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2週前
CVS Health Stock Among the Worst to Own in February
By: Schaeffer's Investment Research | February 4, 2025
• CVS Health stock is historically a losing bet this month
• The stock has been struggling to distance itself from 12-year lows
Volatility is plaguing Wall Street in light of President Donald Trump's tariffs. Regardless of what's up next, traders can take advantage of Schaeffer’s Senior Quantitative Analyst Rocky White's list of 25 worst S&P 500 Index (SPX) stocks for February to know which stocks to avoid over the coming weeks. CVS Health Corp (NYSE:CVS) is among them, and warrants a closer look.
According to White, CVS averaged a 4.3% loss in February in the last decade, settling higher only three times during that period. The stock was last seen down 0.4% to trade at $56.28, indicating a drop of similar magnitude would place it closer to the $53 region.
CVS Health stock has been attempting to distance itself from a Dec. 23, roughly 12-year low of $44.38. The equity's latest rally lost steam before conquering $58, though, and today's losses could bring about a fourth consecutive negative session. Shares are also struggling with pressure from the 200-day moving average, and carry a 23.1% year-over-year deficit.
Short-term options traders are already bearish toward CVS. This is per the security's Schaeffer's put/call open interest ratio (SOIR), which ranks higher than 86% of annual readings.
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4月前
CVS Health (CVS) Stock Slips on C-Suite Shakeup
By: Schaeffer's Investment Research | October 18, 2024
• Options traders are targeting CVS after news of its CEO replacement
• Longtime exec David Joyner is replacing Karen Lynch as CEO
CVS Health Corp (NYSE:CVS) stock is down 7.3% at $59.04 at last glance, after news that the company has replaced CEO Karen Lynch with pharmacy benefits executive David Joyner. The healthcare name previously addressed higher medical costs, and it had been reported that several options were being weighed with strategic advisors. In its release today, CVS announced it expects adjusted earnings of $1.05-$1.10 per share for its third quarter, which is scheduled for release Nov. 6.
Now trading at its lowest levels since late September, CVS Health stock is back under familiar pressure at the $60 level. Headed for its largest single-day percentage drop since its early-May bear gap, the equity is down 25.2% year to date.
Options traders are targeting CVS amid today's volatility. So far, 44,000 calls and 33,000 puts have crossed the tape, which is five times the options volume the stock has typically seen by this point in the day. The November 70 call is the most popular, with new positions opening at the weekly 11/29 50-strike put.
The bullish-leaning sentiment amongst traders isn't unusual, however. CVS' 10-day call/put volume ratio of 5.14 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) ranks higher than 98% of readings from the past year.
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4月前
CVS Health Stock Bounces on Company Updates
By: Schaeffer's Investment Research | October 4, 2024
• CVS Health is considering splitting its retail pharmacy and insurance units
• TD Cowen also upgraded CVS to "buy" and hiked its price target to $85
Shares of CVS Health Corp (NYSE:CVS) are 3.9% higher to trade at $65.40 at last glance, after several updates for the healthcare giant. According to reports, CVS' insurance unit is facing higher-than-usual medical costs and other major issues. In response, the company is conducting a strategic review, and considering shifting from its long-held business strategy by splitting its retail pharmacy and insurance units.
Amid this big news, TD Cowen upgraded CVS Health stock to "buy" from "hold" and hiked its target price to $85 from $59, citing changes to the company's 2025 Medicare Advantage plan benefits as a catalyst. Coming into today, analyst sentiment was split, with 11 rating CVS a "hold" and 13 recommending a "buy" or better, leaving room for more bull notes to roll in.
Puts are more popular at the moment, and a change in the options pits could provide more support. This is per the security's 10-day put/call volume ratio of 0.78 at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) that stands higher than 83% of readings from the past 12 months. Echoing this, its Schaeffer's put/call open interest ratio (SOIR) of 0.59 stands in the elevated 73rd percentile of annual readings.
This shift looks to be taking place, with calls outpacing puts during today's trading. Already, more than 52,000 calls have crossed the tape, 6 times the average intraday volume and well above the 3,484 puts traded so far. Most popular by far is the weekly 10/11 69-strike call.
On the charts, today's bounce puts CVS Health stock on track to close above its 160-day moving average that's acted as resistance since early April. Shares are filling a post-earnings bear gap from April that sent them to their lowest levels since April 2020, resulting in a more than four-year low of $52.78. Pacing for its second consecutive weekly gain of more than 6%, CVS is still down more than 17% in 2024.
