CVS Health Corporation (CVS), located in Woonsocket, Rhode Island, has a market capitalization of $70.9 billion. As a leader in pharmacy innovation, the company provides a wide array of services, including pharmacy benefit management, mail order, retail and specialty pharmacy, disease management, and retail clinics. 

Shares of the healthcare plan provider have lagged behind the broader market in the last year. While CVS has declined 17% over this time frame, the broader S&P 500 Index ($SPX) has rallied by 36.9%. In 2024, the stock dropped 28.5%, compared to SPX’s 19.6% return on a YTD basis. 

Narrowing the focus, CVS has also underperformed the iShares U.S. Healthcare Providers ETF (IHF), which has gained 6% over the past year.

Shares of CVS Health dropped 3.2% after the release of its disappointing Q2 earnings on Aug. 7. While it surpassed its EPS expectations, it fell short of revenue expectations.

For the current fiscal year, ending in December, analysts expect CVS’s EPS to decline 26.7% year over year to $6.41. Moreover, the company’s earnings surprise history is mixed. It exceeded the consensus estimate in three of the last four quarters while missing on one occasion.

CVS Health stock has a consensus “Moderate Buy” rating. Out of 24 analysts covering the stock, 12 recommend a "Strong Buy," three suggest a "Moderate Buy," and nine advise a "Hold."

The consensus rating is more bullish than a month ago when ten analysts gave the stock a “Strong Buy.”

On Oct. 24, Mizuho Financial Group, Inc. (MFG) cut CVS Health's price target from $73 to $66, keeping an “Outperform” rating. The firm revised estimates after CVS's preannouncement, expecting medical loss ratios to improve in 2025 but remain above 2023 levels.

The mean price target of $69.87 suggests a 23.8% premium to CVS from current levels. Furthermore, the Street-high target of $93 represents an upside potential of 64.7%.

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On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.