CVS Health (CVS, $70.88) beats Q4 earnings expectations
CVS Health Corp. reported fourth quarter earnings that exceeded analysts’ expectations. The healthcare company said it will resume offering insurance plans that offer 'Obamacare' subsidies.
The company’s adjusted earnings for the three months ending in December fell -25% rom the year-ago quarter to $1.30 per share, 6 cents ahead of the Street consensus forecast.
Revenues increased +4% year-over-year to $69.55 billion, again surpassing analysts' estimates of $68.75 billion.
Revenues in rharmacy Services fell -1.9% year-over-year to $33.355 billion, primarily due to “continued price compression and changes in net new business mix, partially offset by growth in specialty pharmacy and brand inflation."
Retail sales climbed +6.6% to $24.062 billion. Same-store sales were up +5.7%. Healthcare benefits division sales increased +11.4% to $19.1 billion as it added Aetna's operations to its business.
"Our goal is to make health care more accessible, more affordable and simpler. In order to do this, we will accelerate the pace of our progress through targeted investments in key areas that will drive our consumer-focused strategy," CEO Karen Lynch said. "We believe that solving consumer health needs will deliver better health outcomes and lower costs while creating future economic benefit for CVS Health and its shareholders. "
For 2021, CVS expects adjusted EPS in the range of $7.39-$7.55. The Zacks Consensus Estimate for 2021 earnings is pegged at $7.53.
Full-year operating cash flow is projected in the range of $12 billion-$12.50 billion.
CVS said it would return to selling individual health insurance plans under the Affordable Care Act (ACA), popularly known as Obamacare.
Momentum Indicator for CVS turns positive, indicating new upward trend
CVS saw its Momentum Indicator move above the 0 level on January 02, 2025. This is an indication that the stock could be shifting in to a new upward move. Traders may want to consider buying the stock or buying call options. Tickeron's A.I.dvisor looked at 85 similar instances where the indicator turned positive. In of the 85 cases, the stock moved higher in the following days. The odds of a move higher are at .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Moving Average Convergence Divergence (MACD) for CVS just turned positive on January 03, 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 .
CVS moved above its 50-day moving average on January 17, 2025 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for CVS crossed bullishly above the 50-day moving average on January 24, 2025. This indicates that the trend has shifted higher and could be considered a buy signal. In of 19 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 314 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 209 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 RSI Indicator demonstrates that the ticker has stayed in the overbought zone for 11 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 68 cases where CVS's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .
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 January 10, 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 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 Price Growth Rating for this company is (best 1 - 100 worst), indicating steady 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 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 80, placing this stock worse than average.
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General Information
an integrated pharmacy health care provider
Industry ManagedHealthCare