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7月前
CVS Health Corporation (CVS) is Attracting Investor Attention
By: Zacks Investment Research | July 24, 2024
CVS Health CVS 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 -4.1% over the past month versus the Zacks S&P 500 composite's +1.8% change. The Zacks Retail - Pharmacies and Drug Stores industry, to which CVS Health belongs, has lost 9.3% over this period. Now the key question is: Where could the stock be headed in the near term?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Earnings Estimate Revisions
Rather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
For the current quarter, CVS Health is expected to post earnings of $1.74 per share, indicating a change of -21.3% 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 points to a change of -19.9% from the prior year. Over the last 30 days, this estimate has changed -0.2%.
For the next fiscal year, the consensus earnings estimate of $7.75 indicates a change of +10.8% from what CVS Health is expected to report a year ago. Over the past month, the estimate has changed -0.1%.
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 #4 (Sell) for CVS Health.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Zacks
Revenue Growth Forecast
While 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 $91.56 billion indicates a year-over-year change of +3%. For the current and next fiscal years, $368.87 billion and $388.97 billion estimates indicate +3.1% and +5.5% changes, respectively.
Last Reported Results and Surprise History
CVS Health reported revenues of $88.44 billion in the last reported quarter, representing a year-over-year change of +3.7%. EPS of $1.31 for the same period compares with $2.20 a year ago.
Compared to the Zacks Consensus Estimate of $89.2 billion, the reported revenues represent a surprise of -0.86%. The EPS surprise was -22.49%.
Over the last four quarters, CVS Health surpassed consensus EPS estimates three times. The company topped consensus revenue estimates three times over this period.
Valuation
Without 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 Line
The 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 #4 does suggest that it may underperform the broader market in the near term.
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8月前
Bear of the Day: CVS Health (CVS)
By: Zacks Investment Research | June 17, 2024
Zacks Rank #5 (Strong Sell) stock CVS Health (CVS) is the largest retail pharmacy chain in the United States. The company operates in four main segments: health care benefits, health services, pharmacy and consumer wellness, and corporate/other. Though CVS is a household name, has been in business for more than 60 years, and is highly profitable, the company’s stock is facing several bearish headwinds that are company-specific and industry-wide.
Retail Theft Plagues Pharmacy Industry
Since 2018, the amount of lost retail revenue due to theft has grown each year consecutively and soared overall. For example, in 2018, retailers lost about $50 billion to theft. By 2024, projections call for retail theft losses to balloon to more than $130 billion and a whopping $143 billion by 2025. According to Capital One Financial (COF), “Retailers lost $112.1 billion in gross revenue and $84.9 billion in fraudulent sales returns in 2022.” Meanwhile, “The average shoplifting incident cost retailers $461.86 in 2020.”
Indeed, there is plenty of time and room for the political blame game. However, as investors, we must focus on what is going on and how it will impact the market while leaving the politics to the dinner table. Brazen organized retail incidents are becoming commonplace. What’s worse, shoplifters are caught roughly 2% of the time and arrested 1% of the time. The troubling trend is leading to higher expenses and worse profit margins.
Image Source: Zacks Investment Research
As a result, CVS and its main drugstore competitor, Walgreens Boots Alliance (WBA), have closed numerous stores in hard-hit areas of the country, such as California and New York. However, customers are turning away from brick-and-mortar drugstores in several open locations. In heavy crime zones like Manhattan, customers must flag down associates to gain access to the growing number of items locked behind protective glass. Instead of accepting the frustrating situation, many retail customers are taking their business to e-commerce retailers such as Amazon (AMZN) or PDD’s (PDD) Temu.
Poor Medicare Advantage Rating Squeezes CVS Profits
Medicare Advantage ratings, or Medicare Star Ratings, measure the performance of Medicare Advantage Part D plans. In 2023, CVS suffered a signficant setback when its largest MA plan, Aetna National PPO, saw its rating plunge from 4.5 to 3.5 stars.
Because of the headwinds above, year-over-year revenue growth at CVS has plunged since 2020.
Image Source: Zacks Investment Research
Relative Performance of CVS Shares Trending Down
CVS shares are down-trending and underperforming the general market by a wide margin – a sign of relative price weakness.
Image Source: Zacks Investment Research
Pharmacy Competitions is Heating Up
Major competitors such as Walgreens, Target (TGT) and Wal-Mart (WMT) are expanding their pharmacy businesses.
Bottom Line
Drugstore giant CVS faces numerous bearish headwinds, which are industry and company-specific. Investors should avoid shares over the next 6-12 months.
