Is CVS Health Stock a Good Investment?
CVS Health Investment Advice | CVS |
- Examine CVS Health's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research CVS Health's leadership team and their track record. Good management can help CVS Health navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Health Care Providers & Services space and any emerging trends that could impact CVS Health's business and its evolving consumer preferences.
- Compare CVS Health's performance and market position to its competitors. Analyze how CVS Health is positioned in terms of product offerings, innovation, and market share.
- Check if CVS Health pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about CVS Health's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in CVS Health Corp stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if CVS Health Corp is a good investment.
Sell | Buy |
Sell
Market Performance | Insignificant | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Below Average | Details | |
Economic Sensitivity | Responds to the market | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Buy | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Possible Manipulator | Details |
Examine CVS Health Stock
Researching CVS Health's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 83.0% of the company shares are held by institutions such as insurance companies. The company has price-to-book (P/B) ratio of 1.01. Some equities with similar Price to Book (P/B) outperform the market in the long run. CVS Health Corp has Price/Earnings To Growth (PEG) ratio of 2.27. The entity last dividend was issued on the 21st of October 2024. The firm had 2:1 split on the 7th of June 2005.
To determine if CVS Health is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding CVS Health's research are outlined below:
| CVS Health Corp has 79.39 B in debt with debt to equity (D/E) ratio of 1.0, which is OK given its current industry classification. CVS Health Corp has a current ratio of 0.92, suggesting that it has not enough short term capital to pay financial commitments when the payables are due. Note however, debt could still be an excellent tool for CVS to invest in growth at high rates of return. | |
| Over 83.0% of CVS Health shares are held by institutions such as insurance companies | |
| On 1st of November 2024 CVS Health paid $ 0.665 per share dividend to its current shareholders | |
| Latest headline from benzinga.com: CVS Healths Options A Look at What the Big Money is Thinking |
CVS Health Quarterly Good Will |
|
CVS Health uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in CVS Health Corp. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to CVS Health's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 7th of February 2024 Upcoming Quarterly Report | View | |
| 1st of May 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 7th of February 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 31st of December 2022 Last Financial Announcement | View |
Earnings surprises can significantly impact CVS Health's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises CVS Health's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
1997-02-05 | 1996-12-31 | 0.1 | 0.11 | 0.01 | 10 | ||
1999-04-28 | 1999-03-31 | 0.19 | 0.21 | 0.02 | 10 | ||
1997-04-24 | 1997-03-31 | 0.11 | 0.13 | 0.02 | 18 | ||
2004-02-12 | 2003-12-31 | 0.29 | 0.32 | 0.03 | 10 | ||
1996-04-23 | 1996-03-31 | -0.05 | 0.03 | 0.08 | 160 | ||
2021-11-03 | 2021-09-30 | 1.78 | 1.97 | 0.19 | 10 | ||
2019-08-07 | 2019-06-30 | 1.69 | 1.89 | 0.2 | 11 | ||
2022-08-03 | 2022-06-30 | 2.17 | 2.4 | 0.23 | 10 |
Know CVS Health's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as CVS Health is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading CVS Health Corp backward and forwards among themselves. CVS Health's institutional investor refers to the entity that pools money to purchase CVS Health's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Jpmorgan Chase & Co | 2024-06-30 | 13.9 M | Pzena Investment Management, Llc | 2024-09-30 | 13.1 M | Franklin Resources Inc | 2024-09-30 | 12.9 M | Charles Schwab Investment Management Inc | 2024-09-30 | 12.2 M | Amvescap Plc. | 2024-06-30 | 12.1 M | Glenview Capital Management Llc | 2024-09-30 | 11.9 M | Hotchkis & Wiley Capital Management Llc | 2024-09-30 | 11.9 M | Northern Trust Corp | 2024-09-30 | 11.6 M | Legal & General Group Plc | 2024-06-30 | 11.4 M | Vanguard Group Inc | 2024-09-30 | 117.6 M | Blackrock Inc | 2024-06-30 | 100.2 M |
CVS Health's market capitalization trends
The company currently falls under 'Large-Cap' category with a total capitalization of 75.45 B.Market Cap |
|
CVS Health's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.06 | 0.10 | |
| Return On Capital Employed | 0.08 | 0.08 | |
| Return On Assets | 0.03 | 0.06 | |
| Return On Equity | 0.11 | 0.12 |
Determining CVS Health's profitability involves analyzing its financial statements and using various financial metrics to determine if CVS Health is a good buy. For example, gross profit margin measures CVS Health's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of CVS Health's profitability and make more informed investment decisions.
