CVS Health (CVS, $57.19) beats Q2 earnings and revenue estimates; wants to slow down new store openings
CVS Health Corp. topped second quarter earnings expectations and raised its full-year profit guidance, leading to a climb in its stock price Wednesday.
For the three months ending June, the retail pharmacy and pharmacy benefit manager reported adjusted earnings of $1.89 per share, marking a +11.8% increase from the year-ago quarter and a significant beat on the Street estimate of $1.69 per share.
Total revenues for the quarter climbed +35.2% year-over-year to $63.4 billion, also exceeding analysts' forecasts of $62.66 billion. Sales from Aetna (which CVS acquired in 2018) emerged as a significant contributor to the overall revenue growth.
Revenues from Pharmacy Services rose +4.2% to $34.8 billion. Retail sales climbed +3.7% to $21.447 billion, even as same-store sale growth slowed to 3.8%. The group's healthcare benefits division experienced a boost in sales from 764 million to $17.4 billion.
Looking ahead, CVS boosted its full-year earnings outlook to a range of $6.89 to $7.00 per share, up from a prior forecast of $6.75 to $6.90.
However, the drugstore chain is apparently slowing its pace of store openings. While it generally opens about 300 stores every year, CVS Pharmacy President Kevin Hourican said that CVS will open about 100 stores this year and will open about 50 next year – as reported by CNBC. Hourican told CNBC that the real estate growth reduction is “a natural change” given the number of stores CVS has and the growth in areas like delivery.
CVS in upward trend: price rose above 50-day moving average on June 11, 2025
CVS moved above its 50-day moving average on June 11, 2025 date and that indicates a change from a downward trend to an upward trend. In of 50 similar past instances, the stock price increased further within the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on June 05, 2025. You may want to consider a long position or call options on CVS as a result. In of 84 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for CVS just turned positive on May 30, 2025. Looking at past instances where CVS's MACD turned positive, the stock continued to rise in of 47 cases over the following month. The odds of a continued upward trend are .
The 10-day moving average for CVS crossed bullishly above the 50-day moving average on June 17, 2025. This indicates that the trend has shifted higher and could be considered a buy signal. In of 18 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where CVS advanced for three days, in of 321 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 214 cases where CVS Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The 10-day RSI Indicator for CVS moved out of overbought territory on June 17, 2025. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 28 similar instances where the indicator moved out of overbought territory. In of the 28 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator has been in the overbought zone for 2 days. Expect a price pull-back in the near future.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where CVS declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
CVS broke above its upper Bollinger Band on June 13, 2025. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is seriously undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.313) is normal, around the industry mean (3.063). CVS has a moderately low P/E Ratio (12.328) as compared to the industry average of (17.509). Projected Growth (PEG Ratio) (1.156) is also within normal values, averaging (1.089). Dividend Yield (0.031) settles around the average of (0.020) among similar stocks. P/S Ratio (0.288) is also within normal values, averaging (0.684).
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating outstanding price growth. CVS’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating slightly better than average sales and a considerably profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. CVS’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 84, placing this stock better than average.
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General Information
an integrated pharmacy health care provider
Industry ManagedHealthCare
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