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9月前
Bear of the Day: CVS Health (CVS)
By: Zacks Investment Research | May 8, 2024
CVS Health (CVS) is a Zacks Rank #5 (Strong Sell) that is a prominent player in the health solutions sector in the United States.
The stock has had a rough couple of years but has held up until recently. A recent earnings surprise miss has taken away a lot of hope from investors and the stock has now fallen near COVID lows.
The earnings miss seen last week was the first since 2015, which is making investors very nervous about what the rest of 2024 may hold.
About the Company
CVS has been in operation since its incorporation in 1996 and is based in Woonsocket, Rhode Island. The company employs 219,000.
CVS caters to various customer groups, including employer groups, individuals, healthcare providers, and governmental units. Its Health Care Benefits segment provides health insurance products and services, while the Health Services segment offers pharmacy benefit management solutions. Additionally, the Pharmacy & Consumer Wellness segment sells prescription and over-the-counter drugs, beauty products, and personal care items, operating through various channels such as online retail pharmacies and specialty stores.
CVS is valued at $70 billion and has a Forward PE of 7. The stock holds Zacks Style Scores of “A” in Growth and Value, and “B” in Momentum. CVS pays a dividend of 4.75%.
Q1 Earnings
Last Wednesday, CVS Health reported an EPS miss of $1.31, falling short of the expected $1.69 per share. Revenue also missed estimates, coming in at $88.4 billion compared to the expected $89.2 billion.
This disappointing performance prompted a downward revision of the company's outlook for fiscal year 2024, with adjusted earnings per share now expected to be "at least" $7.00, down from the previous estimate of $8.31.
Similarly, cash flow from operations for FY24 has been revised downwards to at least $10.5 billion, signaling a significant reduction from the previous projection of $12.0-12.5 billion.
Several factors have contributed to this downward revision, including near-term challenges in the Medicare Advantage segment. The company cited a medical benefits ratio of 90.4% in Q1, a notable increase from 84.6% year-on-year, indicating increased pressure on healthcare spending. Additionally, the Health Care Benefits segment witnessed a decline in operating margin from 7.0% to 2.3% year-on-year, reflecting operational challenges and cost pressures.
Management acknowledged the difficulties faced by the company, attributing some of the challenges to external factors such as the cyberattack on Change Healthcare, which impaired the visibility of medical claims in Q1.
Earnings Estimates
Over the last 7 days, earnings estimates have been slashed by analysts.
For the current quarter, estimates plunged from $2.21 to $1.83, or 17%. For the next quarter, estimates have been lowered by 7%.
For the current year, we see an 11% drop, with estimates falling from $8.29 to $7.35
For next year, the last 7 days have seen a 13% drop, falling from $9.08 to $7.94.
Analysts have also been lowering price targets since earnings. Some more notable names include UBS going from $85 to $60 and Morgan Stanley dropping to $65 from $85.
Technical Take
The COVID lows for CVS were just under $52. The stock is now under 10% away from that spot where it may find support.
Additionally, the dividend is around 5%, which could be attractive to investors If interest rates start coming down.
However, the fundamental issues have been showing themselves on the chart for about a year. The stock is down almost 50% since the start of 2023 and should be considered a falling knife that one should avoid.
Investors should be patient and wait until technical support is confirmed. Some levels to watch are $52, $44, and $39.
The 200-day moving average is way up at $72 and the 21-day is at $66.
In Summary
Investors should exercise caution and closely monitor CVS Health's performance in the coming quarters. With headwinds mounting and growth prospects uncertain, the company faces a pivotal juncture in its journey toward sustaining profitability and enhancing shareholder value.
For those interested in the space, a better option might be Walgreens Boots Alliance (WBA). While the company has seen many of the same issues as CVS, the stock is a Zacks Rank #3 (Hold) that is coming off a 46% EPS beat.
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10月前
Gear Up for CVS Health (CVS) Q1 Earnings: Wall Street Estimates for Key Metrics
By: Zacks Investment Research | April 26, 2024
The upcoming report from CVS Health CVS is expected to reveal quarterly earnings of $1.69 per share, indicating a decline of 23.2% compared to the year-ago period. Analysts forecast revenues of $89.22 billion, representing an increase of 4.6% year over year.
The consensus EPS estimate for the quarter has undergone a downward revision of 0.4% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.
