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CVS vs ELV
Which Stock Would AI Choose? CVS Health (CVS) vs. Elevance Health (ELV) Stock Comparison
Key Takeaways
- CVS Health has staged a remarkable turnaround over the past year, with its stock gaining roughly 76% as the Aetna health insurance unit recovered and pharmacy operations strengthened.
- Elevance Health has faced persistent headwinds from elevated medical cost trends in its Medicaid and Affordable Care Act (ACA) plan segments, weighing on margins and forward guidance.
- CVS operates a uniquely diversified model spanning pharmacy retail, pharmacy benefit management (PBM), and health insurance, while Elevance is a more focused health benefits company with a growing services arm, Carelon.
- Elevance generated significantly higher adjusted earnings per share (EPS) of $30.29 in fiscal 2025 versus CVS's $6.75, reflecting different business scale and capital structures, though CVS produced more than double Elevance's total revenue.
- CVS's 2026 adjusted EPS guidance of $7.00–$7.20 implies continued earnings growth, while Elevance guided for at least $25.50 in 2026, marking a notable year-over-year decline from 2025's $30.29.
- Divergent revenue and earnings trajectories make this a compelling comparison for investors weighing turnaround momentum against established earnings power under pressure.
Introduction
CVS Health and Elevance Health occupy overlapping yet distinct spaces in the U.S. healthcare landscape. Both companies rank among the largest health insurers in the country, but their business models diverge in important ways — CVS combines a massive retail pharmacy footprint, a leading PBM (pharmacy benefit manager, which negotiates drug prices for insurers and employers), and the Aetna insurance franchise under one roof, while Elevance operates primarily as a Blue Cross Blue Shield-affiliated health insurer complemented by its Carelon health services platform. For investors and traders evaluating exposure to the healthcare sector, understanding how these two giants compare on momentum, risk, and strategic positioning is essential. This comparison examines recent performance, key developments, and relative positioning to help frame the investment debate.
CVS Overview and Recent Performance
CVS Health Corporation is a diversified healthcare company whose operations span pharmacy retail (over 9,000 locations), pharmacy benefit management through CVS Caremark, health insurance via Aetna, and healthcare delivery through Oak Street Health and Signify Health. In fiscal 2025, CVS generated record total revenues of approximately $402 billion, up 7.8% year over year, driven by growth across all operating segments. Adjusted EPS for 2025 reached $6.75, comfortably exceeding the company's mid-year guidance range. The stock has been a standout performer in the healthcare space, rallying roughly 76% over the trailing one-year period as of mid-2026, as investors responded favorably to a sustained operational turnaround.
Key catalysts behind CVS's resurgence include a disciplined recovery at Aetna, which has returned toward target margins after a challenging 2024 marked by elevated Medicare Advantage medical costs. The pharmacy and consumer wellness segment has benefited from increased prescription volumes and the acquisition of prescription files from former Rite Aid locations. CVS also completed its transition to cost-based pharmacy reimbursement models across its commercial, third-party discount, Medicare, and Medicaid businesses. Looking ahead, the company has guided for 2026 adjusted EPS of $7.00 to $7.20 and GAAP diluted EPS of $5.94 to $6.14, signaling continued confidence in operational momentum. The company also committed $20 billion over the next decade to healthcare technology and interoperability improvements.
Elevance Health Overview and Recent Performance
ELV Elevance Health, Inc., formerly known as Anthem, is one of the largest health benefits companies in the United States, serving approximately 45 million medical members through its affiliated Blue Cross and Blue Shield plans across 14 states. The company also operates Carelon, a growing health services platform that includes pharmacy benefit management, behavioral health, palliative care, and data analytics capabilities. In fiscal 2025, Elevance reported operating revenue of $197.6 billion, a 13% increase from the prior year, and adjusted diluted EPS of $30.29, though this represented a decline from $33.04 in 2024.
Recent quarters have been defined by elevated medical cost trends, particularly in the company's Medicaid and ACA health plan segments. The full-year 2025 benefit expense ratio — the percentage of premium revenue spent on medical claims — reached 90.0%, an increase of 150 basis points (1.5 percentage points) compared to 2024. These cost pressures prompted management to revise guidance downward during 2025 and set a cautious 2026 outlook: adjusted EPS of at least $25.50 and GAAP diluted EPS of at least $22.30, with total operating revenue expected to decline by a low single-digit percentage. The stock has traded well below its September 2024 all-time high of roughly $544, reflecting investor concerns about margin compression and membership attrition in Medicaid. Elevance returned $4.1 billion to shareholders in 2025 through dividends and buybacks, underscoring a commitment to capital returns even amid operational headwinds.
