CVS Health Corporation (NYSE:CVS) is one of the best large cap value stocks to buy now. Bank of America Securities analyst Allen Lutz maintained a Buy rating on CVS Health Corporation (NYSE:CVS) on September 25 and set a price target of $89.00. Is CVS Health a Defensive Pick Among the Best Performing in 2025 Dividend Stocks? CVS Health Corporation (NYSE:CVS) reported $98.9 billion in total revenues for fiscal Q2 2025, up 8.4% compared to the prior year period. GAAP diluted EPS for the quarter was $0.80, ...

Core Insights - CVS Health Corporation is recognized as one of the Best High Yield Stocks to Buy in October [1] - The company operates beyond a pharmacy chain, providing healthcare services such as lab work, health screenings, vaccinations, and treatment for minor injuries through in-store clinics [2] - CVS Health owns Aetna, the fifth largest health insurer in the U.S., covering 36 million people [3] Business Operations - CVS commands approximately 27% of the nationwide prescription volume in the pharmacy sector [4] - The company has been focusing on a value-based healthcare model, enhancing its primary care and home-based care capabilities through acquisitions like Signify Health and Oak Street Health [4] - CVS has consistently paid dividends to shareholders since 1997, currently offering a quarterly dividend of $0.665 per share, resulting in a 3.51% dividend yield as of September 27 [5]

Core Insights - Vertiv Holdings Co. has been named "Stock to Study" by BetterInvesting Magazine for December 2025, indicating potential interest from investors regarding its stock valuation [1][2] - The upcoming issue will provide a comprehensive report on Vertiv's financial metrics, including sales, earnings, pre-tax profit, and return on equity, accessible through BetterInvesting's platform [2] - CVS Health Corp. will also be featured in the same issue, with a focus on its undervalued status, suggesting a broader analysis of investment opportunities [3] Company Analysis - Vertiv's financial data will be presented in a user-friendly format, allowing investors to evaluate key performance indicators on a single page [2] - The Editorial Advisory and Securities Review Committee of BetterInvesting, composed of experienced CFA members, is responsible for the selection of companies for further study, highlighting the credibility of the analysis [3] Educational Initiatives - BetterInvesting, a nonprofit organization, has been dedicated to empowering investors since 1951, providing educational resources and tools to enhance financial literacy [5] - The organization emphasizes the importance of independent analysis and encourages investors to utilize the Stock Selection Guide for informed decision-making [4]

Accessibility StatementSkip Navigation Investor contactLarry McGrath800-201-0938[email protected] SOURCE CVS Health WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+Newsrooms &Influencers 9k+Digital MediaOutlets 270k+JournalistsOpted In GET STARTED WOONSOCKET, R.I., Sept. 30, 2025 /PRNewswire/ -- CVS Health (NYSE: CVS) will hold a conference call with analysts and investors on Wednesday, October 29, 2025, at 8:00 a.m. ET to discuss third quarter 2025 financial results. An audio webcast of the ev ...

Core Viewpoint - CVS Health is experiencing a bullish trend in the market, driven by increased market share and strong financial performance, positioning it as a potential investment opportunity [2][3][6]. Financial Performance - CVS Health reported net revenues of $98.9 billion, reflecting an annual growth rate of 8.4% [11]. - The company achieved a net earnings per share (EPS) of $1.81, which is 24% above the MarketBeat consensus of $1.46 [10]. - CVS has a free cash flow of $185.1 billion, providing ample capacity to sustain and expand its dividend program [14]. Market Position - CVS Health's market share has increased due to the decline of its competitor, Walgreens Boots Alliance, which has been closing physical locations [2][6]. - The stock has seen a year-to-date rally of 70.1%, indicating strong investor interest and confidence [6]. Analyst Ratings and Forecasts - The average price target for CVS Health is $78.25, with a high forecast of $87.00, suggesting a potential upside of 5.07% [5][8]. - Analysts have rated CVS Health as a Moderate Buy based on 24 ratings, reflecting positive sentiment among market experts [6][17]. Institutional Investment - Institutional buying of CVS stock reached $3.3 billion over the past quarter, indicating strong confidence from large investors [7]. - Ameriprise Financial increased its holdings by 5.2%, bringing their stake to $565.4 million [7]. Strategic Opportunities - CVS is leveraging government health program connections to enhance its service offerings and improve operational efficiencies [12][13]. - The company is expected to continue reinvesting in technology to strengthen its market position and improve patient-caregiver connections [13][15].