Ahead of a company's earnings disclosure, it is crucial to give due consideration to changes in earnings estimates. These revisions serve as a noteworthy factor in predicting potential investor reactions to the stock. Numerous empirical studies consistently demonstrate a strong relationship between trends in earnings estimate revision and the short-term price performance of a stock.
While it's common for investors to rely on consensus earnings and revenue estimates for assessing how the business may have performed during the quarter, exploring analysts' forecasts for key metrics can yield valuable insights.
In light of this perspective, let's dive into the average estimates of certain CVS Health metrics that are commonly tracked and forecasted by Wall Street analysts.
Analysts forecast 'Net revenue- Health Services segment' to reach $41.23 billion. The estimate points to a change of -7.5% from the year-ago quarter.
The combined assessment of analysts suggests that 'Revenue- Pharmacy & Consumer Wellness Segment' will likely reach $29.67 billion. The estimate points to a change of +6.3% from the year-ago quarter.
According to the collective judgment of analysts, 'Revenue- Health Care Benefits' should come in at $30.75 billion. The estimate suggests a change of +18.8% year over year.
The consensus estimate for 'Revenue- Health Care Benefits Segment- Services' stands at $1.44 billion. The estimate indicates a change of +4.6% from the prior-year quarter.
Based on the collective assessment of analysts, 'Medical benefit ratio (MBR)' should arrive at 88.3%. Compared to the present estimate, the company reported 84.6% in the same quarter last year.
The collective assessment of analysts points to an estimated 'Medical membership - Total' of 26,542.28 thousand. The estimate is in contrast to the year-ago figure of 25,513 thousand.
The consensus among analysts is that 'Medical membership - Medicaid - Total' will reach $2.40 billion. The estimate compares to the year-ago value of $2.79 billion.
The average prediction of analysts places 'Medical membership - Medicare Advantage - Total' at 4,031.44 thousand. The estimate compares to the year-ago value of 3,387 thousand.
Analysts expect 'Medical membership - Commercial - Total' to come in at 18,770.50 thousand. The estimate is in contrast to the year-ago figure of 17,988 thousand.
Analysts predict that the 'Medical membership - Insured - Medicare Supplement' will reach $1.35 billion. Compared to the present estimate, the company reported $1.34 billion in the same quarter last year.
It is projected by analysts that the 'Pharmacy claims processed' will reach 463.11 million. The estimate is in contrast to the year-ago figure of 587.3 million.
Analysts' assessment points toward 'Medical membership - ASC - Commercial' reaching 14,253.67 thousand. Compared to the present estimate, the company reported 14,039 thousand in the same quarter last year.
CVS Health shares have witnessed a change of -15.6% in the past month, in contrast to the Zacks S&P 500 composite's -3.2% move. With a Zacks Rank #4 (Sell), CVS is expected underperform the overall market performance in the near term.
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1年前
Is the Worst Over for CVS Health Stock?
By: Schaeffer's Investment Research | January 29, 2024
• The security could bounce off the 80-day trendline
• CVS shed more than 16% in the last 12 months
CVS Health Corp (NYSE:CVS) stock was last seen up 0.6% at $73.40, extending a bounce off the $70 level. While the security carries a 16.9% year-over-year deficit and last week fell under its 50-day moving average for the first time since December, there's indication this underperformance could soon be a thing of the past. CVS Health stock's most recent pullback placed it within a trendline with historically bullish implications.
Specifically, CVS is within one standard deviation of its 80-day trendline. Per data from Schaeffer's Senior Quantitative Analyst Rocky White, the security saw no fewer than five similar signals in the last three years, defined for this study as having traded north of this moving average 80% of the time during the last two months, and in eight of the past 10 trading days.
CVS was higher one month later in 80% of those instances, with an average 3.9% gain. A move of similar magnitude from its current perch would place the security back above $76.
Over at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the security's 10-day call/put volume ratio sits in the 80th percentile of its annual range. This means an unwinding of pessimism could boost CVS.
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1年前
Healthcare Stocks Slide After Humana Forecast
By: Schaeffer's Investment Research | January 18, 2024
• Humana's disappointing 2023 profit outlook is weighing on healthcare sector
• Humana stock is trading at two-year lows after the report
The healthcare sector is taking a hit after Humana Inc (NYSE:HUM) today slashed its 2023 profit outlook, citing higher-than-anticipated medical costs in the fourth quarter. UnitedHealth Group Inc (NYSE:UNH) and CVS Health Corp (NYSE:CVS) are two notable names falling after the report, as both extend an already rocky start to 2024.
