CVS Health Corporation (CVS) Hit a 52 Week High, Can the Run Continue?

Group 1: Company Performance - CVS Health shares have increased by 17.1% over the past month, reaching a 52-week high of $73.23, and have gained 63% since the start of the year, outperforming the Zacks Medical sector and the Zacks Medical Services industry, which saw gains of -2.3% and 0.7% respectively [1] - The company has a strong record of positive earnings surprises, having beaten earnings consensus estimates in the last four quarters, with the latest EPS reported at $1.81 against a consensus estimate of $1.47, and revenue exceeding estimates by 5.54% [2] Group 2: Earnings Projections - For the current fiscal year, CVS Health is expected to report earnings of $6.32 per share on revenues of $390.17 million, reflecting a 16.61% increase in EPS and a 4.66% increase in revenues [3] - For the next fiscal year, earnings are projected to be $7.14 per share on revenues of $408.98 million, indicating a year-over-year change of 12.94% in EPS and 4.82% in revenues [3] Group 3: Valuation Metrics - CVS Health has a Value Score of A, with Growth and Momentum Scores of C and F respectively, resulting in a VGM Score of B, indicating it is a suitable choice for value investors [6][8] - The stock trades at 11.6X current fiscal year EPS estimates, below the peer industry average of 17.7X, and at 8.1X trailing cash flow compared to the peer group's average of 10.5X, with a PEG ratio of 0.81 [7] Group 4: Zacks Rank - CVS Health holds a Zacks Rank of 2 (Buy), supported by a solid earnings estimate revision trend, making it a favorable option for investors seeking stocks with strong potential [8] Group 5: Industry Comparison - CVS Health remains a strong choice within the Medical Services industry, which ranks in the bottom 64% of all industries, but still shows promising tailwinds alongside peers like Progyny, Inc. [9][11]