NYSE:CVS

CVS Health Corp (CVS)

95.93
+1.11 (1.17%)
as of Jun 5, 2026, 8:00:00 pm Market Open.
247 watching
0
HOLD
Policy issues have knocked them down. US needs their business to help them save money. A survivor, and a grower, so he wouldn't sell. They're taking a look at stepping in.
DON'T BUY
Stay away from it because he thinks these businesses are misunderstood. Drugstores are not a defensive business. People will by less makeup in a recession.
HOLD
It has been a tough situation. They have been in flux. They made a big acquisition in Aetna. It will give them the healthcare footprint. They have a store within 3 miles of 70% of the US population. They can solve chronic, non-emergency situations. They provide a low cost alternative to emergency rooms. He is being patient with it. He thinks it will be a winner in the future. They had an earnings issue with one of their divisions. He thinks they are very smart.
WAIT
It's lagged in the past year. Just closed the Aetna purchase. Lots of negative sentiment, including political talk of limiting drug costs as well as fears of Amazon taking over drug delivery. Aetna recently decreased their guidance and the stock dropped. That said, CVS they have good assets including health insurance. Trades at a low 8x multiple. She'll wait what they have to say on investor day in May. Yield is over 3%.
DON'T BUY
He decided to get out because they were on the defensive too much. In the US a lot of funding for drugs comes from the government. They are always looking for ways to bring down healthcare costs in the US. They keep making acquisitions to make the company make sense. He would probably prefer WBA-Q.
DON'T BUY
He sold it. CVS bought Aetna--the combination of the two looked great. Sadly, CVS is having integration problems that could continue, and carry a lot of debt. He held on too long before he sold. If you own this, ride it out.
DON'T BUY
It's had a gut punch with negative earnigns revisions. CVS needs to prove itself for him to step in. The chart is broken. He won't go near this.
COMMENT
It is having a tough time. You are having a 3.3% dividend yield but some of the legacy retail and some of the PBM units are facing structural headwinds. It is going to take time.
COMMENT
He likes health care. It is a more defensive sector. This is not the best of bread on all metrics. They have a great balance sheet and they pay a good yield. They are not compelling, however.
WEAK BUY
He sees about a 21% upside and could see it test $85. He would be a weak buy here.
DON'T BUY
It has yield support of about 3%. Earnings are improving as they do the right things, leading to 8-10% growth. The retail space does not excite him. It has significant overhead resistance. There are better spaces to be in right now. He would look more towards medical devices rather than this space.
BUY
They're positioning themselves in vertical integration to succeed. They just closed the Aetna (insurer) purchase. CVS has 10,000 locations in the U.S. can capitalizing in healthcare by creating a clinic system within CVS locations to address non-emergency medical chronic issues (i.e. testing blood pressure). Most medical issues are not emergencies but they cost emergency rooms heavily. CVS helps address this problem.
HOLD
A poor performer. It is trading at a low valuation. He is taking a good hard look at the sector and this company. Looks cheap and it is in a growth area.
TOP PICK
Good base above $62. Buy at this point, which is the bottom of its range. $63.80 is the exit point. $8-10 upside from here. (Analysts’ price target is $89.62)
DON'T BUY
He bought it because of the extended, mobile delivery of services--it is a good idea. The Uber of healthcare. He owedn CVS for a couple years. But he's concerned about all the American pharmacies offering opiods, and he expects class-action lawsuits against the pharmacies. He's wary of this space and worried.
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