At last glance, Humana stock is trading at two-year lows, down 10.9% at $398.84 -- earlier as low as $390.50 -- and on the short sell restricted (SSR) list. Since last January, HUM is down 17.5%. So far in the options pits, 20,000 calls and 23,000 puts have been exchanged, which is already 4.2 times the average daily volume. The January 2026 400-strike put is the most popular, where new positions are being opened.
Meanwhile, UnitedHealth Group stock was last seen down 2.8% at $510.04, hitting $497.96 at its lowest level today. Sinking below its 140-day moving average, which previously caught a pullback this month, the equity is currently grappling with its 200- and 320-day trendlines. Since last January, the security is up 7.1%. In the options pits, UNH is seeing three times the volume typically seen at this point, with the most activity at the January 500 put.
The shares of CVS Health stock were last seen down 4.6% at $73.42, though potential support lingers just below at the 80-day moving average, as well as former pressure at the $72 region. Today's drop has the stock on track for its seventh daily loss in the last eight sessions. Year-over-year, the equity is down 16.7%. Options traders are targeting CVS at triple the usual intraday volume as well, with new positions being opened at the most active contract, the January 70 put.
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1年前
CVS sell-off overdone says HSBC, Walgreens Boots Alliance 'execution risks are significant'
By: Investing | December 22, 2023
HSBC initiated CVS Health (NYSE:CVS) with a Buy rating and Walgreens Boots Alliance (NASDAQ:WBA) with a Hold rating in a note to clients Friday, stating healthcare business models have been in constant flux.
While the market is still quite fragmented, HSBC believes there are attractive growth opportunities.
CVS was assigned a $94 per share price target, implying a potential 21.7% upside from current levels. The bank said the company has an attractive and undervalued moat and is trading at a steep discount to historical levels.
In addition, HSBC said that with the company's shares "down roughly 18% LTM (vs SPX up by 23% over the same period)," the sell-off "appears overdone."
WBA was assigned a $27 per share price target. HSBC believes the company requires operational discipline to improve its execution, boost overall performance, and restore profitability.
Furthermore, while WBA faces "near-term operational challenges," it could unlock value, but the "execution risks are significant," according to analysts.
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1年前
CVS Health adds 2% as 2024 revenue outlook tops estimates
By: Investing | December 5, 2023
CVS Health (NYSE:CVS) has forecasted revenue for 2024 to be at least $366 billion, which exceeds the current Street estimate of $345.5 billion.
The company anticipates adjusted earnings per share of at least $8.50, in line with the consensus, with the cash flow from operations projected to be at least $12.5 billion. Updates were shared ahead of the company’s 2023 Investor Day.
CVS shares rose 2.2% on the news.
CVS Health also said it plans to introduce a new pharmacy reimbursement model called CVS CostVantage, aimed at evolving the traditional reimbursement model and providing greater transparency and simplicity.
"We are leading with an approach that will shift how our retail pharmacy is compensated by implementing a more transparent and sustainable model that fairly aligns pharmacy reimbursement to the quality services we provide," said Prem Shah, PharmD, executive vice president, Chief Pharmacy Officer and President, Pharmacy and Consumer Wellness, CVS Health.
This new approach is scheduled to be launched with pharmacy benefit managers (PBMs) for commercial payors in 2025.
The company also reaffirmed its financial guidance for the year 2023. It continues to see adjusted EPS at $8.60 (up or down 10 cents) on revenue in the range of $351.5-357.3 billion.
The average analyst estimate is $8.60 for FY23 EPS on revenue of $353.7 billion.
"We are successfully executing on our strategy to advance the future of health care while unlocking new value for consumers," said CVS Health President and CEO Karen S. Lynch.
CVS Health has approved a quarterly dividend of $0.665 cents per share, marking a 10% increase from the previous dividend of $0.605 cents per share. The dividend will be payable on February 1, 2024, to shareholders of record as of January 22, 2023.
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1年前
Bridgewater Associates LP Acquires 212,648 Shares of CVS Health Co. (CVS)
By: MarketBeat | November 24, 2023
• Bridgewater Associates LP boosted its holdings in CVS Health Co. (NYSE:CVS) by 8.6% during the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 2,686,418 shares of the pharmacy operator's stock after buying an additional 212,648 shares during the period. CVS Health makes up about 1.1% of Bridgewater Associates LP's investment portfolio, making the stock its 17th biggest position. Bridgewater Associates LP owned approximately 0.21% of CVS Health worth $185,712,000 at the end of the most recent quarter...
