For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.Zacks Premium also includes the Zacks Style Scores. What are the Zacks Style Scores? Develo ...

Core Insights - CVS Health aims to reduce its leverage ratio to a low 3X range, with a current ratio of 4.32 as of March 2025, down from 4.70 at the end of 2024 [1][9] - The company generated approximately $4.6 billion in operating cash flows in Q1 and returned $840 million to shareholders as dividends, maintaining its current dividend level [2][9] - Aetna, CVS' insurance arm, is on a multi-year path to recover margins, addressing challenges from elevated medical costs and Medicaid redeterminations [3] Financial Position Overview - UnitedHealth Group holds liquid and marketable equity securities of $79.1 billion, with cash flows from operations of $5.5 billion in Q1, reflecting low financial leverage at 1.99 times EBITDA [4] - Cigna Group reported a debt-to-capitalization ratio of 43.1% and has repurchased 8.2 million shares for approximately $2.6 billion, indicating a strong balance sheet [5] Market Performance - CVS Health shares have surged 49.2% year-to-date, contrasting with a 2.8% decline in the industry [8] - The stock is trading at a forward five-year sales multiple of 0.22, compared to the industry average of 0.39, and carries a Value Score of A [10] Earnings Estimates - Consensus estimates for CVS' earnings in 2025 and 2026 show a bullish trend, with current estimates of $6.12 for 2025 and $7.00 for 2026 [11][12]

Core Insights - CVS Health's Pharmacy and Consumer Wellness segment has experienced an 11.1% year-over-year revenue growth in Q1 2025, driven by high vaccine demand and an extended flu season, raising questions about sustaining this momentum throughout fiscal 2025 [1][9] Group 1: Business Performance - The favorable pharmacy drug mix, particularly the rising demand for high-cost branded GLP-1 medications, is expected to benefit CVS [2] - CVS Pharmacy's inclusion in Novo Nordisk's NovoCare pharmacy network allows for expanded access to Wegovy at over 9,000 community health locations [2] - The implementation of the CostVantage pharmacy reimbursement model is anticipated to enhance future results by reducing market cross-subsidization [2] Group 2: Sales and Market Trends - Rising same-store sales and prescription volumes are projected to boost adjusted operating income for CVS Health's PCW business [3] - Retail pharmacy remains crucial, supported by demographic trends and increasing prescription drug usage [3] Group 3: Strategic Developments - CVS completed a three-year plan to close 900 stores, achieving a retail pharmacy script share of 27.6% in Q1 2025, an increase of nearly 70 basis points year over year [4] - The company's consistent execution and commitment to pharmacy access are expected to maintain its market position despite a smaller footprint [4] Group 4: Competitive Landscape - Walmart reported strong health and wellness sales growth in fiscal 2026, with a 91% year-over-year increase in deliveries under three hours [6] - Walgreens Boots Alliance achieved 7.8% year-over-year sales growth in its U.S. Retail Pharmacy segment, focusing on a retail-pharmacy-led turnaround strategy [7] Group 5: Financial Metrics - CVS shares have increased by 18.9% over the past year, outperforming the industry's 14.6% decline [8] - The stock is trading at a forward 12-month earnings multiple of 10.18X, lower than the industry average of 14.07X, and carries a Value Score of A [10]

Core Insights - During market turbulence, investors often seek dividend-yielding stocks, which typically have high free cash flows and offer substantial dividends [1] Group 1: Stock Ratings and Analyst Insights - Pfizer Inc. (PFE) has a dividend yield of 6.79%. Guggenheim analyst Vamil Divan reiterated a Buy rating with a 73% accuracy rate. Citigroup analyst Andrew Baum maintained a Neutral rating and reduced the price target from $30 to $29, with a 69% accuracy rate [7] - CVS Health Corporation (CVS) has a dividend yield of 3.99%. Truist Securities analyst David Macdonald maintained a Buy rating and raised the price target from $82 to $84, with a 67% accuracy rate. RBC Capital analyst Ben Hendrix maintained an Outperform rating and increased the price target from $74 to $81, with a 61% accuracy rate [7] - Merck & Co., Inc. (MRK) has a dividend yield of 3.93%. Citigroup analyst Andrew Baum downgraded the stock from Buy to Neutral and cut the price target from $115 to $84, with a 69% accuracy rate. Guggenheim analyst Vamil Divan reiterated a Buy rating with a price target of $115, maintaining a 73% accuracy rate [7] Group 2: Recent News - Pfizer announced positive topline Phase 3 results for HYMPAVZI™ in Hemophilia A or B with inhibitors on June 26 [7] - CVS Health will hold a conference call on July 31 to discuss second quarter 2025 financial results [7] - The FDA accepted and granted priority review for Merck's new supplemental Biologics License Application for Winrevair based on the Phase 3 ZENITH trial on July 2 [7]