Core Insights - Zacks Premium offers various tools for investors to enhance their stock market strategies and confidence [1] - The Zacks Style Scores are designed to help investors identify stocks with the potential to outperform the market in the short term [2] Zacks Style Scores Overview - The Style Scores categorize stocks into four types: Value Score, Growth Score, Momentum Score, and VGM Score, each focusing on different investment strategies [3][4][5][6] - Value Score emphasizes finding undervalued stocks using financial ratios [3] - Growth Score focuses on a company's financial health and future growth potential [4] - Momentum Score identifies trends in stock prices and earnings estimates to optimize entry points [5] - VGM Score combines all three styles to highlight stocks with the best overall characteristics [6] Zacks Rank and Performance - The Zacks Rank is a proprietary model that uses earnings estimate revisions to guide investment decisions [7] - Stocks rated 1 (Strong Buy) have historically produced an average annual return of +23.64% since 1988, significantly outperforming the S&P 500 [8] - There are over 800 top-rated stocks available, making it essential for investors to utilize Style Scores for better selection [9] Stock Selection Strategy - Investors should prioritize stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal success [10] - Stocks with lower ranks, even if they have good Style Scores, may still carry risks due to negative earnings outlooks [11] Company Spotlight: CVS Health - CVS Health Corporation, a pharmacy innovation company, is currently rated 3 (Hold) with a VGM Score of A [12] - The company has a Momentum Style Score of B, with shares increasing by 6.2% over the past month [13] - Recent upward revisions in earnings estimates indicate a positive outlook, with the Zacks Consensus Estimate rising by $0.22 to $6.34 per share [13]

Core Insights - The article discusses CVS Health Corporation as a potentially strong investment opportunity amidst market turmoil, emphasizing the company's competitive advantages and defensibility [1]. Group 1: Company Analysis - CVS Health Corporation is identified as a high-quality company capable of outperforming the market in the long run due to its economic moat [1]. - The analysis focuses on companies in both European and North American markets, without restrictions on market capitalization, indicating a broad investment scope [1]. Group 2: Analyst Background - The analyst has a Master's Degree in Sociology with a focus on organizational and economic sociology, and a Bachelor's Degree in Sociology and History, providing a unique perspective on market analysis [1].

Group 1 - CVS Health shares fell 0.18% to close at $76.36 on Wednesday, breaking a six-session winning streak [1] - Despite the modest fall, shares remain up 7.42% over the past month [1]

Core Viewpoint - Omnicare, a subsidiary of CVS Health, has filed for Chapter 11 bankruptcy protection following a federal court ruling that ordered it to pay $949 million for fraudulent claims related to prescription drugs [1][4]. Group 1: Legal Issues - The federal government accused Omnicare of filling prescriptions that were expired or had no refills, leading to allegations of fraud against government-funded programs like Medicaid and Medicare from 2010 to 2018 [2]. - Omnicare's President stated that the lawsuit did not allege any harm to patients and that the government did not claim that patients received anything other than the necessary medication [3]. Group 2: Financial Situation - Omnicare's bankruptcy petition indicated it has up to $10 billion in debt and up to $500 million in assets [4]. - The bankruptcy filing aims to resolve issues related to the recent court ruling and address broader financial challenges in the long-term care pharmacy industry [5]. Group 3: Operational Continuity - Despite the bankruptcy filing, Omnicare will continue to provide pharmacy services to long-term care facilities during the court-supervised process [6]. - The company has secured $110 million in debtor-in-possession financing to maintain liquidity and meet ongoing business obligations during the bankruptcy process [7]. Group 4: Market Reaction - Following the news of the bankruptcy filing, shares of CVS Health rose by 1% [7].

Core Insights - CVS Health is experiencing a strong start in the 2026 Pharmacy Benefit Manager (PBM) selling season, with Caremark maintaining a historical retention rate in the upper 90% range [1][9] - The partnership with Novo Nordisk aims to enhance access to Wegovy, a GLP-1 drug, for members at a more affordable price [2][9] - CVS anticipates a potential 10-15% year-over-year savings in the anti-obesity medication sector for members utilizing its formularies [3] - The removal of Humira from major formularies has led to over $1 billion in savings for CVS clients by promoting the use of biosimilars [4] - Starting January 1, 2026, CVS will provide outpatient prescription drug benefits to approximately 587,000 CalPERS members [5][9] - CVS Health shares have increased by 67.4% year-to-date, contrasting with a 1% decline in the industry [8] - The company's forward five-year price/earnings (P/E) ratio stands at 10.87X, below the industry average of 15.05X, indicating a favorable valuation [10] Company Developments - CVS Health's Caremark unit is effectively driving down prescription and pharmacy costs through increased competition [1] - The integration of Wegovy into CVS's weight management program has resulted in participants achieving double-digit percentage weight loss at 12 months [2] - CVS's strategic formulary actions are designed to enhance affordability and access to essential medications [3][4] Competitive Landscape - UnitedHealth Group's Optum Rx has raised reimbursement minimums for branded drugs to support independent pharmacies, highlighting competitive dynamics in the pharmacy sector [6] - Amazon's expansion of its logistics services may impact the competitive landscape for pharmacy benefit management and drug distribution [7] Financial Estimates - Current analyst estimates for CVS's earnings per share (EPS) for 2025 and 2026 are projected at 6.34 and 7.13 respectively, indicating stable growth expectations [11]