Please note, the imprecision that can be found in CVS Health's accounting process means that the reasonable investor should take a skeptical approach toward the financial statement analysis of CVS Health Corp. Check CVS Health's Beneish M Score to see the likelihood of CVS Health's management manipulating its earnings.
Evaluate CVS Health's management efficiency
CVS Health Corp has Return on Asset of 0.0237 % which means that on every $100 spent on assets, it made $0.0237 of profit. This is way below average. In the same way, it shows a return on shareholders' equity (ROE) of 0.067 %, implying that it generated $0.067 on every 100 dollars invested. CVS Health's management efficiency ratios could be used to measure how well CVS Health manages its routine affairs as well as how well it operates its assets and liabilities. At this time, CVS Health's Return On Tangible Assets are comparatively stable compared to the past year. Return On Assets is likely to gain to 0.06 in 2024, whereas Return On Capital Employed is likely to drop 0.08 in 2024. At this time, CVS Health's Intangibles To Total Assets are comparatively stable compared to the past year. Debt To Assets is likely to gain to 0.33 in 2024, whereas Other Assets are likely to drop slightly above 4.8 B in 2024.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 59.64 | 62.62 | |
| Tangible Book Value Per Share | (34.14) | (32.43) | |
| Enterprise Value Over EBITDA | 9.50 | 7.58 | |
| Price Book Value Ratio | 1.33 | 1.26 | |
| Enterprise Value Multiple | 9.50 | 7.58 | |
| Price Fair Value | 1.33 | 1.26 | |
| Enterprise Value | 86.8 B | 91.1 B |
The leadership approach at CVS Health's fosters a culture of excellence and accountability. Our analysis examines how this culture influences financial outcomes and stock valuation.
Dividend Yield 0.0459 | Forward Dividend Yield 0.0459 | Forward Dividend Rate 2.66 | Beta 0.543 |
Basic technical analysis of CVS Stock
As of the 30th of November, CVS Health shows the mean deviation of 1.71, and Risk Adjusted Performance of 0.0418. CVS Health Corp technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices. Please confirm CVS Health Corp variance, value at risk, as well as the relationship between the Value At Risk and skewness to decide if CVS Health Corp is priced some-what accurately, providing market reflects its regular price of 59.85 per share. Given that CVS Health has jensen alpha of (0.09), we suggest you to validate CVS Health Corp's prevailing market performance to make sure the company can sustain itself at some point in the future.CVS Health's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific CVS Health insiders, such as employees or executives, is commonly permitted as long as it does not rely on CVS Health's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases CVS Health insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
CVS Health's Outstanding Corporate Bonds
CVS Health issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. CVS Health Corp uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most CVS bonds can be classified according to their maturity, which is the date when CVS Health Corp has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| CSLAU 495 27 APR 62 Corp BondUS12661PAF62 | View | |
| CSLAU 425 27 APR 32 Corp BondUS12661PAC32 | View | |
| CSLAU 405 27 APR 29 Corp BondUS12661PAB58 | View | |
| CSLAU 475 27 APR 52 Corp BondUS12661PAE97 | View | |
| CSLAU 4625 27 APR 42 Corp BondUS12661PAD15 | View | |
| CSLAU 385 27 APR 27 Corp BondUS12661PAA75 | View | |
| US12663QAC96 Corp BondUS12663QAC96 | View | |
| CVS HEALTH P Corp BondUS126650CD09 | View |
Understand CVS Health's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing CVS Health's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.0418 | |||
| Market Risk Adjusted Performance | 0.0791 | |||
| Mean Deviation | 1.71 | |||
| Semi Deviation | 2.38 | |||
| Downside Deviation | 2.59 | |||
| Coefficient Of Variation | 2194.96 | |||
| Standard Deviation | 2.54 | |||
| Variance | 6.45 | |||
| Information Ratio | (0.01) | |||
| Jensen Alpha | (0.09) | |||
| Total Risk Alpha | (0.32) | |||
| Sortino Ratio | (0.01) | |||
| Treynor Ratio | 0.0691 | |||
| Maximum Drawdown | 18.7 | |||
