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 January 03, 2025. Looking at past instances where CVS's MACD turned positive, the stock continued to rise in of 48 cases over the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where CVS's RSI Indicator exited the oversold zone, of 29 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 64 cases where CVS's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Momentum Indicator moved above the 0 level on January 02, 2025. You may want to consider a long position or call options on CVS as a result. In of 86 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 317 cases, the price rose further within the following month. The odds of a continued upward trend are .
Bearish Trend Analysis
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 .
The Aroon Indicator for CVS entered a downward trend on January 03, 2025. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying 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 consistent 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 fairly steady price growth. CVS’s price grows at a lower 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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an integrated pharmacy health care provider
Industry ManagedHealthCare