Core Insights - Rising prescription drug costs are a significant concern in healthcare, with pharmacy benefit managers (PBMs) under scrutiny for their management of drug benefits [1] - CVS Health's Caremark has secured a five-year contract with CalPERS, replacing OptumRx, to provide outpatient prescription drug benefits to nearly 587,000 members starting January 1, 2026 [2][8] - CVS Caremark was chosen for its ability to offer more affordable drug benefits and strong contract terms, including a $250 million risk for failing to meet cost control and clinical quality targets [3][8] Company Developments - CVS Caremark will manage formulary changes for CalPERS, promoting affordability in drug coverage, including weight management medications, potentially saving clients 10-15% annually [4][8] - CVS shares have increased by 6.3% over the past year, contrasting with a 17.7% decline in the industry [7] - The stock is trading at a forward one-year price-to-earnings ratio of 9.60, below the industry average of 14.00, and has a Value Score of A [9] Industry Trends - The global PBM market is growing, with CVS Caremark, OptumRx, and Express Scripts leading the market [5] - Elevance Health reported a 33% year-over-year increase in CarelonRx operating gains, driven by higher prescription volumes and recent acquisitions [5] - Humana has partnered with Epic to integrate health plan information into MyChart, enhancing access for Medicare Advantage members [6] Financial Outlook - Analyst estimates for CVS Health's earnings in 2025 and 2026 show an upward trend, with current estimates for the next year at $7.00 per share [10][11] - CVS currently holds a Zacks Rank 1 (Strong Buy), indicating positive market sentiment [11]

According to a SEC filing dated July 10, Ferguson Wellman Capital Management sold 155,436 shares of UnitedHealth Group(UNH -1.34%) during the quarter ending June 30, 2025, with transactions totaling $59.76 million. The fund's remaining position stood at 33,063 shares worth $10.31 million as of June 30, 2025. What else to know What happened Ferguson Wellman's sale reduced UnitedHealth Group to 0.18% of its $5.68 billion 13F AUM. Top five holdings as of June 30, 2025: Other things to know about UnitedHealth G ...

CVS Health Corporation (CVS) is scheduled to report first-quarter 2025 results on May 1, before the opening bell. 3 Factors to Focus on Ahead of CVS' Q1 Earnings A Turnaround at Aetna Expected: Aetna's underperformance in 2024 was concerning. However, CVS expected benefit redesigns and improved rate negotiations to lead to margin recovery starting from 2025. While utilization trends remained elevated in the fourth quarter of 2024, data showed moderation in inpatient costs, a positive sign for medical cost c ...