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.
CVS's MACD Histogram just turned positive
The Moving Average Convergence Divergence (MACD) for CVS turned positive on October 14, 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 .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on September 26, 2025. You may want to consider a long position or call options on CVS as a result. In of 81 past instances where the momentum indicator moved above 0, the stock continued to climb. 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 338 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 236 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 4 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 3 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
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 October 14, 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 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 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 Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly 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 (1.353) is normal, around the industry mean (4.165). P/E Ratio (22.986) is within average values for comparable stocks, (17.150). Projected Growth (PEG Ratio) (0.684) is also within normal values, averaging (0.929). CVS has a moderately high Dividend Yield (0.032) as compared to the industry average of (0.022). P/S Ratio (0.270) is also within normal values, averaging (0.660).
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 84, placing this stock slightly better than average.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable 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.
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an integrated pharmacy health care provider
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