| Value At Risk | (3.45) | |||
| Potential Upside | 3.57 | |||
| Downside Variance | 6.69 | |||
| Semi Variance | 5.68 | |||
| Expected Short fall | (1.60) | |||
| Skewness | 0.8878 | |||
| Kurtosis | 5.77 |
| Risk Adjusted Performance | 0.0418 | |||
| Market Risk Adjusted Performance | 0.0791 | |||
| Mean Deviation | 1.71 | |||
| Semi Deviation | 2.38 | |||
| Downside Deviation | 2.59 | |||
| Coefficient Of Variation | 2194.96 | |||
| Standard Deviation | 2.54 | |||
| Variance | 6.45 | |||
| Information Ratio | (0.01) | |||
| Jensen Alpha | (0.09) | |||
| Total Risk Alpha | (0.32) | |||
| Sortino Ratio | (0.01) | |||
| Treynor Ratio | 0.0691 | |||
| Maximum Drawdown | 18.7 | |||
| Value At Risk | (3.45) | |||
| Potential Upside | 3.57 | |||
| Downside Variance | 6.69 | |||
| Semi Variance | 5.68 | |||
| Expected Short fall | (1.60) | |||
| Skewness | 0.8878 | |||
| Kurtosis | 5.77 |
Consider CVS Health's intraday indicators
CVS Health intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of CVS Health stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
| Accumulation Distribution | 56144.52 | |||
| Daily Balance Of Power | (0.13) | |||
| Rate Of Daily Change | 1.0 | |||
| Day Median Price | 60.04 | |||
| Day Typical Price | 59.98 | |||
| Price Action Indicator | (0.24) | |||
| Period Momentum Indicator | (0.11) | |||
| Relative Strength Index | 42.02 |
CVS Health Corporate Filings
F4 | 25th of November 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
8K | 18th of November 2024 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
F3 | 15th of November 2024 The report used by insiders such as officers, directors, and major shareholders (beneficial owners holding more than 10% of any class of the company's equity securities) to declare their ownership of a company's stock | ViewVerify |
13A | 13th of November 2024 The form used by investors holding more than 5% of a company's stock, to report their beneficial ownership pursuant to Rule 13d-1 or Rule 13d-2 under the Securities Exchange Act of 1934 | ViewVerify |
CVS Stock media impact
Far too much social signal, news, headlines, and media speculation about CVS Health that are available to investors today. That information is available publicly through CVS media outlets and privately through word of mouth or via CVS internal channels. However, regardless of the origin, that massive amount of CVS data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of CVS Health news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of CVS Health relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to CVS Health's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive CVS Health alpha.
CVS Health Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards CVS Health can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
CVS Health Corp Historical Investor Sentiment
Investor biases related to CVS Health's public news can be used to forecast risks associated with an investment in CVS. The trend in average sentiment can be used to explain how an investor holding CVS can time the market purely based on public headlines and social activities around CVS Health Corp. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
CVS Health's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for CVS Health and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average CVS Health news discussions. The higher the estimate score, the more favorable the investor's outlook on CVS Health.
CVS Health Corporate Directors
| Edward Ludwig | Independent Director | Profile | |
| Mary Schapiro | Independent Director | Profile | |
| Fernando Aguirre | Independent Director | Profile | |
| NancyAnn DeParle | Independent Director | Profile |
Additional Tools for CVS Stock Analysis
When running CVS Health's price analysis, check to measure CVS Health's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy CVS Health is operating at the current time. Most of CVS Health's value examination focuses on studying past and present price action to predict the probability of CVS Health's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move CVS Health's price. Additionally, you may evaluate how the addition of CVS Health to your portfolios can decrease your overall portfolio volatility.