CVS Health(US:CVS) ZACKSยท2025-10-28 13:36Core Insights - The Pharmacy & Consumer Wellness segment at CVS Health is experiencing strong growth, with a revenue increase of 11.8% in the first half of 2025, driven by a favorable pharmacy drug mix and higher prescription volumes [1][8] - CVS has successfully executed its operational strategies across its 9,000 community health locations, supported by a workforce of over 200,000, despite facing pharmacy reimbursement pressures [1] - The front store business is improving due to an expanding customer base and retail share gains, bolstered by the acquisition of Rite Aid assets and prescription files from 626 pharmacies [2][8] - The CVS CostVantage pharmacy reimbursement model is stabilizing margins and enhancing transparency for payors, addressing industry challenges [3][8] - The Zacks Consensus Estimate predicts a 7.4% year-over-year revenue improvement for CVS' Pharmacy & Consumer Wellness segment in the third quarter [4] Financial Performance - CVS Health shares have increased by 46.5% over the past year, significantly outperforming the industry, which saw a decline of 3.1% [7] - The forward five-year price/sales ratio for CVS is 0.25X, compared to the industry's 0.48X, indicating a discount [9] - The Zacks Consensus Estimate for CVS Health's 2025 EPS has risen by 3.9% in the last 90 days, although trends for 2026 are mixed [10] Market Context - Walmart is set to report its fiscal 2026 third-quarter earnings soon and has announced significant discounts for its upcoming Black Friday and Cyber Monday events [5] - Amazon is preparing to release its third-quarter results and has launched a new private-label grocery brand, expanding its market presence [6]