a year-over-year change of +1.3%. For the current and next fiscal years, $409 billion and $425.13 billion estimates indicate +1.7% and +3.9% changes, respectively.
Last Reported Results and Surprise HistoryCVS Health reported revenues of $100.43 billion in the last reported quarter, representing a year-over-year change of +6.2%. EPS of $2.57 for the same period compares with $2.25 a year ago.
Compared to the Zacks Consensus Estimate of $94.38 billion, the reported revenues represent a surprise of +6.41%. The EPS surprise was +16.29%.
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.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty 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.
ConclusionThe 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 #2 does suggest that it may outperform the broader market in the near term.
Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the "long context," investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.
Even though momentum is a popular stock characteristic, it can be tough to define. Debate surrounding which are the best and worst metrics to focus on is lengthy, but the Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.
Below, we take a look at CVS Health (CVS - Free Report) , which currently has a Momentum Style Score of B. We also discuss some of the main drivers of the Momentum Style Score, like price change and earnings estimate revisions.
It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. CVS Health currently has a Zacks Rank of #2 (Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of "A or B" outperform the market over the following one-month period.
You can see the current list of Zacks #1 Rank Stocks here >>>
Set to Beat the Market? In order to see if CVS is a promising momentum pick, let's examine some Momentum Style elements to see if this drugstore chain and pharmacy benefits manager holds up.
Looking at a stock's short-term price activity is a great way to gauge if it has momentum, since this can reflect both the current interest in a stock and if buyers or sellers have the upper hand at the moment. It's also helpful to compare a security to its industry; this can show investors the best companies in a particular area.
For CVS, shares are up 6.29% over the past week while the Zacks Medical Services industry is flat over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 5.36% compares favorably with the industry's 0.03% performance as well.
While any stock can see its price increase, it takes a real winner to consistently beat the market. That is why looking at longer term price metrics -- such as performance over the past three months or year -- can be useful as well. Over the past quarter, shares of CVS Health have risen 38.13%, and are up 47.1% in the last year. On the other hand, the S&P 500 has only moved 13.47% and 26.67%, respectively.
Investors should also pay attention to CVS's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. CVS is currently averaging 7,967,399 shares for the last 20 days.
Earnings OutlookThe Zacks Momentum Style Score encompasses many things, including estimate revisions and a stock's price movement. Investors should note that earnings estimates are also significant to the Zacks Rank, and a nice path here can be promising. We have recently been noticing this with CVS.
Over the past two months, 12 earnings estimates moved higher compared to none lower for the full year. These revisions helped boost CVS's consensus estimate, increasing from $7.14 to $7.44 in the past 60 days. Looking at the next fiscal year, 11 estimates have moved upwards while there have been no downward revisions in the same time period.
Bottom LineTaking into account all of these elements, it should come as no surprise that CVS is a #2 (Buy) stock with a Momentum Score of B. If you've been searching for a fresh pick that's set to rise in the near-term, make sure to keep CVS Health on your short list.
New $50 monthly copay for eligible Medicare patients, one-on-one pharmacist guidance, and over-the-counter products to help manage common side effects available to support patients
MinuteClinic® expands virtual care with new weight management offering and $49 visits
, /PRNewswire/ -- As demand for GLP-1 medications continues to increase across the U.S., CVS Health® (NYSE: CVS) today announced a comprehensive approach to GLP-1 support spanning its more than 9,000 CVS Pharmacy® locations and MinuteClinic®, available virtually in nearly all states. New offerings include expanded pharmacy support designed to help patients access these treatments and stay on them, and a new $49 MinuteClinic virtual visit that connects eligible adults with licensed clinicians who can evaluate and, where clinically appropriate, prescribe GLP-1 therapy.
CVS pharmacist consulting with patient. The new approach combines lower-cost access, personalized pharmacist support, and over-the-counter products to help manage common side effects, which are three of the biggest barriers patients face when starting GLP‑1 therapy.
CVS Pharmacy offers a broad range of GLP‑1 prescription medications, including both injectable and oral options from multiple manufacturers, along with new digital resources available on CVS.com. Together with guidance from trusted neighborhood pharmacists, these tools are designed to support patients from their first dose through ongoing treatment.
"Access is only part of the equation with GLP‑1 medications. Patients also need support to stay on therapy and see results," said Sid Tenneti, Senior Vice President and Interim President, Pharmacy and Consumer Wellness. "From helping patients manage side effects to identifying ways to lower costs, our pharmacists are there every step of the way."