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1年前
CVS Health Giant Prepares for Earnings Call
By: Schaeffer's Investment Research | October 31, 2023
• CVS Health is set post earnings before the market opens tomorrow
• CVS has a history of positive post-earnings moves
Pharmaceutical concern CVS Health Corp (NYSE:CVS) will enter the earnings confessional before the open tomorrow. The mean analyst earnings estimate is $2.13 per share, with revenue expected to rise to $88.25 billion year on year for the third quarter.
Looking back at CVS Health's last eight quarterly reports, the company's shares tend to move higher after earnings. Over the last two years, all but two post-earnings sessions finished positive. The security averaged a 4.4% swing, regardless of direction, the day after reporting results, and the options pits are pricing in a nearly 8.4% move this time around.
Ahead of the event, CVS Health stock was last seen 0.6% higher at $68.44, though it's struggled for most of the year on the charts, down 26.4% in 2023. A mid-August bear gap sent CVS to its lowest level since November 2020, just above the $64.50 mark. The equity pulled sharply back last week as well, though the $66 level stepped up to stymie the losses.
In the options pits, CVS sports 50-day put/call volume ratio of 1.17 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This ratio sits higher than 92% of all other readings from the past 12 months, suggesting a much healthier appetite for puts over the last 10 weeks.
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1年前
CVS Health announces quarterly dividend
Source: PR Newswire (US)
WOONSOCKET, R.I., Sept. 21, 2023 /PRNewswire/ -- CVS Health (NYSE: CVS) has announced that its board of directors has approved a quarterly dividend of sixty and a half cents ($0.605 cents) per share on the Common Stock of the Corporation. The dividend is payable on November 1, 2023, to holders of record on October 20, 2023.
About CVS Health
CVS Health® is the leading health solutions company, broadening access to care for millions of people nationwide. We improve the health of communities across America through our local presence, digital channels and with over 300,000 dedicated colleagues – including more than 40,000 physicians, pharmacists, nurses, and nurse practitioners. We support individuals with their health – whether that's managing health conditions, staying compliant with their medications or accessing affordable health services in the most convenient ways. Our goal is to create seamless connections across the health care system, simplifying the experience and being a trusted partner for every meaningful moment of health. And we do it all with heart, each and every day. Follow @CVSHealth on social media.
CVS Health logo (PRNewsFoto/CVS Health)
Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/cvs-health-announces-quarterly-dividend-301935002.html
SOURCE CVS Health Corporation
Copyright 2023 PR Newswire
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1年前
CVS Health Co. (CVS) Stake Lifted by Renaissance Technologies LLC
By: MarketBeat | September 9, 2023
• Renaissance Technologies LLC increased its stake in shares of CVS Health Co. (NYSE:CVS) by 97.9% in the first quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 5,069,953 shares of the pharmacy operator's stock after buying an additional 2,508,500 shares during the quarter. CVS Health comprises approximately 0.5% of Renaissance Technologies LLC's holdings, making the stock its 23rd largest position. Renaissance Technologies LLC owned 0.40% of CVS Health worth $376,748,000 at the end of the most recent reporting period...
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2年前
Blue Shield of California looks to cut reliance on CVS, taps Amazon
By: Investing.com | August 17, 2023
(Reuters) -Non-profit insurer Blue Shield of California plans to depend less on CVS Health (NYSE:CVS) as its pharmacy benefit manager and work with others such as Amazon.com (NASDAQ:AMZN) and Mark Cuban's drug firm to reduce reliance on companies that negotiate drug prices.
CVS shares slid over 6%, while rivals Cigna (NYSE:CI) Group and UnitedHealth Group (NYSE:UNH), which also have pharmacy benefit management units, fell 5% and 1%, respectively, in early trade.
Pharmacy benefit managers (PBMs), which maintain lists of drugs covered by health insurance plans and negotiate prices with manufacturers, have recently come under scrutiny from lawmakers for their role in rising healthcare costs.
Blue Shield, which has health plans that cover 4.8 million members, said it will now work with five different companies, including Mark Cuban Cost Plus Drug Company, to provide "convenient, transparent access to medications while lowering costs".
"Many in the industry will likely be watching this situation closely as managing the five partnerships could prove tricky , but if it (Blue Shield) is successful, we could see additional regionals move more in a similar direction," said Elizabeth Anderson, analyst at Evercore ISI.
Blue Shield will still retain CVS Caremark for its specialty pharmacy services, while Amazon will provide delivery of prescription medications as well as upfront pricing. Mark Cuban Cost Plus Drug Company will work to reduce surprise drug costs at the pharmacy pick-up counter.
