JPMorgan Names CVS a Top Pick as Turnaround Gains Traction

Core Insights - CVS Health Corporation is recognized as one of the 20 Best Performing Dividend Stocks in 2025 [1] - JPMorgan has identified CVS as a top pick in healthcare services, highlighting a significant stock recovery with an 80.5% gain in 2025 after a 43% drop in 2024 [2] - Analysts project a further 19% upside based on average price targets, with CVS providing positive guidance for 2025/2026 and mid-teens CAGR for adjusted EPS through 2028 [2][3] Financial Performance - CVS reported a record revenue of $102.9 billion in the third quarter, marking a 7.8% increase from the same quarter in 2024 [4] - The company is on track to achieve at least $2 billion in cost savings through measures such as store closures and workforce reductions, which are showing positive results [4] Growth Strategy - CVS is transitioning to an acquisition-based model for its Caremark segment, with expectations for normalized growth by 2027 [3] - The company operates across various healthcare sectors, including retail pharmacies, clinics, and prescription benefits management, providing multiple avenues for growth [5]