Lower cost access to GLP-1 medications
To help address cost concerns, CVS Pharmacy will begin participating in the Centers for Medicare & Medicaid Services (CMS) Medicare GLP‑1 Bridge program starting July 1, 2026. Through the program, which runs through December 31, 2027, eligible Medicare beneficiaries can access certain GLP‑1 medications for $50 per month, offering more predictable and affordable pricing for patients who qualify.
For those not eligible, CVS Pharmacy accepts a wide range of third-party prescription discount cards, manufacturer coupons, and manufacturer vouchers to help reduce out-of-pocket costs. At CVS Pharmacy, the out-of-pocket cost for a GLP-1 medication can be as low as $25 a month through commercial insurance with a manufacturer coupon for eligible patients, or $149 for those without insurance who utilize a manufacturer voucher for qualifying medications and doses. CVS Pharmacy is a retail pharmacy partner for NovoCare®, a program that offers discounted Wegovy® and Ozempic®, and was the first to build a streamlined NovoCare enrollment experience.
Pharmacists at the center of care
As more patients turn to GLP‑1 medications, CVS Pharmacy is emphasizing the role of its pharmacists in helping patients navigate treatment.
According to the CVS Health 2025 Rx Report, nearly half of consumers prioritize personalized care at the pharmacy, and many prefer in-person pharmacy support over digital-only options - highlighting the ongoing importance of face-to-face interactions with pharmacists. From answering questions about dosing to helping patients manage side effects and stay on track, CVS pharmacists play a critical role in supporting the overall treatment experience and are available when it is convenient for the patient.
Clinical weight loss support available at MinuteClinic
MinuteClinic is broadening its virtual care platform with the launch of a new digital health offering that connects eligible adults with licensed clinicians to evaluate their weight loss and metabolic health needs and, where clinically appropriate, prescribe FDA-approved GLP-1 medications for weight loss.
At $49 per visit with no recurring membership or monthly fee, the program is built to make a first step toward weight management straightforward and affordable. Patients begin with a virtual video visit with a licensed physician associate or nurse practitioner, who reviews their health history and weight-management goals before determining whether a GLP-1 therapy is the right fit. Those who start treatment can schedule follow-up visits as needed for dose adjustments, side-effect support, and ongoing monitoring.
The program is available in 47 states and Washington, D.C., and is designed for self-pay adults ages 18 to 64 who are overweight or living with obesity and intend to pay out of pocket for clinical weight loss services. Patients seeking weight loss or metabolic health clinical support can visit MinuteClinic.com.
Over-the-counter products to help manage side effects
Side effects remain one of the leading reasons patients discontinue GLP‑1 therapy. To help address this, CVS Pharmacy has expanded its product assortment and is highlighting CVS brand and national brand over-the-counter products to help make managing side effects easier. Pharmacists can discuss concerns and help manage side effects in collaboration with prescribers.
In select locations, dedicated product displays highlight items that can help manage common issues such as nausea and gastrointestinal discomfort, as well as products that support hydration, protein intake, and overall nutrition. These in-store curated displays, sponsored by Haleon, are designed to bring together pharmacist guidance and practical, easy-to-find products to make it simpler for patients to manage their treatment.
Customers can also select from a wide array of CVS brand products found throughout the store to help manage common GLP-1 side effects that offer the quality and value customers have come to expect from CVS Pharmacy store brands.
For more information on CVS Pharmacy's GLP‑1 support offerings, visit www.CVS.com/GLP1.
*For weight loss-related consultation only. Does not include the price of laboratory tests required.
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 March 31, 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 88 million plan members. The Company also serves an estimated more than 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
Amy Thibault
401-318-2865
[email protected]
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.
The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.
Zacks Premium also includes the Zacks Style Scores.
What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best 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 ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight 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 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.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +24% 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.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
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 #2 (Buy) 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 A, and shares are up 5.4% over the past four weeks.
12 analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.30 to $7.44 per share. CVS also boasts an average earnings surprise of +16.8%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, CVS should be on investors' short list.
CVS Health (CVS +0.27%) is pushing harder into a hot segment of the pharmacy market, and on Monday investors rewarded the company for the effort. The pharmacy retailer's stock rose 3% on the news, contrasting very favorably with the slight (0.2%) decline of the bellwether S&P 500 index.
Weight loss equals business gain That morning, before market open, CVS announced it is expanding support for GLP-1 weight-loss medications across its many U.S. pharmacies and MinuteClinics.
Image source: Getty Images.
This includes more pharmacy support to improve access to such medications for patients and help them maintain their regimens. CVS added that it has introduced a new specialty MinuteClinic virtual visit offering focused on GLP-1 prescription and administration, priced at $49 per visit.
More importantly, on July 1, CVS will begin participating in the Centers for Medicare & Medicaid Services' (CMS) Medicare GLP-1 Bridge Program, a federal discount initiative.