"We look forward to providing care for Blue Shield of California's members who require complex, specialty medications – as we have for nearly two decades," CVS said in a statement.
Privately held Abarca will pay prescription drug claims, while smaller PBM Prime Therapeutics would work with Blue Shield to negotiate savings with drugmakers, the non-profit insurer said.
Blue Shield said it expects to save up to $500 million in annual drug costs once its multi-year strategy is fully implemented.
The loss of the Blue Shield pharmacy benefit management contract is another blow to Caremark, which is also set to lose the contract to manage Centene (NYSE:CNC)'s $40 billion annual pharmacy needs from next year.
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CVS Health lowers 2024 guidance despite second-quarter profit beat
By: Investing.com | August 2, 2023
CVS Health (NYSE:CVS) reported better-than-expected profit and revenue in the second quarter, but higher medical costs and a sweeping restructuring push led the healthcare giant to lower its 2024 earnings outlook and scrap its 2025 guidance.
Adjusted earnings per shares during the three months until the end of June slipped to $2.21 from $2.53 last year, but still beat consensus estimates of $2.13. Meanwhile, revenue rose 10.3% to $88.92 billion, topping forecasts of $86.41 billion.
"Our diversified business model delivered strong results this quarter," Chief Executive Officer Karen S. Lynch said in a statement. "We continue to execute on our strategy to expand access to health services across our care delivery channels and strengthen our engagement with consumers to improve their health and well-being."
According to Reuters, the Rhode Island-based pharmacy chain said that it would slash about 5,000 non-customer facing roles in order to control expenses following a string of acquisitions. CVS recently purchased home health care services firm Signify Health for $8B and primary care provider Oak Street Health for $10.6B in a bid to expand the scope of the business beyond health insurance and pharmacies.
The group booked a restructuring charge of $496 million that was linked to the layoffs and other impairments, Reuters added.
Meanwhile, CVS backed its 2023 adjusted earnings guidance of $8.50 to $8.70. However, it expects its medical benefit ratio -- a ratio of claims paid to premium collected -- to come in at the higher end of its outlook of 84.7%, plus or minus 50 basis points. The number, which is used by CVS to gauge the performance of its insurance unit, has come under scrutiny following a post-COVID surge in demand for elective surgeries that were delayed during the pandemic.
The company also cut its 2024 adjusted income outlook, citing the impact of both the strategic overhaul and the elevated medical expenses. Chief Financial Officer Shawn Guertin said in a conference call that the firm now sees profit next year at between $8.50 to $8.70 a share, down from the prior forecast of $9 per share. Its 2025 adjusted earnings per share guidance of $10 was also withdrawn.
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CVS Health (CVS) beats profit estimates, starts restructuring to cut costs
By: Investing.com | August 2, 2023
(Reuters) - CVS Health Corp reported better-than-expected second-quarter earnings on Wednesday, and said it had begun implementing a restructuring program to cut costs after a recent spree of acquisitions.
The company has been expanding beyond health insurance and pharmacies with its buyouts of primary-care provider Oak Street Health and home healthcare services firm Signify Health.
CVS Health (NYSE:CVS), which completed the acquisitions earlier this year, has flagged higher-than-expected transaction and integration costs related to the deals.
The company said it recorded $496 million in pre-tax charges related to a restructuring program it started during the quarter to rein in costs.
CVS, which has a large retail pharmacy chain, a health insurance business and a pharmacy benefit management (PBM) unit, has said it would pause acquisitions in the near term but may look at "additional opportunities" over a longer timeframe.
Excluding items, the company reported a profit of $2.21 per share, above analysts' average estimate of $2.11 per share, boosted by strength in its PBM unit, which negotiates drug prices with manufacturers.
Sales at CVS' health services segment, which contains its PBM unit, rose 7.6% to $46.22 billion in the reported quarter compared with a year earlier.
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Keel Point LLC Acquires 9,921 Shares of CVS Health Co. (CVS)
By: MarketBeat | June 16, 2023
• Keel Point LLC grew its holdings in shares of CVS Health Co. (NYSE:CVS) by 26.4% in the first quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 47,499 shares of the pharmacy operator's stock after acquiring an additional 9,921 shares during the period. Keel Point LLC's holdings in CVS Health were worth $3,530,000 as of its most recent filing with the Securities and Exchange Commission (SEC)...
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Is It Time To Bet On CVS?
