DOJ Gives Preliminary Nod To $69 Billion Merger of CVS Health (CVS, $79.49) and Aetna (AET, $203.72)
U.S. drugstore chain CVS Health's plans to acquire prescription insurer Aetna got the preliminary approval from the U.S. Department of Justice (DOJ). CVS wants to make the acquisition through $69 billion in cash and stock, as revealed by the company in December. If the deal gets through the final stage of regulatory approval, the new merged entity can potentially emerge as a major player in disrupting the healthcare industry and how U.S. consumers access medical care.
Aetna announced on Sept. 27 that it is selling its Medicare Part D drug plan business to WellCare Health Plans, thereby mitigating regulators’ concerns about the conflict of interest between CVS' and Aetna's Medicare Part D plans should the firms merge.
The deal would help CVS gain more data from Aetna about people’s health conditions, which it can use to market its products to individuals and advise people on prevention/precautionary measures while also potentially boosting attendance at its walk-in clinics, MinuteClinics. While CVS currently is the pharmacy benefits manager to Aetna, the merger would only solidify the partnership since it potentially eliminates the possibility of Aetna switching to any other benefits manager in future.
CVS CEO Larry Merlo said that the two companies will create a model that's "easier to use, less expensive and puts people at the center of their care." That’s something even regulators seem to agree with: Assistant Attorney General Makan Delrahim said in a statement that CVS-Aetna merger could reduce Americans’ health care costs and improve the quality of patient care. Medical costs have increased by an average of 5.5 percent or more every year since 2007, according to consulting firm PwC. Recently, the DOJ also green-lighted health insurer Cigna's acquisition of pharmacy benefits manager Express Scripts. Such regulatory approvals are apparently intended to lower healthcare costs for Americans.
CVS’s expected merger with Aetna comes in the face of drugstores facing serious competition from online retailers; Amazon’s acquisition of online pharmacy delivery business PillPack this year potentially adds to the head-to-head.
CVS in downward trend: price may decline as a result of having broken its higher Bollinger Band on June 13, 2025
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 A.I.dvisor looked at 39 similar instances where the stock broke above the upper band. In of the 39 cases the stock fell afterwards. This puts the odds of success at .
Technical Analysis (Indicators)
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 may be shifting from an upward trend to a downward trend. In of 66 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 .
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 .
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.
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 318 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 215 cases where CVS Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
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 83, placing this stock better than average.
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an integrated pharmacy health care provider
Industry ManagedHealthCare
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