In the press release touting the new offerings, CVS quoted its interim president of pharmacy and consumer wellness, Sid Tenneti, as saying that "Access is only part of the equation with GLP‑1 medications. Patients also need support to stay on therapy and see results."
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Getting them to the pharmacy counter American consumers can't get enough of obesity medications, so CVS is right to bulk up its GLP-1 services. I feel that the Bridge program discount will be a particularly attractive draw for qualifying patients, and overall, this expansion will provide a lift to CVS's business. Just now, this company looks like one of the best -- if not the best -- U.S. pharmacy stock.
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool recommends CVS Health. The Motley Fool has a disclosure policy.
On June 22, 2026, CVS Health Corp CVS shares rose 3.0% to a current price of $101.30. The stock has seen considerable movement over the past year, with a 52-week range of $58.50 to $103.12.
GF Value™ verdict: The current price is $101.30, which is 30.4% above the GF Value™ estimate of $77.69.GF Score™: 76/100, indicating an above-average potential for long-term returns.Most notable signal: Insiders sold $323.7 million in stock over the last three months, showing a lack of confidence from those closest to the company. Is CVS Overvalued or Undervalued? Evaluating CVS’s current price of $101.30 against the GF Value™ of $77.69 clearly indicates that the stock is significantly overvalued, presenting a 30.4% downside risk from its current trading level. The GF Valuation label categorizes CVS as "Significantly Overvalued," highlighting concerns regarding its price relative to intrinsic value. Investors may find this overvaluation a point of caution, as it suggests that the stock may not provide a favorable risk-adjusted return in the near term.
GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates. Given the disparity between the current trading price and the GF Value™, there is a substantial margin of safety for potential downside risk. As such, there may be limited upside potential for new investments at this valuation level.
How Does CVS's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 44.6x 16.9x Forward P/E 13.6x N/A CVS's current P/E ratio of 44.6x is significantly above its 5-year median P/E of 16.9x, indicating that the stock is trading at a premium relative to its historical valuation metrics. This analysis aligns with the GF Value™ verdict, reinforcing the conclusion that CVS is currently overvalued compared to its historical performance.
What Does CVS's GF Score™ Tell Us? Metric Rating GF Score™ 76 Financial Strength 5/10 Profitability 7/10 Growth 5/10 Valuation 5/10 Momentum 9/10 The GF Score™ of 76/100 reflects an above-average rating, suggesting that CVS has solid potential for long-term performance. The strongest area is Momentum, rated at 9/10, indicating recent strong price performance. However, Financial Strength and Valuation, both rated at 5/10, reveal weaknesses that may impact long-term stability and growth. Overall, while CVS shows promise in terms of profitability and momentum, its financial strength and valuation metrics warrant further scrutiny.
What Are Insiders Doing with CVS Stock? Insider activity at CVS has leaned heavily towards selling, with insiders divesting approximately $323.7 million in stock over the last three months without any notable buying. This pattern may suggest a lack of confidence in the stock's current valuation or future performance prospects. Such significant selling by insiders can often be interpreted as a bearish signal, indicating that those with the most insight into the company's operations may not view the stock as a good investment at current levels.
What This Means for Investors Based on the GF Value™ assessment, CVS Health Corp CVS is currently overvalued. Investors should be cautious, as the price significantly exceeds the intrinsic value indicated by the GF Value™, suggesting limited upside potential and considerable downside risk.
For the complete analysis, visit the CVS Health Corp CVS stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.
Frequently Asked Questions What is CVS's GF Score™?
CVS's GF Score™ is 76/100, indicating it has above-average potential for long-term returns based on key financial metrics.
Is CVS overvalued or undervalued?
CVS is currently overvalued, as its stock price of $101.30 significantly exceeds the GF Value™ estimate of $77.69.
What is CVS's P/E ratio?
CVS's P/E ratio is 44.6x, which is 164% above its 5-year median P/E of 16.9x, suggesting it is trading at a premium compared to its historical valuation.
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].
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.
The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.
It also includes access to the Zacks Style Scores.
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 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 ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.
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 +24% 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.
With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.
That's where the Style Scores come in.
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.
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 #2 (Buy) 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 13.62; value investors should take notice.
12 analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.30 to $7.44 per share. CVS boasts an average earnings surprise of +16.8%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, CVS should be on investors' short list.
CVS Health (CVS +0.04%) encountered significant problems after the pandemic. Revenue growth slowed while expenses rose -- squeezing profits and margins -- due to several challenges. However, the pharmacy chain giant has been bouncing back. The stock has climbed by 48% over the past 12 months. The good news is that CVS Health's comeback may be just getting started, and there is plenty of upside ahead for investors willing to be patient.
