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
Financials 
Technical Analysis 0
BUY
Allan Tong’s Discover Picks CVS has been paying down debt after buying insurer Aetna three years ago and their balance sheet is in such decent shape that the company recently announced share buybacks, though you may need to wait for a dividend to increase from the current 2.2% based on a low 34% payout ratio. CVS trades a fine 16x PE. The 6.02% EPS marked a 7% rise over the past year. Sales are up 8% YOY and growth is expected around that much. Expect sustainable, moderate growth. (If you want mega, double-digit growth, gamble on Bitcoin.) Read 3 Recession Proof Stocks for our full analysis.
specialty stores
BUY
A steady performer that consistently outperforms. They use their excess cash to pay down debt (to buy Aetna 3 years ago). They recently announced share buybacks and wants to see this increase. This is a long-term investment. They report next week.
Jim LebenthalOwned
specialty stores
TOP PICK
CVS is a major pharmacy benefits manager providing tons of data to large companies like GM. He likes the pharmacy business, because it's much cheaper to go to the pharmacy for a vaccine instead of a hospital. Pharmacy will gain market share. CVS will return to dividend increases after their Aetna acquisition. Trades at 10x earnings. Very well-positioned. This is recession-proof. (Analysts’ price target is $116.70)
Lorne SteinbergOwned
specialty stores
BUY
Has owned this for a long time. Are vertically integrated. At their core are the 10,000 pharmacies. Have merged with Caremark, a pharmacy benefit manager, and bought Aetna the health insurer. Great CEO. They fill about a billion prescriptions a year. CVS offers stability to a portfolio to offset the cyclical ones.
Gordon ReidOwned
specialty stores
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Premium contentTOP PICK
Stockchase Research Editor: Michael O'Reilly We again reiterate CVS, a top retail pharmacy and health care insurance company, as a TOP PICK. It trades at 1.6x book value and forward earnings for next year project a PE of 10x earnings compared to peers at 14x. It pays a good dividend backed by a payout ratio under 40% of cash flow. We like that it has continued to build cash reserves, while aggressively retiring debt and buying back shares. We continue to recommend the trailing stop at $85, looking to achieve $117 -- upside potential of 25%. Yield 2.36% (Analysts’ price target is $117.22)
specialty stores
BUY
Real estate component, acquisitions? Not a real estate play. Unique business model with retail pharmacy and PBM and health insurer all in one company. Balance sheet is in great shape. Gobs of free cashflow, low PE of less than 9. Can't speak to future acquisitions.
Chris BlumasOwned
specialty stores
Premium contentTOP PICK
Stockchase Research Editor: Michael O'Reilly We again reitereate this top retail pharmacy and health care insurance company as a TOP PICK. Sales are up over 8% over the year with net income of $8 billion. It pays a good dividend backed by a payout ratio under 40% of cash flow. We like that it has continued to build cash reserves, while aggressively retiring debt and buying back shares. We recommend moving the stop loss (from $90) down to $85, looking to achieve $117 -- upside potential of 24%. Yield 2.29% (Analysts’ price target is $117.39)
specialty stores
TOP PICK
Defensive value name. Expectations that EPS growth will grow by high single digits or low doubles. Largest drugstore chain, leading pharmacy benefits manager. Aetna purchase added to revenue growth. Shareholder friendly. Beat earnings and raised guidance this week. Beat analysts expectations for 25 consecutive quarters. 12x forward earnings. Trading at discount to historical median. Yield is 2.21%. (Analysts’ price target is $117.86)
Stan WongOwned
specialty stores
TOP PICK
More than just America's leading pharmacy. Vertically integrated colossus. #4 in the Fortune 500, and they got there through acquisitions. Earnings beat today, earnings grew YOY by 9%. Tweaked up guidance. Pivoting away from slower-growing retailer and toward faster-growing, upstream managed care and insurance. Showing financial strength with share buybacks. Trades at 12x earnings, still in middle innings. Lots of visibility in a murky economic environment. Yield is 2.29%. (Analysts’ price target is $117.53)
Brian MaddenOwned
specialty stores
TOP PICK
This drugstore chain is vertically integrated by owning health insurer Aetna, and many of their stores include health hubs where medical personnel including nurses to address people's chronic health issues at a low cost. Their 2021 was solid, driven by vaccinations, but 2022 will be flat. He projects 6-7% annual growth, trades at 12x earnings. Well managed. They fill over 1 billion prescriptions a year. (Analysts’ price target is $117.53)
Gordon ReidOwned
specialty stores
HOLD
Safety trade. Healthcare solutions. Very good future. Over $8 EPS for 2022. New CEO is doing a good job.
Gordon ReidOwned
specialty stores
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