CVS Health Corp (CVS) Buy, Sell or Hold

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CVS Health Corp (CVS)

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95.93

+1.11 (1.17%)

as of Jun 5, 2026, 8:00:00 pm Market Open.

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Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

TOP PICK

Stockchase Research Editor: Michael O'Reilly CVS, the 2nd largest pharmacy in the US, recently came under pressure with the announcement of Amazon stepping into the pharmacy space. However, now trading at 11x earnings, CVS is good value here -- especially after announcing they are hiring 15,000 staff in Q4 to likely become a mass vaccine distributor. Recent earnings of $1.66 per share beat expectations of $1.34. Management raised guidance of annual 2020 earnings to $7.35-$7.42 per share, above analyst calls for $7.23. It pays a great dividend, backed by a 33% payout ratio. We would buy this with a stop-loss at $57, looking to achieve over $82 -- over 21% potential. Yield 2.96% (Analysts’ price target is $82.43)

PAST TOP PICK

(A Top Pick Nov 21/19, Down 9%) He has exited this stock a while ago. Amazon entering the pharma space is negative for CVS. The split congress is a relief for the healthcare space. The pull back is probably exaggerated. A holistic company and a value trade. 3% dividend. Prefers to look elsewhere for more growth.

SELL

This is a stock he once owned. This is a tough industry. Both pharma and front store. He thinks there are better places to invest.

BUY

A way to play the vaccine trade? CVS will benefit from people coming into their locations to get the Covid vaccine, because those customers will wind up buying stuff.

HOLD

Retail pharma and health insurance. Reported a pretty good quarter. Attractive multiple, still single digits. Healthcare reform was an overhang, but the divided Congress may dampen that reform. Earnings multiple should expand, and stock should do well in foreseeable future.

BUY

After CVS bought Aetna CVS remains a really cheap stock at 9x earnings. The new CEO is fine; she's from the health maintenance business. You can invest in the dispensing of the forthcoming vaccine(s) through CVS.

BUY

He likes CVS a lot fundamentally and also on a valuation basis. The company is vertically integrating. They most recently bought an insurer and also introduced a good partial solution to costly healthcare solutions. The HealthHub gives access to a nurse partitioner who can prescribe medical treatment. There is a long run-way in this regard. They trade at less than 10x earnings with a good dividend. There is some execution risk.

BUY

CVS-N vs. WBA-Q. He has been cautious over the last 3 to 4 years as there were too many drug stores. He would pick CVS-N and has just bought some because of their vertical integration.

PAST TOP PICK

(A Top Pick Sep 18/19, Down 5%) Integrating vertically. 9x earnings, good dividend, growing at a good rate. Lots of runway ahead. He continues to hold and recommend it.

DON'T BUY

Struggling with high debt load. Healthcare space and insurance going into the US election, plus Supreme Court nomination, are creating uncertainty. Big boom in telehealth, and this bites into the local CVS option. It's going to be a very competitive business. Challenged. He'd go with UnitedHealth instead.

COMMENT

Regulations in the U.S. may affect distribution They recently bought health insurer Aetna. A cheap stock trading at 9x forward earnings. Not sure why the price has come off in the past month, maybe a rotation into momentum. The PBM business (https://en.wikipedia.org/wiki/Pharmacy_benefit_management) always has an overhang with the US government wanting to lower prices. These worries are absorbed into the CVS stock price. Also, CVS has had to pay more for PPE and labour wages, but these costs should abate in time. The current price reflects all these overhangs.

DON'T BUY

He made a mistake buying this. Doesn't like it. If there's a vaccine, though, it will go higher.

BUY

The rally has ignored the low growth, high-yield, blue chip stocks like CVS. Tading at less than 10x earnings, with a dividend of about 3.5%. A lot to be said for owning this kind of a stock. Could be a nest egg. Drugstores won't disappear, even with online shopping. Better buy than a pharma. Steady eddy.

DON'T BUY

WBA He has owned CVS instead in the past. This and WBA have been hit hard in recent years from a lingering concern over pressure on drug prices in the U.S. So, both have expanded into drug distribution, not just drug retail. The multiple that the market will pay for either has compressed. So, he prefers other stocks in this space, like Loblaws (which owns Shoppers Drug Mart) Drug. Traditionally, drug retailing is a stable business, but in the U.S. the pricing issue remains an overhang.

PAST TOP PICK

(A Top Pick Sep 17/19, Up 4%) CVS is still a good pick and he would purchase it today. Their business is very strong. Profits remain strong.

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CVS Health Corp (CVS)

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