Image source: The Motley Fool.
Anatomy of a comeback CVS Health faced several problems after the pandemic. For instance, sales of pandemic-related products, such as diagnostic tests, slowed significantly. More importantly, though, CVS Health dealt with rising utilization and costs in its health insurance division, particularly in its Medicare Advantage (MA) business. The company revised its guidance downward several times due to this issue, signaling an uncertain environment. However, over the past year, CVS Health has improved its financial results.
They are still getting better, as the company proved during the first quarter. The healthcare giant's revenue increased by about 6% year over year to $100.4 billion. Its adjusted earnings per share rose to $2.57, up about 14% from the year-ago period. Further, CVS Health increased its EPS guidance for the fiscal year 2026. Considering the company's results came in ahead of analyst estimates, it was a raise-and-beat quarter for CVS Health. But why is the company performing better?
There are several factors. Let's consider two. First, during the first quarter, CVS Health's medical benefit ratio (MBR) dropped to 84.6%, down 2.7% compared to the first quarter of 2025. The MBR measures the percentage of premium revenue insurers spend on members' healthcare costs. A lower MBR means higher profits, so this is good news for CVS Health. Second, CVS Health has improved the efficiency of its insurance business by digitizing the prior authorization process. These efforts, and others, have helped keep costs in check and increase the company's profits.
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Why the rebound isn't over We have yet to see the full effect of CVS Health's initiatives, and the company will likely double down on various efforts to improve its business. The pharmacy leader had plans to scale back its MA business this year. That could lead to lower overall revenue, but CVS Health wants to focus on profitable growth. That's good news for investors. Beyond the company's short-term outlook, though, long-term investors will find a lot to like with CVS Health.
The company's large, diversified healthcare business enables it to support patients throughout much of their care journey, whether through its primary care operations, insurance business, pharmacy services, and more. This can be more convenient for patients. Instead of relying on separate entities for their medical needs, CVS Health provides many of them under a single umbrella.
Just as important, CVS Health's vertically integrated model enables it to deliver and finance healthcare services, thereby reducing total expenses by directing patients to lower-cost options. Further, CVS Health has also built a solid brand as a trusted name in the healthcare sector, an advantage that is hard to replicate. All of these factors position CVS Health well to benefit from long-term secular trends, such as the world's aging population, that will drive increased healthcare utilization and higher spending in the sector.
CVS Health is also a solid dividend stock. The company has increased its payouts by 56.5% over the past decade, and it offers a forward dividend yield of 2.6%. Finally, CVS Health remains attractively valued, even after its run over the past 12 months. The company is trading at 13.8x forward earnings, versus the healthcare sector's average of 17.4x. CVS Health remains a top long-term pick for investors.
After a rough start to 2026, CVS Health (CVS 1.25%) shares have more than made up for their initial losses, surging in recent months on the heels of promising Medicare-related developments. Shares are already up over 25% year to date.
But even as shares keep climbing toward the top of sell-side analyst price targets, including the most recently raised price target, don't assume the runway is limited to this figure. Given CVS's strong comeback and potential rerating, it could remain one of the best-performing blue chip stocks this year.
Image source: Getty Images
The latest price target raise for CVS Health On June 8, Mizuho analyst Ann Hynes, while reiterating her bullish rating on CVS Health, raised her price target by 4.5%, from $110 to $115 per share. With shares trading around $97 at the time, this represented about 18.5% upside, but CVS Health's subsequent rally has narrowed that to about 13%.
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Following the stock's latest rally, investor sentiment has shifted strongly. Investors are likely no longer anticipating just "better than expected" results. There may now be an increasing pool of investors who believe that the company can continue to beat expectations. I believe this view is more than reasonable, with the potential for shares to reach levels above Mizuho's aforementioned target.
Loftier price levels within reach Currently, CVS Health trades for just under 13.8 times forward earnings. If the stock were to rise to $115 per share, based on forecasts calling for 2026 earnings of $7.43 per share, CVS Health would be trading at a forward multiple of around 15.5.
The market now fully understands that CVS is a diversified healthcare services company today, similar to UnitedHealth Group. With UnitedHealth now rerated to a forward valuation in the low 20s, such a valuation may be reasonable for CVS as well, especially as forecasts call for further double-digit earnings growth in 2027. If this stock were to rise to a forward multiple in the high teens, or even up to 20 times forward earnings, it could hit prices near $150 per share.
Thomas Niel has positions in UnitedHealth Group. The Motley Fool recommends CVS Health and UnitedHealth Group. The Motley Fool has a disclosure policy.