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Head-to-Head Comparison
The most fundamental contrast between CVS and Elevance lies in business model diversification. CVS operates an integrated healthcare ecosystem that connects pharmacy dispensing, drug pricing negotiation, health insurance, and primary care delivery under one corporate umbrella. This vertical integration creates opportunities for cost synergies and cross-selling but also introduces complexity and exposes the company to a broader set of regulatory and competitive dynamics. Elevance, by comparison, is more concentrated in the health benefits business, with Carelon providing a complementary but smaller-margin services layer.
On growth trajectory, the divergence is stark. CVS enters 2026 with upward earnings momentum and a management team that has repeatedly raised guidance. Elevance is navigating a reset year, with adjusted EPS projected to contract meaningfully as the company works through medical cost pressures and pricing adjustments. However, Elevance's long-term earnings algorithm — targeting at least 12% average annual adjusted EPS growth — suggests management views current headwinds as transitory. Elevance also boasts substantially higher per-share profitability and a track record of aggressive capital return, having repurchased shares at an accelerated pace during price dips.
Risk profiles differ as well. CVS faces litigation overhangs from legacy business practices, the integration risk of its multi-asset model, and exposure to pharmacy reimbursement reform debates. Elevance contends with Medicaid redetermination-driven membership losses, ACA plan medical cost volatility, and the political sensitivity of government contract rate-setting. Sector-wide, both companies navigate the same regulatory and utilization-trend uncertainties affecting all major health insurers.
Market sentiment has clearly favored CVS recently, as reflected in the sharp divergence in one-year stock performance. CVS trades at a notably lower forward price-to-earnings multiple — roughly 11 times forward earnings versus higher multiples historically associated with more purely insurance-focused peers — partly reflecting the market's historically lower valuation for its pharmacy and PBM earnings streams. Elevance commands a higher multiple on lower near-term earnings expectations, suggesting the market may be pricing in a recovery that has yet to materialize in reported results.
Tickeron AI Verdict
Based on observable trend data and relative positioning, Tickeron's AI-driven analysis would likely favor CVS in the current environment. The stock has demonstrated stronger and more consistent upward price momentum over the trailing twelve months, supported by consecutive quarters of operational improvement and upward guidance revisions. Elevance, while possessing a more established earnings track record and a robust capital-return framework, currently faces a more uncertain near-term path as elevated medical cost ratios and membership attrition weigh on sentiment and compress forward estimates. The contrast in guidance trajectories — CVS projecting growth, Elevance projecting contraction — tilts the probabilistic balance toward CVS on a tactical, trend-following basis. That said, Elevance's long-term earnings algorithm and disciplined capital allocation may appeal to investors with a multi-year horizon who view current pressures as cyclical rather than structural. As always, relative positioning can shift quickly with new data, making ongoing monitoring essential for any comparison-based investment framework.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
To compare these two companies we present long-term analysis, their fundamental ratings and make comparative short-term technical analysis which are presented below. The conclusion is CVS is a Buy and ELV is a Buy.
Long-Term Analysis
It is best to consider a long-term outlook for a ticker by using Fundamental Analysis (FA) ratings. The rating of 1 to 100, where 1 is best and 100 is worst, is divided into thirds. The first third (a green rating of 1-33) indicates that the ticker is undervalued; the second third (a grey number between 34 and 66) means that the ticker is valued fairly; and the last third (red number of 67 to 100) reflects that the ticker is undervalued. We use an FA Score to show how many ratings show the ticker to be undervalued (green) or overvalued (red).
CVS’s FA Score shows that 3 FA rating(s) are green whileELV’s FA Score has 2 green FA rating(s).
- CVS’s FA Score: 3 green, 2 red.
- ELV’s FA Score: 2 green, 3 red.
Short-Term Analysis
It is best to consider a short-term outlook for a ticker by using Technical Analysis (TA) indicators. We use Odds of Success as the percentage of outcomes which confirm successful trade signals in the past.
If the Odds of Success (the likelihood of the continuation of a trend) for each indicator are greater than 50%, then the generated signal is confirmed. A green percentage from 90% to 51% indicates that the ticker is in a bullish trend. A red percentage from 90% - 51% indicates that the ticker is in a bearish trend. All grey percentages are below 50% and are considered not to confirm the trend signal.
CVS’s TA Score shows that 4 TA indicator(s) are bullish while ELV’s TA Score has 4 bullish TA indicator(s).