Key Takeaways CNC, CVS, ODP, STNE and PSFE have low P/B ratios and strong projected earnings growth rates. Criteria include low P/B, P/S, P/E, PEG under 1, price greater than $5, and strong trading volume. Each stock holds a Value Score of A or B and has a favorable Zacks Rank of 1 or 2.The price-to-book (P/B) ratio is widely favored by value investors for identifying low-priced stocks with exceptional returns. The ratio is used to compare a stock’s market value/price to its book value.The P/B ratio is ca ...

Market Overview - U.S. stock markets experienced a successful June, with the Dow, S&P 500, and Nasdaq Composite increasing by 4%, 5.7%, and 5.7% respectively, closing at record-high levels for the first half of 2025 [1] - Despite this success, the first half of 2025 marked the weakest performance for the indexes since 2022, with potential catalysts for the second half including a U.S.-China trade deal, anticipated interest rate cuts by the Fed, and reduced recession fears [2] Imaginary Portfolio - An imaginary diversified portfolio was created, consisting of five stocks that each gained over 50% in the first half of 2025, with further upside potential indicated by favorable Zacks Ranks [3][4] Company Highlights Jabil Inc. (JBL) - Jabil is benefiting from strong momentum in capital equipment, AI-powered data center infrastructure, and digital commerce, with a focus on product diversification [7] - Expected revenue and earnings growth rates for Jabil are 5.9% and 18.5% respectively for the next year, with a 9% improvement in the Zacks Consensus Estimate for next-year earnings over the last 30 days [9] Howmet Aerospace Inc. (HWM) - Howmet Aerospace is experiencing growth in the commercial aerospace market, supported by robust build rates and recovery in wide-body aircraft, along with strength in its defense aerospace business [10] - Expected revenue and earnings growth rates for Howmet are 8.5% and 29% respectively for the current year, with a 0.3% improvement in the Zacks Consensus Estimate for current-year earnings over the last seven days [11] CVS Health Corp. (CVS) - CVS Health is investing in technology to reduce costs and enhance customer experience, with improved Medicare Advantage star ratings aiding its position [12] - Expected revenue and earnings growth rates for CVS are 3.5% and 12.6% respectively for the current year, with a 2.3% improvement in the Zacks Consensus Estimate for current-year earnings over the last 60 days [14] Carvana Co. (CVNA) - Carvana's acquisition of ADESA's U.S. operations has strengthened its logistics and auction capabilities, with expectations for year-over-year growth in retail unit sales [15][16] - Expected revenue and earnings growth rates for Carvana are 32.1% and over 100% respectively for the current year, with a 7.8% improvement in the Zacks Consensus Estimate for current-year earnings over the last 30 days [17] NRG Energy Inc. (NRG) - NRG Energy operates in the energy and home services sector, producing electricity from various sources and expanding operations through both organic and inorganic initiatives [18][19] - Expected revenue and earnings growth rates for NRG are 2.6% and 17% respectively for the current year, with a 2.8% improvement in the Zacks Consensus Estimate for current-year earnings over the last 60 days [20]