By: Barchart | June 7, 2023
The June/July issue of Fortune is out. It is dedicated to its Fortune 500 rankings. One CEO who appears prominently in the magazine is CVS (CVS) CEO, Karen Lynch.
Not only does Lynch appear in an article lamenting that despite the number of female and Black CEOs in the Fortune 500, it's still an abysmal record. I couldn’t agree more.
However, that’s not why I’ve brought up Lynch’s name.
The reason I’m talking about Lynch is that she appears in a second article in Fortune’s latest issue discussing Big Healthcare and whether it will be able to fix what ails America’s healthcare system.
CVS stock is down 24% year-to-date and up just 7% over the past five years. While the article paints a positive picture of CVS’s contribution to fixing healthcare in America, the appearance in Fortune could be a curse rather than a blessing.
My big question is whether it’s time to bet on CVS.
The Upside For CVS
First of all, for all those like me who didn’t know this juicy factoid: Fortune points out that the company began life as the Consumer Value Store, hence the CVS acronym. I’m a business history freak, so that’s one to file away, but I digress.
Since Lynch became CEO in 2021, she’s made two mid-sized acquisitions: In September 2022; the company announced that it would acquire Signify Health for $8 billion. It completed its acquisition of the home healthcare provider in late March.
“This transaction advances our value-based care strategy by enhancing our presence in the home,” Lynch stated in CVS’s press release announcing the acquisition’s completion. “Our expanded capabilities will bring us closer to the consumer as we continue to redefine how people access and experience care that is more affordable, convenient and connected."
In February, CVS announced a second multi-billion-dollar acquisition, agreeing to pay $10.6 billion for Oak Street Health. This primary care provider operates storefront clinics in lower-income neighborhoods in 21 states.
“Combining Oak Street Health's platform with CVS Health's unmatched reach will create the premier value-based primary care solution,” Lynch said in February, announcing the deal. “Enhancing our value-based offerings is core to our strategy as we continue to redefine how people access and experience care that is more affordable, convenient and connected.”
The company’s transformation from a pharmacy chain to a pharmacy benefit manager to a primary care provider and, ultimately, to representing your entire healthcare ecosystem started years ago but is now accelerating under Lynch.
“While recognizing that we have shareholders, and a lot of different stakeholders, my personal passion is, ‘How do we improve the health care system?’?” Lynch told Fortune. “We have the opportunity to really drive engagement, simplicity, effectiveness—and to drive patients to the right care at the right time, in the right places.”
While there is no doubt that the stakes are high, if CVS can walk the fine line between altruistically helping patients and profiting handsomely from doing so, five to 10 years from now, those holding over the entire period will be greatly rewarded for their patience and loyalty in the plan.
That said, its stock has performed poorly in recent years precisely because investors doubt its long-term strategy.
The Big Downside to Its Vision
As Fortune points out, CVS is one of several large healthcare companies looking to transform the American healthcare system through value-based care, a panacea that might not come to fruition.
“In conversations with a couple dozen stakeholders, including three former CMS administrators, about Big Health Care’s fitness for the value-based care role, most opinions landed between skeptical and wait-and-see. Will care improve? Maybe, through better coordination. Will it lower costs? Unlikely. Is investment in primary care, whatever the source, a good thing? You bet,” Fortune contributors Maria Aspan and Erika Fry wrote.
So, if doctors, other health practitioners, and patients fail to buy into the value-based model pushed by companies like CVS, the expensive acquisitions Lynch and the company’s previous CEOs have made -- $130 billion since 2006 -- will have all been for nothing.
Let’s put it this way.
Before its acquisition spree began, CVS had $1.6 billion in long-term debt in 2005. That was 10.4% of its total assets. At the end of March, its long-term debt was $56.5 billion, or 23.6% of its total assets, more than double what it was less than 20 years ago.
Sure, its operating profits have grown from $2.0 billion in 2005 to $7.7 billion in 2022, a compound annual growth rate (CAGR) of 8.3%. However, the CAGR of its debt was nearly 23% over the same period.
With higher interest rates, this becomes a far more significant issue should the business model fail to gain the traction necessary to pay for all of this debt incurred.
Is It Time To Bet on CVS?
CVS has a trailing 12-month free cash flow of $17.4 billion. Based on an enterprise value of $145.4 billion, it has a free cash flow yield of 12%. I consider anything over 8% to be in value territory.
So, my answer would be yes, but only if you’re a patient investor. Lynch’s plan could take several years to play out.
I guess we’ll find out.
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