- CVS’s TA Score: 4 bullish, 4 bearish.
- ELV’s TA Score: 4 bullish, 4 bearish.
Price Growth
CVS (@Managed Health Care) experienced а +4.16% price change this week, while ELV (@Managed Health Care) price change was -7.81% for the same time period.
The average weekly price growth across all stocks in the @Managed Health Care industry was -0.65%. For the same industry, the average monthly price growth was +5.28%, and the average quarterly price growth was +32.61%.
Reported Earning Dates
CVS is expected to report earnings on Aug 05, 2026.
ELV is expected to report earnings on Oct 21, 2026.
Industries' Descriptions
@Managed Health Care (-0.65% weekly)Managed healthcare industry focuses on providing health/medical and disability insurance plans, generally intended to reduce the cost of for-profit health care. The insurance products might be provided through employer-paid (fully or partly) insurance and benefit programs, or through Medicare/Medicaid. Some of the largest providers of managed health care include Aetna, Humana Inc., and Cigna, and UnitedHealthcare.
| CVS | ELV | CVS / ELV | |
| Capitalization | 141B | 85.3B | 165% |
| EBITDA | 11.1B | N/A | - |
| Gain YTD | 41.745 | 13.387 | 312% |
| P/E Ratio | 48.51 | 17.40 | 279% |
| Revenue | 408B | 200B | 204% |
| Total Cash | 11.8B | N/A | - |
| Total Debt | 78.3B | 31.8B | 246% |
CVS | ELV | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 34 | 20 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 4 Undervalued | 6 Undervalued | |
PROFIT vs RISK RATING 1..100 | 60 | 90 | |
SMR RATING 1..100 | 88 | 98 | |
PRICE GROWTH RATING 1..100 | 3 | 45 | |
P/E GROWTH RATING 1..100 | 5 | 19 | |
SEASONALITY SCORE 1..100 | 85 | 50 |
Tickeron ratings are formulated such that a rating of 1 designates the most successful stocks in a given industry, while a rating of 100 points to the least successful stocks for that industry.
CVS's Valuation (4) in the Drugstore Chains industry is in the same range as ELV (6) in the Managed Health Care industry. This means that CVS’s stock grew similarly to ELV’s over the last 12 months.
CVS's Profit vs Risk Rating (60) in the Drugstore Chains industry is in the same range as ELV (90) in the Managed Health Care industry. This means that CVS’s stock grew similarly to ELV’s over the last 12 months.
CVS's SMR Rating (88) in the Drugstore Chains industry is in the same range as ELV (98) in the Managed Health Care industry. This means that CVS’s stock grew similarly to ELV’s over the last 12 months.
CVS's Price Growth Rating (3) in the Drugstore Chains industry is somewhat better than the same rating for ELV (45) in the Managed Health Care industry. This means that CVS’s stock grew somewhat faster than ELV’s over the last 12 months.
CVS's P/E Growth Rating (5) in the Drugstore Chains industry is in the same range as ELV (19) in the Managed Health Care industry. This means that CVS’s stock grew similarly to ELV’s over the last 12 months.
| CVS | ELV | |
|---|---|---|
| RSI ODDS (%) | 2 days ago 56% | N/A |
| Stochastic ODDS (%) | 2 days ago 57% | 2 days ago 61% |
| Momentum ODDS (%) | 2 days ago 71% | 2 days ago 61% |
| MACD ODDS (%) | 2 days ago 66% | 2 days ago 58% |
| TrendWeek ODDS (%) | 2 days ago 63% | 2 days ago 58% |
| TrendMonth ODDS (%) | 2 days ago 61% | 2 days ago 53% |
| Advances ODDS (%) | 2 days ago 67% | 2 days ago 56% |
| Declines ODDS (%) | 17 days ago 58% | 7 days ago 56% |
| BollingerBands ODDS (%) | 2 days ago 58% | 2 days ago 68% |
| Aroon ODDS (%) | 2 days ago 62% | 2 days ago 55% |
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CVS and
Correlation & Price change
A.I.dvisor indicates that over the last year, CVS has been loosely correlated with UNH. These tickers have moved in lockstep 62% of the time. This A.I.-generated data suggests there is some statistical probability that if CVS jumps, then UNH could also see price increases.
ELV and
Correlation & Price change
A.I.dvisor indicates that over the last year, ELV has been loosely correlated with UNH. These tickers have moved in lockstep 64% of the time. This A.I.-generated data suggests there is some statistical probability that if ELV jumps, then UNH could also see price increases.