Core Insights - The stock market has experienced volatility in the first half of 2025, but several companies have shown impressive returns driven by AI momentum, energy sector strength, and bold corporate strategies [1] Company Performance - Palantir Technologies (PLTR) has achieved an 80.07% year-to-date return, significantly outperforming the broader market, driven by its growing role in AI and expanding government business [2][3] - NRG Energy (NRG) follows closely with a 77.99% gain, supported by strong Q1 earnings and the acquisition of natural gas power plants, which increased its generation capacity [6] - Howmet Aerospace (HWM) reported a 71.90% return, benefiting from the global rebound in air travel and rising demand for aircraft components [8] - Seagate Technology (STX) surged 66.20%, capitalizing on the growing need for data storage solutions for AI infrastructure [8] - Supermicro (SMCI) jumped 60.92%, driven by its role in building AI-optimized servers [8] - GE Vernova (GEV) climbed 60.87% amid increasing investor interest in renewables and grid modernization [10] - Newmont (NEM) gained 56.52%, driven by rising gold prices due to inflation concerns and a weaker dollar [10] - Uber (UBER) rose 54.71%, benefiting from strong performance in its mobility and delivery businesses [10] - GE Aerospace (GE) advanced 54.54% on strong demand in commercial and defense aviation [10] - CVS Health (CVS) increased by 53.00%, supported by restructuring efforts and a push into healthcare services [11] - Jabil (JBL) rose 51.47%, backed by steady demand in consumer electronics and automotive markets [11]

Core Insights - Amazon's entry into healthcare has significantly disrupted the traditional pharmacy landscape, raising concerns for established players like CVS Health [1][3] - CVS Health is rebounding strongly in 2025, becoming one of the top performers in the S&P 500, with a focus on integrated care and leveraging its extensive physical presence [2][10] Group 1: Company Strategies - Amazon is leveraging its logistics capabilities and technology to redefine healthcare delivery, including AI-powered prescription fulfillment and at-home diagnostics [1][5][7] - CVS Health is capitalizing on its vast network of over 9,000 retail pharmacies and integrated services to provide coordinated care and improve patient outcomes [4][6] Group 2: Performance Metrics - CVS Health reported $95 billion in revenue in Q1 2025 and has achieved a year-to-date stock performance of 56%, ranking eighth in the S&P 500 [2][10] - In contrast, Amazon's stock has only risen by 1.8% year-to-date, placing it at number 262 in the S&P 500 rankings [10][9] Group 3: Financial Projections - The Zacks Consensus Estimate for CVS's 2025 earnings per share suggests a 12.7% improvement from 2024, indicating strong growth potential [12] - Amazon's 2025 EPS is projected to improve by 12.5% over the previous fiscal year, reflecting ongoing growth in its healthcare initiatives [14] Group 4: Valuation Comparisons - CVS is trading at a forward price-to-earnings ratio of 10.48X, which is above its five-year median, yet remains attractively valued compared to Amazon's 33.3X [15] - Amazon's current valuation is below its five-year median, suggesting potential for future growth but also indicating higher execution risk in its healthcare ventures [15][16]

Key Takeaways CVS adds Wegovy to Caremark formularies while removing Zepbound to balance costs and access. The move supports CVS' Weight Management program, pairing GLP-1 with lifestyle coaching. CVS shares are up 48.8% YTD, trading at a forward P/S of 0.21X versus the industry average of 0.40X.For CVS Health (CVS) , the key to building customer trust is to enhance access to life-changing medications and also make them affordable. Beginning July 1, the company’s Pharmacy Benefit Manager (“PBM”), CVS Carem ...

Group 1 - CVS Health will hold a conference call on July 31, 2025, at 8:00 a.m. ET to discuss its second quarter 2025 financial results [1] - An audio webcast of the conference call will be available on the CVS Health Investor Relations website and archived for one year [1] Group 2 - As of March 31, 2025, CVS Health operates over 9,000 retail pharmacy locations and more than 1,000 walk-in and primary care medical clinics [2] - The company is a leading pharmacy benefits manager with approximately 88 million plan members and serves over 800,000 patients annually through its senior pharmacy care business [2] - CVS Health provides health insurance products and services to an estimated 37 million people, including Medicare Advantage offerings and a standalone Medicare Part D prescription drug plan [2] - The company's integrated model focuses on personalized, technology-driven services to enhance access to quality care, improve health outcomes, and reduce overall costs [2]